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A Victorian-based asset finance provider believes vehicle leasing represents a significant opportunity for brokers, after the group’s portfolio revealed a massive increase in motor vehicle purchases.
Frank Crombie, director of aggregation services at NLG Leasing, said recent analysis of the group’s portfolio showed a 263 per cent increase in commercial and private motor vehicle purchases in the 12 months to November 2015.
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“This can be directly attributed to the continued strength in the property market and its flow-on effect on general consumer confidence,” he said.
Mr Crombie said the interest in private and commercial motor vehicle leasing represents a significant opportunity for brokers.
“Diversification into equipment and car finance is a natural extension of the home loan process. It enhances client relationships, increases revenue and provides a competitive advantage in a highly aggressive market,” he said.
“We encourage brokers to simply ask their client about their current assets and financial goals to determine if they’ll benefit from asset financing.”
Mr Crombie said there is an immediate correlation with home sales and subsequent requirements for motor vehicles and recreational goods within the private sector.
“Consumers are increasingly savvy and are favouring financing structures, such as novated leasing that enables upfront use of an asset without the risk or pressure of a sizable upfront payment,” he said. “This model also enables the redirection of cash flow into other areas.”
The commercial market is also demonstrating strong demand for motor vehicles for business purposes, according to Mr Crombie.
“In particular, SMEs are continuously seeking alternate financing solutions,” he said.
“Vehicle acquisition through a leasing structure is a smart alternative that allows the reallocation of funds to other areas of the business that can have a positive effect on efficiencies, productivity, sales, and ultimately growth.”
