So, what is a leasing broker?
Leasing a car can be a daunting experience, especially your first, so it's good to know what a leasing broker is and why you might be better off using one.
A leasing broker is a company that sits between the customer, the dealership and the finance/lease company. They will guide you through the whole process, helping you to choose the right vehicle by going over your requirements, supply the vehicle from one of the many dealerships they work with (at what is normally a discounted price) and arrange the lease on your behalf.
Most leasing brokers will work with hundreds of dealerships all over the UK which means several things, the most important one being that they will know about deals that you don't.
Access to better deals
Let's say you live in London and you want a Ford Fiesta, and the Ford dealership is Glasgow has a deal on. Are you going to know about it? And if you did, would you go all the way to Glasgow to get it? By going through the leasing broker, they will make you aware of this deal, as well as various other deals, and then deliver the vehicle to your door at no extra cost. So, you might be able to get that Fiesta after all.
More stock cars available
Working with so many dealerships also means they are more likely to find the car you want. Often enough, your local dealership will offer you what they have in stock, but that might not always be the best option. A leasing broker can give you options from all the dealerships you work with so that you have more options, and more importantly better options.
They do all the work
It's all well and good going to look at a shiny new car, but you need to know exactly what your options are and the best way to get that car on the road, with you behind the wheel.
Only the best deals
This shiny new car you've seen, how many dealerships will you visit before picking the best quote? 2 or 3? As a leasing broker works with so many dealerships, they will have prices for your shiny new car from tens of different dealers, all readily available. So, rather than using your weekend to drive countless miles to a couple of dealerships, you can speak to your leasing broker and have ten times as many options, in a fraction of the time.
Arranging the lease
Once you have found the deal you want, your broker will take care of everything. They'll arrange the credit, prepare all the paperwork for you to sign and deliver the vehicle to your chosen address. They will also support you throughout your lease, helping with any queries or issues with the vehicle (should you be unlucky enough to have any!), and help organise a new lease when your current one is due to go back.
As you would expect, a lot of brokers have preferential prices which you wouldn't be able to get if you went to the dealership yourself. Rates, as well as favours...
Brokers will have deals in place with dealerships whereby they agree to sell big volumes in return for a discount. Where a broker may sell 100 for a dealership, you are only buying one, and as you'd expect, you are going to get a much better deal for buying 100. By using a broker, you get the discount they have agreed.
Following the above point, dealers might push the boat out a little more for one of their brokers. Don't get me wrong, this might be the case for many walk-in customers too, but not as frequently. As a broker is selling a lot of cars for a dealer, the dealer may just do that one extra favour for them, like get a car out a week early...just in time for your trip, too.
More finance companies
Where a dealership only has one or two different finance companies, it's not unusually for a broker to have 7 or 8+. This means an array of things, that may or may not benefit you.
If a dealership presents you with the best of 2 prices, but a broker presents the best out of 8, it's likely that the broker's will be better. Pricing changes on a monthly basis, so using a broker who has 8 different finance providers means you are more likely going to get the best deal available.
Higher acceptance rate
With every finance company comes their underwriting terms. Where one may require a certain something, another may not. Naturally this means that you have more chance of an approval as a broker can provide you with the best pricing dependant on your situation, where not all dealerships can.
Considerations when using a broker
Like anything, there is always things you need to consider, and you should always do your research. In every industry you will find good players, and bad players. Don't end up using a bad one!
Too good to be true
"Did you see the Mercedes at £99 per month? I called them but they had just sold out! What are the chances". Unfortunately, some brokers will put up deals just to get you to call in and when you're on the phone, offer you something else. Whilst this can happen and you shouldn't always put it down to bad practice, do you research on the company and make sure it's not a reoccurring thing. You need to make sure the broker has YOUR interests at heart and not their own.
This might sound obvious but check out their reviews. If they have good reviews, where did they come from? It's all well and good reading these fantastic 5-star reviews, but if the reviews aren't coming from an independent company, like Trustpilot, then who's to say they are real. It's very easy for a company to only show their good reviews, whereas firms like Trustpilot show them all, good and bad.
FCA & affiliates
Every broker should have an FCA licence which grants them permission to trade. Without it, they shouldn't be operating - simple. All good brokers will have affiliates to respected companies within the industry, such as the BVRLA. The BVRLA set of the code of conduct within the industry and make sure brokers are trading to the correct standards.
At the end of the day a broker is there to help and there is no charge unless you decide to proceed with them. They have a wealth of knowledge and can help make jargon-filled information very clear. If you ever have a question or you're unsure on anything, why not send in a message or pick up the phone.