Black Horse launches lease finance
07 August 2011
Auto retail finance provider, Black Horse, has launched two contract hire products that will offer retail partners the opportunity to supply cars to both private and business customers on a fixed cost, monthly rental basis. It is believed to be the first non-manufacturer retail finance provider to enter this growing sector of the market.
The move follows the lead of several captive finance houses, including Ford, Vauxhall and Peugeot Finance, which have launched monthly rental products.
The two new products – Personal Contract Hire (PCH) and Contract Hire – have been developed in collaboration with Black Horse’s sister business Lex Autolease, which is the UK’s largest fleet operator and a specialist in contract hire.
Black Horse said the products had been developed in response to feed back from retailers and offer customers, individuals or businesses, the opportunity of a fixed-cost, flexible-term, low-risk rental agreement that can be easily arranged with dealerships.
Once the customer has picked a vehicle, they agree a maximum annual mileage with the supplying dealership as well as the length of the agreement (two to five years) and then pay a fixed monthly amount to suit their budget. Road tax is included and customers can also opt for a maintenance package add-on. At the end of the agreement they return the car.
Chris Sutton, Black Horse managing director, said: “It’s been clear for some time now that dealers and their customers have been crying out for a flexible and hassle-free rental product where the costs are fixed which very few of our competitors or car manufacturers currently offer.
“The change in the market place has seen interest grow towards the rental model which is, of course, the norm in the US market. Tapping into the vast knowledge and experience of Lex Autolease has enabled us to come up with a product that will truly have a positive impact for dealers and customers.
“As we already have a relationship with most large UK auto retailers, they will have quick and easy access to this product without having to look elsewhere.”