Rivervale CEO Vince Pemberton recently joined the Car Dealer Podcast to discuss the changing relationship between leasing brokers, manufacturers and dealerships, as well as the growing influence of electric vehicles and new Chinese car brands.
Hosted by Car Dealer Magazine’s James Baggott and John Bowman, the podcast brings together some of the motor industry’s most experienced voices to discuss the biggest automotive stories of the week.
Vince was invited to provide a perspective from the vehicle leasing sector, drawing on more than four decades of experience across dealerships, fleet sales and leasing.
The hosts were particularly interested in understanding how leasing brokers are helping new manufacturers enter the UK market, why some electric and Chinese vehicles are being offered at such competitive monthly prices, and how customer attitudes towards newer brands are changing.
Listen to the Podcast
You can listen to the full episode of the Car Dealer Podcast featuring Vince Pemberton on Spotify or Apple Podcasts.
A lifetime in the motor industry
During the podcast, Vince explained that his connection with the motor trade stretches back several generations.
His father, grandfather and great-grandfather all worked within the industry, with his great-grandfather believed to have operated one of London’s first American car franchises during the 1920s.
“The motor trade is in my blood, in my DNA,” Vince explained.
As a child, Vince’s father encouraged him to learn about vehicle values by giving him previous editions of Glass’s Guide. He would study the buying and selling prices before applying them to his own collection of toy cars.
After starting his career in the used car sector, Vince moved into fleet sales with Evans Halshaw before joining Rivervale, which was then a Mercedes-Benz dealership in Brighton.
When the dealership lost its Mercedes-Benz franchise in 2000, Vince was encouraged by a contact at Lombard to establish his own vehicle leasing brokerage.
He founded the business in May 2001 and later became part of Rivervale again in January 2009.
Why leasing brokers have become an important route to market
One of the main themes of the conversation was the changing relationship between vehicle manufacturers, dealerships and leasing brokers.
Vince explained that leasing brokers were once viewed with some suspicion by parts of the traditional dealer network. Manufacturers often believed their own dealerships should be managing these customers directly.
However, leasing brokers could offer something that a single-franchise dealership could not: access to vehicles from multiple manufacturers and funding providers.
This allowed a broker to sit down with a small or medium-sized business, understand the needs of its entire fleet and source suitable vehicles for different employees, budgets and requirements.
Today, that relationship has changed considerably.
Rivervale expects to deliver between 5,000 and 6,000 vehicles through its leasing operation this year, while some of the largest leasing businesses are handling tens of thousands of vehicles annually.
“I think what you’re seeing is that certainly the OEMs have started to wake up to, ‘We’ve got to work with these guys,’” Vince said.
He added that dealerships increasingly recognise the benefits of working alongside established leasing brokers rather than viewing them solely as competitors.
Chinese manufacturers are driving competition
The growth of Chinese vehicle manufacturers was one of the main reasons Car Dealer wanted Vince to appear on the podcast.
Brands including BYD, Chery and Geely are introducing an expanding range of vehicles to the UK, often supported by highly competitive leasing offers.
“The broker world likes an oversupply position,” Vince explained.
When manufacturers have vehicles available and want to establish themselves quickly, they can create attractive campaigns that allow leasing brokers to offer extremely competitive monthly rentals.
Vince said some of the offers appearing on the Rivervale website have been remarkable, with certain new vehicles available for less than £200 per month.
However, he stressed that the success of these brands is not only about price.
“They’re bringing product in that is affordable. It’s driving the industry forward.”
Many of the latest Chinese vehicles combine extensive standard equipment, strong electric ranges, rapid charging technology and increasingly premium interiors.
Vince highlighted BYD, Chery and Geely as some of the front runners, while also pointing to the technology being developed for premium brands such as Denza.
Customer awareness is also increasing rapidly.
