How a Car Leasing Broker Works | Motorlet Guide

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 car leasing broker acts as a middleman between customers, leasing companies, and dealerships. They source vehicles from various suppliers, often at a discount, and offer competitive prices using multiple leasing companies to get the best deal. Brokers also provide guidance and support throughout the leasing process, ensuring a smooth and enjoyable experience.

Benefits of Using a Leasing Broker

1. Dealership Network & Supply

Brokers partner with hundreds of dealers across the UK. This extensive network allows them to access a larger stock of vehicles and find the best deals on your desired car. For example, if an Audi dealer in Glasgow has a special offer on an Audi A3 but you live in London, a broker can secure this deal for you, including free delivery.

A broker also develops their relationships with dealerships, which leads to better discounts. Where a broker is ordering hundreds, if not thousands of cars and you are only ordering one or two, the chances are you will not get as much discount.

It’s not just about price, though. By having a large number of dealerships on their books, it means better access to stock vehicles. If you need a specific car quickly, you’ll likely have an easier time finding it by using a broker.

2. Leasing Companies

Leasing brokers tend to work with several leasing companies, very similar to how a mortgage broker works where you get multiple mortgage quotes for the same house.

Once you have found a vehicle that you want to lease, let's say a Volkswagen Golf, you speak to your local dealer and get a lease quote through Volkswagen Financial Services. That is usually it, as most dealerships don't work with other leasing companies.

A leasing broker works with several leasing companies (including the dealer's leasing company, in this case, Volkswagen Financial Services), which means they can give you more quotes to consider and most of the time, there'll be one that is cheaper!

Most lease companies negotiate directly with manufacturers. For example, a lease company might secure a bulk deal for 500 Volkswagen Golfs and then offer exceptional lease deals on these cars. These deals often sell out quickly, and a broker can keep you informed about such short-term offers.

Like mortgages with different banks, each has its benefits and disadvantages, and the same goes for leasing companies. You may be inclined to go for the cheapest quote, but you might want to consider things like excess mileage charges. You might save £5 per month going with the cheapest leasing company, but if their excess mileage charge is twice as much, would you be better off going with the second cheapest leasing company with the much lower excess mileage charge?

3. One-off lease deals

Leasing brokers are usually a go-to for dealerships and leasing companies to shift old stock, pre-reg cars, or cancelled orders. If they have old stock sitting around and need to sell it to hit their targets, they might speak to a broker and offer a really good discount to get a quick sale. Some of these deals are so good, that by the time they are on the website, they've sold out. If you have a relationship with a leasing broker, they can inform you of these deals so you don't miss out!

When an order is cancelled, it usually means the next person in line is going to get a good phone call. Leasing brokers often have a list of clients who are after a very specific (and usually cheap) lease deal. When a high-demand order is cancelled, it's offered to the clients on the list. Not on the list? You'll never know about it.

Pre-reg deals are also very common. This is where a dealership will register a batch of vehicles to hit a target. Once registered, they have to get them sold - quickly. This is where you might see deals on cars that don't have the newest registration plate. They are still brand new and you'll still be the first driver (other than the person delivering, it!), they've just been pre-registered. I wouldn't mind having the previous registration plate on my new car if it meant a cheaper monthly rental! 

4. All in one place

One of the key benefits of using a car leasing broker is that they can provide you with multiple lease quotes from various dealerships and leasing companies without you having to visit each one individually. This saves you a lot of time and effort. Instead of spending hours contacting different dealerships or browsing multiple websites for lease offers, you can simply provide your requirements to the broker, and they will do the legwork for you.

It also means they can make recommendations or make you aware of alternatives that might offer much better value. A leasing broker is there to absorb all of your wants and needs, and then provide you with all of the relevant information and offers to make a decision.

Being able to supply any brand of vehicle also makes for non-biased information. Leasing brokers are not tied to any particular brand, so you'll get honest information on offers that work for you.

Conclusion

Using a car leasing broker can save you time, money, and hassle. They offer access to a wide range of vehicles and deals, provide multiple quotes, and offer personalised support throughout the leasing process.