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Bagilagai
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Avelease
Formed in 1992, Avelease is an independent finance broker with 85% of its business devoted to hire purchase: the remainder is generated by finance lease schemes, "Buying a truck through a manufacturer's finance department is little like purchasing goods through a high-street storethey offer little flexibility," says Avelease director Nick Watts, "Brand loyalty is very important to manufacturers, so their finance departments will offer product-focused deals to ensure customers remain loyal."
He asserts that manufacturers prefer to work with cash-rich customers, while some independents specialise in financing higher risk businesses: "The situation with independent financiers is that we do not compete head-on with the major manufacturers,' he adds.
"Buying through independents is definitely not a poor man's way of purchasing a truck. One of our specialities is to help start-up businesses finance their first truck."
In terms of interest rates Avelease considers itself to be little different from manufacturers' finance departments. As a finance provider Avelease lends capital for truck purchase, leaving it up to customers to invest in their chosen marques.
In recent years, he believes, independent
TRUCK Pinta
and in-house finance ompanies alike have had to dapt their packages as ustomers invest in newer ehicles. At the same time, atts says both camps have ad to compete with a rowing number of secondhand dealers selling high quality used vehicles.
"We tend not to promote the gloss like some of the in-house financiers do to encourage brand loyalty," he says. "We've seen schemes advertising 3.4% APR and even 0% finance. They can do this by teaming up with finance departments to gain more profit from the vehicle rather than from the product."
Watts refers to cases where manufacturers have quoted such low APR rates that he believes they couldn't make a prof it he suggests many of these deals are "supported" in that low APRs are offset by a higher selling price on the vehicle. He cites a Swedish manufacturer as offering 0% APR on a particular model, which brought in a sizeable chunk of business.
Like all-makes parts suppliers, Watts believes that the independents have an edge over in-house manufacturers sourcing finance for mixed fleet operators.