Car leasing has become more popular than ever in the UK because drivers are beginning to see the benefits of low monthly payments and the opportunity to change models every few years. Truth be told, the entire vehicle rental and leasing industry is experiencing significant growth and contributes around £49 billion to the UK economy each year while also providing jobs for over 465,000 people.
The above statistics go to show that now is a great time to look into car leasing franchise opportunities. There are notable advantages for entrepreneurs who choose the franchise route to business ownership and there are plenty of franchises in the industry that are seeking new franchisees to help build and grow their brand in new territories.
If you decide you want to lease a vehicle, you have to decide whether you should use a dealership or an independent leasing broker. This is more or less the middleman between you, car dealerships, manufacturers, and leasing companies. Most often, they act independently and aren’t exclusive to one dealership or leasing company.
Car leasing brokers can be certified by the British Vehicle Rental and Leasing Association (BVRLA), and this is a good indicator that they are trustworthy. They will genuinely track down the perfect car for their clients from anywhere in the country. They also work well for consumers who want the ease and convenience of making arrangements on the phone or online, as this is at the center of how leasing brokers operate.
Top Car Leasing Franchises in the UK
Once you decide to start a car leasing business, note that there are options for you in the franchising world. To help you make the right choice, here are the top car leasing franchises in the United Kingdom.
Note that this franchise provides businesses and clients with the opportunity to enjoy a vehicle with lower CO2 emissions at market-leading prices. According to reports, the brand is the only 100 percent, fully franchised vehicle leasing and rental company, with every single location being owned and operated by a very dedicated entrepreneur.
Established in the UK in 2007, the company’s network has grown to over 20 locations – and the brand has also expanded internationally, with its vehicle rental services available in over 40 countries.
360 Autoleasing is offering regional car broker franchise opportunities to anyone who is looking to share its vision. According to reports, the brand was developed by a team of well-experienced motor experts with a combined total of 60 years in the industry.
With this franchise, you will be aligning with a result-oriented brand that has a proven business model that you can replicate in your local area. This car franchise also has a sales and admin team that will provide you with all the essential training and ongoing support.
Move Vehicle Leasing
With this franchise, you will benefit from a tried and trusted business model with a deep track record. With no previous experience required, this franchise offers you everything you need to achieve success in this car sector.
Note that the ideal franchisee for this brand will be a good communicator who can easily liaise with customers, dealerships, and leasing companies. Once the business is up and running, you will steadily benefit from expert advice that will teach you how to guide customers through the leasing process
The Fleet Alliance Group
According to reports, Fleet Alliance remains the longest-standing and most successful provider of broker partnerships in the UK. By only targeting the SME sector, all Appointed Representatives can achieve a healthy and profitable business within a few months.
They also make available a complete solution that helps franchisees with the leasing of cars and vans, where their share of the proceeds of your sales is kept visible to ensure everything is transacted through their industry-leading IT systems. It also ensures that you remain in control of your customer information and the status of vehicle orders.
Enterprise Rent-A-Car is an American vehicle rental company that is headquartered in Missouri, US. Coupled with providing car rental services, Enterprise is known to also handle commercial fleet management, commercial truck and lease operations, and used car sales.
Established in 1957, this company, more commonly renowned as the biggest in the sector, operates in more than 85 countries with over 7,600 locations, hundreds of which are spread across the UK.
Practical Car and Van Rental
With over 30 years of experience and their current status as the fourth largest vehicle rental company in the United Kingdom with over 165 locations, Practical Car And Van Rental remain a very good choice to consider when seeking car leasing franchise opportunities.
Note that the services they offer include a massive and wide-ranging fleet of vehicles, with something for every customer’s needs or situation. Have it in mind that this includes 3 door economy, large estate vehicles, people carriers, executive cars, and convertibles.
Also note that they offer customers several personalization options, such as automatic transmission, diesel variants, child seats, and satellite navigation. Coupled with all the above services, they also present a similar range of options for commercial van rental, ranging from small courier vans to refrigerated units and 7.5-ton Lorries
Car On Demand
When you align with this franchise, you will get full brand and marketing support from its dedicated head office team, coupled with quality confirmed inquiries and access to a fleet of vehicles to get you on the road to success.
With unflinching access to their online CRM system, full administration and billing support, plus their fleet management system, you can easily set up your business and focus on growing sales with little or no administrative distractions.
Have it in mind that their fully automated quoting software makes pricing quick, simple, and effective. You’ll also receive complete ongoing support and training
Steps on How to Open a Car Leasing Franchise in the UK
Indeed, buying a franchise is a massive commitment and one you should only venture into when you have adequate information. Before you sign the franchise agreement, you should follow this simple process to guarantee you are making the right decision.
