Fleet management and leasing company Grosvenor Contracts Leasing
is to target the sub-20 unit fleet sector through a newly-launched
broker division, Fleet Connections.
Fleet Connections is targeting relationships with 20 additional
brokers under the new brand, said sales director Stuart Menzies,
with an initial batch of new broker partners “very close” to being
signed up. “We want to work with long-established brokers – those
who have been in the market for three years or more,” he said.
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Grosvenor’s decision to move into the sub-20 vehicle fleet
market was prompted by the fact that the segment makes up over 90
per cent of the entire UK fleet market, by number of units. “For
over 20 years, we have exclusively focused on 20-350 vehicle
fleets, so the sub-20 vehicle sector is a totally new focus for
us,” Menzies said. “There’s massive potential out there.”
Grosvenor decided that using brokers to target SMEs was a far
more cost-effective proposition than the alternative, setting up an
in-house sales team. “Some of the larger lessors are looking to
downsize their broker networks, meaning there is an opportunity for
us,” Menzies said.
The lessor is planning to grow its Fleet Connections business in
a steady and organic fashion, and has assigned three members of
staff to the fledgling division.
“CCA licences, FSA approval and association membership are
‘nice-to-haves’ for potential broker partners, but as we are
looking to sell contract hire to limited companies – along with the
occasional established and reputable limited liability partnership
– they’re not really necessary,” Menzies said. “However, a strong
culture of customer service is necessary as we will expect our
broker partners to offer the same level of service to clients that
we at Grosvenor do, rather than a ‘stack it high, sell it cheap’
mentality.”
In Fleet Connections’ first full year of operation, Menzies said
he would be “overjoyed” if the division leased 500 vehicles , but
he expected the figure to be somewhere below that. “As for 1,000
vehicles in the second year – well, why not?” Menzies added. “We’re
in this market for the long term, offering something slightly
different.”
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By GlobalDataGrosvenor’s independent status and smaller size means it will
offer brokers “more flexibility” than larger, bank-owned contract
hire companies, Menzies opined. “Bank-owned funders have tightened
up on what they will lend to whom. If we can look carefully at all
potential customers, we can be more flexible with payment profiles
than bank-owned contract hire companies, without taking on bad
credits.”
Brokers will have access to Grosvenor’s online quotation system,
and a separate website for Fleet Connections will be launched in
the first quarter.
