The British School of Motoring (BSM),
the UK’s largest driving school group, has decided to switch
thousands of its learner drivers and teachers from Vauxhall Corsas
to Fiat 500s, with the Italian manufacturer to provide 14,000 cars
over the next four years.

The Fiat models will be provided on
contract hire with a 12-month buy-back, said Andrew Sproston, sales
director at Fiat. The General Motors vehicles that the BSM
previously employed were on a six-month buy-back cycle.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Any learner drivers who pass their
test with the BSM will be given a £500 voucher, which can be used
to purchase any model of Fiat at franchised dealerships.

According to BSM research, around 70
percent of learner drivers end up buying the same model of car in
which they passed their test – meaning the partnership could
provide a substantial marketing boost to Fiat.

Sproston emphasised that Fiat is keen
to bolster the future residual values of the 500, through close
co-operation with the BSM and with Fiat’s own dealer network.

The cars which will come back from the
BSM will be “genuine used cars with around 24,000 miles on the
clock,” he said, and will return to the Fiat dealer network at a
rate of around 250 to 300 per month – or less than one car per
dealer, ensuring that residuals will be protected.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“It’s a win-win situation for both
parties,” he commented. “The BSM gets an iconic car that fits its
customer base’s preferences, and which is Euro V-compliant, with
airbags and a tight turning circle and so on, while Fiat gets great
brand exposure.”

Fiat’s joint-venture financial
services unit (which is half-owned by Crédit Agricole) is involved
in providing funding for the deal, Sproston confirmed.