As more vehicles appear on UK roads, customers are becoming familiar with the names and talking about them with friends, family and colleagues. Rivervale is already seeing orders from customers who are prepared to consider these new entrants alongside established European manufacturers.
The increased competition is also encouraging traditional manufacturers to respond with stronger products and sharper pricing.
Vince questioned whether customers would continue to choose a newer Chinese brand when a comparable Audi, Volkswagen or other established model was available for similar money. The answer will become clearer as Rivervale continues to analyse enquiry, quotation and order data.
Electric vehicles are becoming part of everyday motoring
Vince has driven a fully electric vehicle since 2019 and spoke openly about both the benefits of EVs and the adjustments drivers may initially need to make.
Electric vehicles deliver power and performance differently from petrol or diesel cars, without the same engine noise, vibration or mechanical sensation.
However, concerns surrounding range and charging are beginning to reduce as vehicle technology and public understanding improve.
Vince identified three of the main considerations for customers looking at an electric car:
- Driving range
- Access to charging, particularly at home
- Affordability
Newer electric vehicles are increasingly addressing all three.
Many now offer more than 300 miles of claimed range, while drivers are becoming more familiar with planning charging stops during longer journeys.
Rivervale has also seen a significant rise in personal customers choosing electric cars.
EV demand was initially driven heavily by business users because of favourable benefit-in-kind taxation. However, Vince explained that personal contract hire customers are now ordering electric cars every day.
For households with two vehicles, an electric car can also make sense as the second vehicle, particularly where most journeys are local and home charging is available.
Leasing is an increasingly competitive industry
The podcast also explored how competitive the leasing sector has become.
Vince estimated that leasing brokers could account for between 400,000 and 500,000 UK vehicle registrations each year, although the exact total is difficult to calculate because not every broker reports figures through the BVRLA.
Rivervale works with 12 different leasing and finance providers. This allows the business to compare prices across different contract lengths, mileages and initial rental options.
A two-year agreement can occasionally be more competitive than a three or four-year contract, giving customers the opportunity to change their vehicle more frequently without being tied into a longer arrangement.
“You’ve got to be at the forefront with your marketing. You’ve got to be agile,” Vince said.
He argued that the marketing produced by many of the UK’s leading leasing brokers is now ahead of that produced by some traditional dealer groups.
The ability to respond quickly to a new manufacturer campaign, identify the most competitive funding option and communicate it to customers is one of the sector’s biggest strengths.
Compliance and motor finance compensation
During the second half of the podcast, Vince was asked for his view on the ongoing motor finance compensation debate.
He explained that BVRLA leasing brokers are subject to regular auditing and have continually adapted their customer documentation as regulatory guidance has changed.
Rivervale introduced additional product suitability and affordability documents as far back as 2015. These helped customers understand the type of agreement they were entering into, including the important fact that a contract hire customer does not own the vehicle at the end of the agreement.
Vince said the continuing uncertainty surrounding motor finance compensation was difficult for the industry and that he would prefer to see a fair and sensible conclusion reached.
“I personally would like to see a line drawn under it, a sensible outcome.”
While recognising the significant sums of money involved, he said the continuing delays were leaving both businesses and consumers frustrated.
An optimistic outlook for the motor industry
At the end of the episode, Vince was asked to choose his favourite news story discussed by the hosts.
He selected the appointment of former Peugeot and Citroën CEO Linda Jackson as a non-executive director at Hendy Group.
Vince described himself as an eternal optimist and welcomed the experience and knowledge that Jackson would bring to the dealership group.
“In our game, in the motor industry, you’ve got to get up being optimistic every day.”
That optimism was reflected throughout the conversation.
While the vehicle market continues to face challenges around regulation, electrification and changing consumer behaviour, Vince believes increased competition is helping to drive the industry forward.
New manufacturers are introducing better technology and more choice, established brands are responding with stronger offers, and leasing brokers are becoming an increasingly important connection between manufacturers, dealerships and customers.
