Start Your Own Vehicle Leasing Business

01/11/2018 08:00 | Start a business

vehicle leasing

The vehicle leasing and rental industry contributes approximately £49 billion to the UK economy every year, according to a study published by the British Vehicle Rental and Leasing Association. The report also discovered that the industry supports nearly half a million jobs up and down the country.

UK vehicle leasing

Vehicle leasing and rental companies also have a considerable impact on other industries too. With £30 billion spent on more than 1.8 million vehicles from motor dealers in 2017, the sector also supported a £1.6 billion contribution to GDP, 25,400 jobs and £400 million in tax receipts for the UK Government.

Similarly, leasing and rental companies are estimated to have replaced a quarter of its stock in 2017, supporting dealerships and auctioneers and generating a £1.7 billion contribution to GDP, 28,200 jobs and £469m in tax receipts.

All in all, the industry is growing from strength to strength. As well as being good for the economy, leasing and rental companies are also championing climate change initiatives. Thanks to its vast spending power and knowledge, the industry plays a vital role in delivering the UKs move to providing zero-emission road transport for future generations.

The increasing demand for vehicle leasing

Thanks to subscription services and mobile phone contracts, people have become accustomed to paying for goods on a monthly basis and upgrading them regularly. And it appears that the same is true for our cars. The vehicle leasing industry is booming and here are just a few of the reasons why.

It's more cost effective.

You may have the desire to drive the latest model of your favourite car, but your budget may not allow you to buy it outright. This is why the flexibility of a vehicle leasing contract is so appealing to drivers. You can have a brand new car for an affordable monthly payment over a period that suits your requirements.

There's no need to worry about the upkeep

Having a car may be a necessity for many, but the costs of maintaining a vehicle can soon add up. This is another reason why vehicle leasing is an alternative option to owning a car outright. Many car manufacturers include free MOTs and services for a certain number of years to incentivise buyers which takes the hassle and expense out of looking after a vehicle.

Drivers expect more


While a second-hand car can offer freedom for drivers, a vehicle leasing contract can provide flexibility too. If your circumstances change, for example, you could choose to get a better car during the term of the contract rather than having to save to buy a brand new car.

These reasons make entering the vehicle leasing industry a desirable proposition.

Vehicle leasing companies

If youre interested in starting a vehicle leasing business, you may want to consider investing in a franchise. Choosing a franchise over starting an independent company has many benefits. The main advantages are that the franchisor grants you the rights to use their tried and tested systems, processes and brand. All this while providing support, advice and assistance as and when you need it.

Sixt

One such vehicle leasing franchise opportunity is Sixt. The company was established in Germany, and it's still in the hands of Martin Sixts family who started the business with just three rental cars in 1912. With a global presence in 5,000 locations in more than 110 countries, this impressive growth has been possible through franchise opportunities being made available from 1998.

As well as car rental services, Sixt has a vehicle leasing arm to the business. Sixt leasing makes it easy for customers to choose the right vehicle for an extended period. Theres no need for them to pay a large deposit either, just a small monthly fee enables customers to drive away in a brand new vehicle.

If youd like to become a Sixt franchisee, youll be expected to have an understanding of the car leasing and rental industry. However, youll also receive all the necessary training regardless of the experience you bring to the role. From a financial perspective, youll need to fund the significant total investment costs of approximately £440,000 to be considered as a viable franchisee candidate.

As youd expect from a franchise of this size, the training and support package that you'll receive is world-class. Youll get help to find the perfect size and mix of fleet vehicles, as well as all the coaching needed to run your business successfully. Training sessions and workshops will take place in both the UK and the high-tech training academy in Munich.

Europcar

This global brand offers motorists an alternative to buying a car they rarely use or being tied into a lease contract for several years. Europcar has introduced this unique service to allow customers to change their vehicle every month or can keep a car for three months and receive free regular valets. The great news is that as the vehicles are rentals, there are no ongoing maintenance costs to worry about either.

Founded in Paris in 1949, Europcar now has a presence in more than 160 countries. The focus is placed on the quality of cars available for hire which is why the average age of a rental car is just six months. This means that customers get to travel in style and comfort for a fraction of the cost of purchasing a brand new vehicle.

The incredible scale and reputation of this business mean that any potential franchisees should be driven, have credible experience in the industry and have the required investment of approximately £800,000. When you sign on the franchise agreement, you'll attend a comprehensive six-day training programme to teach you about the proven Europcar business model, procedures, and product range.
 

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