AG and Arval are joining forces to launch an autolease solution for private individuals
They are setting up a pilot project in cooperation with the brokers.
Until a few years ago a lease car was reserved for company staff or executives. But leasing for private individuals has gained ground every year since 2015. This demonstrates that attitudes are changing and that an ever greater number of people consider it more important to be able to use a car than to own one. AG and Arval, both leaders in their respective markets, are aware of this growing need among their clients. From now on, they are therefore combining their forces, their expertise and their products to launch a pilot project, with the support of brokers, under the name Go4lease, an all-in private leasing solution for new cars.
Private lease market on the up
The trend was already identified by a study conducted by Insites on behalf of AG in 2019: Four in ten respondents who wanted to buy a car without a personal contribution were prepared to opt for a leasing arrangement. The market in Belgium is growing every year (from 1,500 vehicles in 2015 to 17,000 in 2019!). Leasing has its advantages ... The arrangement is similar to an all-in rental contract: clients can quickly acquire a new car by paying a monthly amount under a contract with a fixed term and a fixed number of kilometres. Very attractive to motorists who prefer use over ownership.
What persuades clients to opt for private leasing 'Firstly, the budget. They don't need to cough up a large sum of money and only pay for the value of the car in use. Secondly, there's peace of mind. Users pay a fixed amount per month that covers the financing of the car, but also taxes, insurance, maintenance, repairs, tyre replacement and so on. So there are never any unpleasant surprises, and users know in advance what their outlay will be to use their car. Finally, the rules change so often in the area of fuel consumption, CO2 standards, resale, etc. that a lease contract offers clients both freedom and assurance: they enjoy a new car that they can replace every 4 years, which offers them a guarantee of always meeting applicable standards,' explains Laurent Loncke, managing director Arval Belgium.
Principle of Go4Lease
Because more and more Belgian motorists are opting for leasing, insurance is essential in the acquisition of a vehicle and AG wants to play a social role in the mobility of tomorrow, the insurance company has decided, together with Arval Belgium, a specialist in multi-brand leasing, to offer an all-in private lease arrangement through its preferred partners, the brokers. In practical terms, clients can take out an operational lease with Arval (choice of a vehicle at a competitive rental price) and the necessary insurance with AG (mandatory and supplementary insurance) at the same time. All done through a broker.
'Thanks to this innovative private lease solution, the brokers, who are traditionally close to the clients, gain an extra asset and retain their key role as insurance adviser', says Edwin Klaps, Managing Director of AG.
Pilot project with the brokers
AG has started a pilot project with around fifty brokers across the whole of Belgium. 'Arval and we can test this emerging market and see how the brokers, who are normally not involved until later in the purchasing process for a vehicle, position themselves with their clients. We put their role as adviser at the centre. This is a totally new approach to the lease market', Klaps explains. Depending on the results of this pilot project, AG and Arval will be able to adapt their product for a broad launch later this year.