Automotive Leasing Franchises in the UK

Published on

automotive leasing franchise

The vehicle rental and leasing industry contributes almost £50 billion to the UK economy every year and employs more than 465,000 people. It is estimated that, in 2017, rental and leasing businesses spent £30 billion on more than 1.8 million vehicles. Of these, 304,000 vehicles were assembled in the UK, feeding £5.4 billion back into the UK economy.

Before we go into automotive leasing franchises, it is important to establish the difference between leasing businesses and rental businesses. A lease is a long-term agreement between someone in need of a vehicle (a lessee) and a car dealership (a lessor). The lessee uses the vehicle for everyday use over a long period of time and has the option to buy it at the end of the lease period this is called a lease-to-own deal. On the other hand, a rental agreement is taken out between someone in need of a vehicle and a rental agency when a vehicle is needed for a short period of time, such as for a holiday, a specific event or to use while the persons usual vehicle is being serviced or repaired.

Read more:

Advantages of Leasing a Vehicle

  • Lessees can drive a vehicle that they could not afford to buy
  • Lessees drive the vehicle while it is still new and in good condition, so often the maintenance and upkeep are covered by the vehicles warranty, reducing costs for the driver
  • While those who opt to buy their vehicle find that it has depreciated in value by the time it comes to selling it, those who lease their vehicle can simply hand it back to the lessor

Disadvantages of Leasing a Vehicle

  • While buyers make a one-off payment to own their vehicle, lessees are locked into monthly payment agreements which can go on forever if they continue to lease vehicles rather than buy them
  • Lease contracts often limit lessees to the number of miles they can drive every month. If drivers exceed that number, they may have to pay a penalty fee
  • Further fees will also be incurred if lessees return their vehicles in poor condition at the end of the lease period

If lessees adhere to their specified agreement, however, leasing can be an attractive alternative to buying a vehicle outright. So, lets have a look at some of the vehicle leasing franchises available for potential investors.

Multileasing

This is a vehicle leasing and finance broker that acts as an automotive consultant which advises clients on vehicle leasing, finance and fleet management. This business is in the middle of an expansion programme and is actively looking for investors with knowledge of or experience in industries relating to vehicles, vehicle finance, leasing, brokering or fleet management consultancy. Any gaps in industry knowledge will be filled with Multileasings one-week intensive training programme which will prepare franchisees to lead their business to success. Ongoing training is also offered to franchisees in order to ensure maximum working efficiency. It costs just £4,995 to launch a Multileasing franchise, and franchisees should be prepared to pay a monthly management fee of £299.

Move Vehicle Leasing

This company is a vehicle leasing and finance broker franchise that sources the best car and van lease contracts from a range of automotive dealers for business and personal use. The automotive franchise is proud to be a national franchise that can deliver a vehicle directly to a clients home or office anywhere in the UK. There are also a range of franchising options with Move Vehicle Leasing. A local franchise will set investors back just £1,995, but regional franchises are also available for those with a slightly larger budget, costing £2,995. For more ambitious investors, a national franchise could offer a higher return on investments, costing £4,995 to set up. No matter the franchising option chosen, a monthly management fee of £299 must be paid to Move Vehicle Leasing. While industry experience is advantageous, an initial one-day training session will brief new recruits on the franchise process, and further training takes place regularly. Whats more, the company has a dedicated sales and administration support team to help new franchisees through their franchising journey.

Similar Investment Opportunities at Point Franchise

While Point Franchise doesnt currently offer any automotive leasing businesses, there are some similar options available.

Green Motion Car and Van Rental

Green Motion is the only vehicle rental company in the world that is 100 percent managed by franchisees. The business was launched in 2005 when Richard Lowden, Green Motions founder and chairman, identified a gap in the market a vehicle rental company that is kinder to the environment. The business offers a range of vehicles that range from zero-emission, electric cars and hybrid models, to low CO2 and filtered diesel vehicles. Today, Green Motion is an international business with 20 branches in the UK alone, and more spread across 40 countries worldwide. As a result, Green Motion is now the sixth largest car and van rental company in the world.

Franchisees who opt to join the highly successful business will benefit from more than 45 distribution channels, which include brands such as Expedia, Rentalcars and Holiday Autos. Green Motion advertises single and multi-unit franchise opportunities, but the total investment needed to get one franchise off the ground is £140,000. Investors will also need to pay franchise fees of £39,500, but can expect to make £40,000 in revenue after just two years.

Hot Rod Fun

For those looking for something a little bit different, Hot Rod Fun is an automotive franchise that gives people the chance to drive hand-crafted Wenckstern hot rod cars. These are miniature replicas of vintage automobiles from the 1920s, 30s and 40s, built in the Wenckstern factory near Hamburg, Germany. Because these cars are street-legal on various European roads, Hot Rod Fun runs exciting guided tours across the continent. Investors can join this unique franchise with a total investment of £75,000 and a franchise fee of £40,000.

These articles may interest you

How to Become an Estate Agent

In the UK, moving up the property ladder is a big concern to many people. If youre [...]


5 Things to Consider When Starting a Storage Business

More and more of us are needing to use the services of a self-storage business. [...]


Bar and Grill Franchises

As the trend for healthy food sweeps the nation, consumers are increasingly judicious [...]


An Instagram Company Profile? What Franchises Should Consider

As a social media platform with over 800 million active users, Instagram has the [...]


FRANCHISE BUSINESS PROFILES

A Guide To Writing An Excellent Operations Manual

The franchise operations manual is an essential document and all franchises should [...]


START A BUSINESS

Do You Need a Licence to Repair Cars?

By the end of 2016 there were around 37 million vehicles licence d for use in Great [...]


LEGAL ISSUES IN FRANCHISING
Did you enjoy this article? Please rate this article
Be the first to rate this article

0 Comments

post a comment

Characters remaining: 250