Lee Jones, managing director of Kew Vehicle Leasing: transparency for customers
Kew Vehicle Leasing has become the first leasing broker to provide transparency on the amount of finance commission we receive on all regulated Personal Contract Hire (PCH) agreements.
We are taking this lead because of an increased desire for openness in dealing with customers requesting a personal leasing deal.
This is especially the case since finance brokers are under investigation by the Financial Conduct Authority (FCA) about the amount of commission paid.
While Kew Vehicle Leasing is a leasing broker and not a car finance broker, we believe this bold step will distance us further from those finance brokers subject to FCA scrutiny.
Lee Jones, the managing director of Kew Vehicle Leasing, says:
“It’s a significant step for us to be first to disclose commissions. We are leading the way in the leasing broker market.
“If you look at the way Independent Financial Advisers work - disclosing the lender and the amount of commission payable on, say, a mortgage quotation - it is made quite clear the amount being paid for the service.
“I don’t see leasing brokers being any different - why we shouldn’t provide the same level of transparency? More to the point, I suspect our customers will be surprised at the level of commissions, which are not in the thousands of pounds that they often assume. On average it is 1-2% of the vehicle P11D value.
“I hope that it will also demonstrate the remarkable value leasing brokers provide. We work with multiple manufacturers and dealer groups to ensure the best vehicle discount terms, service and lead times for customers, before managing the credit application on their behalf along with vehicle delivery and in-life support where required. It adds up to exceptional value for money.”
You can find the commission disclosure and vehicle funding partner clearly stated on all Kew Vehicle orders.
“Of course, as a Kew Vehicle Leasing customer you can ask about commission payments at any stage of the vehicle acquisition process,” Jones adds.
“Treating customers fairly is at the heart of FCA regulation. We strive to do this at every stage of the process - and being the first leasing broker to disclose commission is another step towards assisting the customer in a fair and transparent manner.”
4th of February 2020