Fleet News

'Leasing companies are taking advantage of WLTP confusion,' say fleet managers

Stephen Briers

I’ve had some worrying conversations with a few fleet managers who have accused leasing companies of taking advantage of the confusion surrounding the new fuel test regime (WLTP) by inflating lease prices.

They don’t have concrete proof; just a nagging feeling that rates rises aren’t all entirely down to the impact of rising official CO2 emissions on residual values.

It’s a throwback to 2008/09 when the temporary collapse in residual values caused by the recession saw a spike in end-of-contract damage charges being applied by some leasing providers.

Regardless of whether this is happening, what’s clear is that some fleets still view their leasing provider with suspicion.

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Comments

  • earlybird - 24/09/2018 18:39

    If the changes and effects of those changes are explained clearly, it is perfectly clear and easy to see why some rental rates have gone up and equally easy to quantify and so check any such rises. No suspicion needed...!.

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  • Rob Chisholm, Applewood Vehicle Finance Ltd - 28/09/2018 16:14

    I'd suggest that there is unlikely to be wholesale doctoring of the rates. Dealing with the larger leasing co's invariably means going through an administrator, some of whom may not be as experienced as one might hope for (not their fault). Dealing with a smaller leasing broker you would usually be dealing with an experienced individual. What has been happening over the summer is confusion or realignment of pricing structures, whether that be discounts or VRB's/Leasing Support. At times some of these have read as zero. If the individual doesn't notice or understand what is actually happening they are very likely to produce an erroneous quote, which could of course turn into a rental. An experienced individual will notice and will take some sort of action whether that be amending the quote or suggesting an alternative. These past few months have been a very frustrating time for most of us.

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