Lease Industry Contracts As Takeovers Announced

Thursday, 4. August 2011

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Alphabet is the fleet management division of BMW and a company that I have criticised for using some somewhat dodgy PCP type schemes to avoid the full legal rights that a consumer would have within a traditional PCP type scheme. The latest news is that they are expanding by taking over ING Car Lease in order to expand as a multi brand lease provider across Europe. Alphabet has been somewhat disjointed in the past with confusion as to where their loyalties lie. This move will give them greater independence and allow them to expand on their multi-brand activities already in place in the UK. From my point of view it is bad news as it takes another competitor out of the market.

The new operation, set to complete in the fourth quarter of this year, will catapult Alphabet to the third largest vehicle leasing company in the UK.

On the same subject Lombard, that has been up for sale for over a year, is reported to be in discussions with GE with a potential sale on the cards.

RBS, the owners of Lombard has been trying to reduce its non core banking business for some time and with GE gaining ground it makes a lot of sense, except to me of course although this new business may once again see Lombard move back into the broker market. So not all bad news with the removal of competition. By Graham Hill