The Pros and Cons of Running a Car Leasing Broker Franchise

Car leasing is becoming more popular than ever in the UK, as drivers recognise the benefits of low monthly payments and the chance to change models every few years. In fact, the entire vehicle rental and leasing industry is thriving. It contributes around £49 billion to the UK economy each year and provides jobs for over 465,000 people.

This means it’s a great time to look into car leasing broker franchise opportunities. There are significant advantages for entrepreneurs who choose the franchise route to business ownership and there are plenty of franchises in the industry that are searching for new franchisees to help take their business to new territories. We’ll take a look at why you should consider starting a car leasing broker franchise.

Car leasing vs. renting

First things first, let’s establish the difference between leasing and renting.

Leasing and rental businesses vary in what they provide. Rental agreements are formed between the customer and a rental agency when the vehicle is required for a short time period. Rental cars are often used for holidays, for example.

On the other hand, leasing involves a long-term agreement between someone who requires a vehicle and a car dealership. They are geared towards individuals who need to use the vehicle for a long time period, and there is the chance to buy it if they want.

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• What are the Best Car Leasing Broker Franchises in the UK?
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Car leasing brokers

If you decide you want to lease a vehicle, you’ll need to work out whether you should use a dealership or an independent leasing broker. This is essentially the middleman between you, car dealerships or manufacturers) and leasing companies. Usually, they act independently and aren’t exclusive to one dealership or leasing company.

It’s more common for the leading leasing brokers to have relationships with a few different leasing companies, which means that the customer can have more choice and sometimes get better rates. Car leasing brokers can be certified by the British Vehicle Rental and Leasing Association (BVRLA), which is a good indicator that they are trustworthy and will do all they can to ensure customers get the best deal.

They can track down your perfect car from anywhere in the country if the cars at your local dealership aren’t making the cut. Brokers take much of the hard work and stress out of the leasing process. They also work well for consumers who prefer the ease and convenience of sorting out their affairs on the phone or online, as this is at the centre of how leasing brokers operate.

Leasing brokers vs. leasing dealerships

When you go to a leasing dealership, you’ll have a smaller choice of car models than if you use a leasing broker. Leasing brokers can offer more than one manufacturer and leasing company, and offer special deals as a result of their partnerships. Dealerships, on the other hand, can be limited to one car brand and funder. With this being said, dealerships often have better access to vehicles that are in stock, and in general they can offer a more personal showroom experience and brand expertise.

Pros of running a car leasing broker franchise

• You’ll be part of a popular process and offer an attractive service to customers. Drivers like the convenience of paying for their car through a monthly direct debit and removing the hassle of a huge, one-time payment that might affect their finances significantly. Also, monthly payments enable drivers to try out a car model that they may not otherwise be able to afford. Even a simple upgrade like the latest model of the consumer’s favourite car is accessible through leasing contracts. So, helping drivers find their perfect vehicle lease should prove lucrative.
• As well as the advantages of being a vehicle leasing broker, you’ll also get the benefits of joining a franchise. You’ll be able to rely on a tried and tested business model, existing brand awareness and plenty of franchisor support. Also, once you’re running your own business as a car leasing broker, you’ll get to attend regular industry and franchise events. Use these opportunities to network with like-minded individuals and glean tips and tricks for your own business unit.

Cons of running a car leasing broker franchise

• Unfortunately, car leasing brokers often charge admin fees, as they take all the hard work out of your hands. This can put customers off.
• Smaller leasing brokers with fewer connections to leasing companies might struggle to get the best deal. Customers will want to know how many other businesses you work with and how much you can offer them before deciding which broker to go for.
• As car leasing broker franchises operate over the phone or online and the car is delivered straight to the customer’s home, they are a better choice for customers who already have a clear idea of which car they would like to lease. For customers who would rather have a browse and see the car in real life, attending a dealership showroom might be more appropriate.

>> Read more:

• Starting a Franchise: Top 5 Things You Must Do
• Top 10 Mistakes To Avoid When Starting A Franchise
• When to consider starting your own business
• Basic guide to franchising
• Conquer your fears and start a franchise
• Reasons not to start a franchise

Car Leasing Franchise Opportunities

Unfortunately, Point Franchise is not offering any car leasing broker franchise opportunities at the moment. However, our franchise directory is always adding new businesses, so be sure to check back regularly if you’d like to become a broker – or any other kind of franchisee!

If you’re interested in joining a vehicle rental business, you could opt to join the eco-friendly car and van rental franchise, Green Motion. This is the sixth largest car and van rental company in the world and requires a total investment of £140,000. To find out more and get in touch, just click here.

The good news is, if you’ve got your heart set on becoming a vehicle leasing broker, there are options for you in the franchising world. Take a look below at two of the best car leasing broker franchise opportunities the UK has to offer.

Move Vehicle Leasing

This car and van leasing broker franchise is looking for business-minded franchisees to help further its national expansion. By joining this franchise, you’ll benefit from an established business model with a great track record. The reputable brand boats that it is ethical in its operations and provides ongoing support from a highly skilled team of staff.

No previous experience is needed but, of course, any knowledge of the car leasing, vehicle finance broker, contract hire or fleet management sectors would be an advantage. The ideal franchisee will be a good communicator and able to liaise with customers, dealerships and leasing companies. Once the business is up and running, you will provide advice and guide customers through the leasing process.

There is scope to open either a local, regional or national Move Vehicle franchise. For the local franchise, the set-up and training fee is £1,995 and the monthly management fee is £199. For the national franchise, the set-up and training fee is £2,995 and the monthly management fee is £399.

Move Vehicle Leasing encourages ambitious entrepreneurs with a good work ethic to get in touch via the contact details on its website.

360 Autoleasing

360 Autoleasing is offering regional car broker franchise opportunities to entrepreneurs who share its vision - to provide an exceptional customer experience. The brand was developed by a team of knowledgeable motor experts with a combined total of 60 years in the industry.

By becoming a 360 Autoleasing franchisee, you’ll join an established brand with a proven business model that you can replicate in your local area. This car franchise also has a sales and admin team that will provide you with all the essential training and ongoing support. It’s not necessary to have experience in the sector, but business acumen, a dynamic personality and an ability to think creatively is a must.

To become a regional franchisee, the set-up and training fee is £1,995 and the monthly management fee is £199. Head to the 360 Autoleasing website to find out more and contact them about your application.

The automotive industry

If you want to turn your love of cars into a business venture, there are plenty of other opportunities for you to get involved in. The automotive industry is a great sector to join – it’s diverse, profitable and almost completely recession-proof. From vehicle repairs to maintenance products to mobile tyre replacement, there are businesses offering a huge variety of different products and services.

The best part is, you don’t even need experience in the automotive sector to be a highly profitable franchisee. As long as you are driven, business-oriented and committed to the brand you join, you’re in a good position to become a successful business owner.

We’ve got a whole host of automotive franchises just waiting for you to pick up the phone – or laptop! Click here to browse our full list of franchise vacancies in the automotive sector and start running your own business today.