Car Leasing is a multi-million-pound industry and one that’s populated by a number of internationally known franchises. In this article, we’re going to explore the reasons that drive lots of people to start their own car leasing franchise and build a brand-new career with a respected franchisor.
It’s estimated that more than 1.6 million people lease a car in the UK and the vehicle rental and leasing industry contributes more than £49 million per year to the UK’s economy – so it’s a great time to become part of a car leasing franchise. Need a bit more convincing? Here are five of the most compelling reasons to start your very own car leasing franchise today.
1. Three quarters of the UK’s new cars are leased
Whether drivers opt for PCP (a personal contract purchase, where they eventually own the vehicle) or a HP (a hire purchase scheme, in which you never actually ‘own’ the vehicle you’re driving), it seems more and more of us are turning our backs on purchasing our vehicles outright. Car ownership is also declining in the UK for a number of reasons, including growing concern for the environment, rising congestion charges, diesel-vehicle-free zones and increasingly busy roads.
This is particularly true in big cities like London, where many inner-city residents rely on public transport to get around. The Times has even reported that the number of teenagers who have driving licences has dropped to the lowest level for 20 years, showing people aren’t in such a rush to hit the roads.
However, most of us do need access to a car on occasion, which is where temporary car leasing franchises can make some serious money. Whether you choose a franchise that specialises in short-term car hire, opt for a long-term leasing business that works primarily with business clients or a mixture of the two, you can take advantage of the large market for rental cars in the UK.
>> Read more:
- The Pros and Cons of Running a Car Leasing Broker Franchise
- Develop Your Own Business Car Leasing Franchise
- What's the Difference Between a Car Leasing and a Car Rental Business?
2. Car Leasing is a financially lucrative industry
Lots of people are choosing to lease their cars rather than own them, as this can be a lot more convenient. Some lease packages include things such as:
- Road tax
- Breakdown cover
- Car warranties
- Service and maintenance packages
A 2019 poll by Turo UK of 2,000 adults found that around 40 percent of UK adults surveyed weren’t bothered about owning a car outright. Instead, more and more people are opting to rent or lease a vehicle as and when they need it.
There are around 40 million people in the UK, and if 40 percent of them aren’t concerned about owning their car, there could be up to 16 million people looking for a lease vehicle. And if they’re willing to pay thousands of pounds each year just to do so, this could mean mega-money for those who offer the service.
3. Businesses now prefer to lease rather than own vehicles
More businesses than ever are choosing to lease out their fleet of vehicles. It’s been reported that more than 300,000 vehicles were leased out by companies in 2017 and this number is likely to have risen since. Reasons cited for doing so included:
- Being cash-poor and looking to limit upfront expenses (particularly for new businesses)
- Better expense forecasting
- Having a new (or nearly new) vehicle that’s under warranty so it costs less
- Cutting down tax bills by writing leased vehicles off as an expense, rather than an asset
- Costs of maintenance and repair covered by the lease agreement
While around 76 percent of all business vehicles leased are still diesel-run, as the nation transitions to the sale of only electric vehicles (EVs) by 2040, it’s likely this figure will decrease. And, considering that EVs are generally much pricier on average than traditional diesel or petrol-run vehicles, it’s likely that leasing will grow even more popular over the coming years. This is because businesses won’t have to find huge sums to buy vehicles outright, opting to lease new, efficient cars regularly to cut costs across their transport network.
4. Take advantage of the UK’s 37 million+ annual tourists
In 2018, 37.9 million people visited the UK and many of these curious tourists explored the country by car, particularly if they were visiting for a road trip or heading to an occasion in a rural location. As the owner of a conveniently located car leasing franchise (say in an airport, bus station or bustling city centre), you’ll be able to capitalise on this market and generate a healthy income.
5. We’re a nation of car lovers
Lots of us want the newest cars, but considering that self-made millionaire David Bach calls buying a brand-new vehicle “the single worst financial decision” anyone can ever make, the case for leasing grows stronger. And he’s not wrong, as a brand new car can depreciate in value by a staggering 35 percent in the first 12 months of its life, leaving you seriously out of pocket when you come to trade it in for a newer model in two or three years’ time.
Aside from wanting a shiny new car to impress our friends, there are lots of reasons why people regularly trade in their vehicle for a newer model. This could include having a job that requires lots of time on the road, spending lots of time driving to visit a spread-out network of family and friends, or having a business that runs best with the newest vehicles in your fleet.
A car leasing franchise like Green Motion Car and Van Rental will give you access to the nation’s many car lovers and let you earn a healthy income servicing both B2C and B2B customers. You’ll connect customers to the right vehicle solutions and become part of the business’ international network of franchisees.
>> Read more:
Should you start your own car leasing franchise?
If you’d like to be part of a growing, multi-million pound industry, enjoy the freedom that being your own boss can offer you and develop your business with the help of a supportive franchisor, this could be the next career step for you. Here at Point Franchise, we have lots of options when it comes to owning your very own car leasing franchise – explore them here.
If you’re interested in looking into other franchise opportunities, browse nearly 300 franchises in our extensive franchise directory here.
Sophie Cole, Point Franchise ©