Brokers are a very effective and quick method of accessing vehicle leasing products, especially PCP or contract hire.
“Brokers are generally sales channels for specific leasing companies and so are ‘tied’ to certain funding channels,” explains Jackson.
“Be mindful that their commission payments may influence whose interests are being put first.”
However, the country’s third largest vehicle lease company, Lombard Vehicle Management (LVM), has stopped using brokers to introduce new business, and a number of others are now only using a handful of ‘approved’ brokers.
Lombard will now have to develop direct relationships with all its fleet customers and source new business itself.
In recent years the BVRLA has established broker membership status where a code of conduct applies.