FIRST it was Hitachi Capital Vehicle Solutions back in the summer.

Then Lombard Vehicle Management followed suit and pulled out of the car leasing broker market earlier this month.

The effect was to reduce the amount of small business advisers and funding options to small businesses. But then Network reduced the number of its car leasing brokers by virtually half, while Lex Autolease executed a significant cull, also during October.

The effect has been to drastically reduce car funding availability for small businesses.

But it’s all for the good say the leading contract hire and leasing firms, who wish to support the car leasing broker sector but only with long-term relationships that produce high-quality business. In a prepared statement form the BVRLA, which represents vehicle funders, this is what they had to say.

“Car leasing broker business is a key part of our product mix,” said Jo Elms, brand director at Leaseplan’s Network broker franchise division. “We intend to significantly grow our volumes in this area in 2010, but we will use fewer brokers and will deliver higher levels of customer service.”

Reiterating his company’s continued presence in the sector, Steve Cocks, national sales manager at Lex Autolease, said: “Car leasing brokers play a vital role in bringing a growing number of customers to Lex Autolease and we are firmly committed to this important channel. Following a review of all our existing relationships we are continuing a partnership with the vast majority of our brokers based on factors such as quality and volumes of new business.”

This view was backed by Mike Curtis, head of SME divisions at Arval who added: “We are keen to support brokers who offer a relationship-based approach with their customers and provide efficient back-office processing and strong risk management.”

The funders have agreed to work with BVRLA, which regulates BVRLA approved car leasing brokers, to improve broker standards across the sector. These will include a strengthened code of conduct, more training and accreditation and a set of best practice customer service guidelines that focus on whole-life contract management including the end-of-lease period.

“Most car leasing brokers have been raising standards for a few years now and our challenge is to show that our channel can produce business that complements the direct sales operations of the leasing companies,” said Mike Lloyd, managing director of Central Contracts and chairman of the BVRLA Leasing Broker Committee.

Mike Lloyd is a regular contributor to Business Car Manager.

Further information on the car leasing broker market

To read more on this, go to Lombard ditches car leasing brokers, and Business owners face reduced car financing choices.

There’s also more comment in the Editor’s Blog Business on the up.

Car leasing broker arena to be smaller, stronger