Check if Franchising Is Right for You
Truth be told, the franchise business model isn’t for everyone, so you carry out a self-evaluation early on. This will ensure you don’t waste your time pursuing a career that isn’t right for you.
Also do not forget that a franchise agreement is a legal document and once it is signed, you’ll be expected to run your business according to the franchisor’s system. Ensure you ask yourself some vital questions to note whether you have the attributes necessary to be a successful franchisee:
- Are you comfortable adhering to someone else’s rules to uphold consistency in the brand?
- Do you concur with the fact that the franchisor may not approve any changes and improvements that you suggest for your franchise?
- Are you willing to learn from the franchisor and take up their advice and guidance when it is given?
If you don’t have issues with the above questions, then you are perfectly suited to become a franchisee. If, however, you find it quite challenging to adhere to rules, have a strong entrepreneurial spirit, or just want to do things your way, then franchising isn’t really for you.
Find Car Leasing Franchises That Suit Your Needs
With numerous franchise brands currently in the UK car leasing space, this is the time to analyze your options and pick one that suits your needs. You can begin by making a list of brands in the car leasing space that interest you. Only go for brands you are passionate about and ones you think will align with your skillset or companies that offer flexible working arrangements if you need them.
One very exciting thing about franchising in this sector is that you don’t really need experience or expertise in car leasing or renting. It also entails that you can start up your car leasing business without investing time to gain apprenticeships, university courses, or vocational certificates.
Also when making your decisions, do not let things like the cost of the franchise fee or the percentage of the ongoing royalty fee cloud your judgment. Indeed, you want a franchise that gives you the platform to achieve a good income and also provides a positive return on your investment, but this shouldn’t be the primary reason for picking a franchise.
If you’ve settled for an opportunity to invest based on whether you can afford the franchise fee, then you may not remain motivated in the long run. This could mean that you will struggle to achieve success even if the franchise fee is one of the most affordable in the market.
Evaluate Each Franchise Opportunity
This is the perfect time to begin your due diligence with each franchise on your list. Note that you can only buy a franchise with complete confidence if you have extensively researched it. Here are a few steps to consider when performing your due diligence:
- Check out franchise websites: A good number of franchises have web pages that list all the necessary information about their franchise opportunities on offer. Note that this information can be very useful especially when you are comparing one franchise to another. You can also ask for a franchise brochure and register your interest via the website so that a member of the recruitment team can reach out to you.
- Attend a Discovery Day: As long as your initial conversation with representatives from the franchise goes well, you should expect an invitation to attend a Discovery Day. The Discovery Day usually holds at the franchise’s head office and offers you the opportunity to meet with the franchisor. The franchisor will use that opportunity to evaluate you, and you should also use Discovery Day to decide whether you are a good fit for the franchise culture.
- Consult existing franchisees: It is also important you reach out to existing franchisees from within the network you are considering. Request the contact details of franchisees from the franchisor. If the franchisor declines to provide this information or tries to handpick franchisees for you, consider this a red flag.
Leverage the Expertise Of Franchise Professionals
After you must have evaluated all franchise options on your list and you are happy that you’ve found one that is a perfect fit for you, your next step will be to consult an experienced franchise solicitor. A franchise solicitor will help you to understand and negotiate changes in the franchise agreement if you want to.
Remember that the franchise agreement is a legally binding contract that can be quite daunting to get out of after signing the dotted line. Owing to that, you must understand everything in the agreement before you sign.
Put Together Your Business Plan
Have it in mind that every franchise unit is different, and you will want to explicitly state your ideas and objectives before you start taking action.
Aside from helping you get your head around the unit and note any potential issues, it is very necessary if you intend to secure funding from an official lender. When putting together your business plan, ensure you include an overview of the business, information on your chosen location and workforce, market research findings, and financial projections.
Also do the math to know how much you need to invest in total, what your regular outgoings will be and when you expect to break even. Don’t forget to add information about how the unit will be arranged and managed, under the franchisor’s business model.
If you are looking to turn your love of cars into a business venture, know that there are numerous opportunities for you to get involved. Truth be told, you don’t even need experience in the automotive sector to be a highly profitable car leasing franchisee.
As long as you are eager, business-oriented, and committed to the brand you join, you are definitely on the path to achieving success. However, do not be tempted to cut corners to speed things up, as you could end up regretting it further down the line. Ensure to go through each step with caution, as this will give you time to grow your confidence and also save up more capital.