Citygate Holdings has officially launched Citygate Leasing, a new venture aimed at providing vehicle leasing solutions to both corporate and retail customers. With the recent approval from the Financial Conduct Authority (FCA), the company is set to make a significant impact in the UK leasing market, particularly in London and the Home Counties.
Key takeaways
- Citygate Leasing will operate as a leasing broker initially, focusing on personal and business contract hire.
- The company aims to attract new corporate clients while also catering to retail customers.
- A strong emphasis will be placed on electric vehicle leasing options as part of employee benefits.
- Citygate has a robust network of dealer groups for vehicle procurement and processing.
Overview of Citygate Leasing
Citygate Leasing is designed to meet the growing demand for flexible and cost-effective vehicle solutions. The company will initially focus on new vehicles, but plans are in place to explore options for secondary leasing of approved used vehicles in the future. This strategic move aligns with the increasing popularity of leasing among consumers seeking convenience and affordability.
Business model and offerings
Citygate Leasing will primarily function as a broker, collaborating with a panel of funding partners to provide a range of leasing options:
- Personal Contract Hire (PCH): Tailored for individual customers looking for a hassle-free vehicle leasing experience.
- Business Contract Hire (BCH): Aimed at corporate clients, offering flexible leasing solutions to meet business needs.
The company is also set to introduce a salary sacrifice scheme, which allows businesses to offer electric vehicle leasing as part of their employee benefits package. This initiative not only promotes sustainability but also enhances employee satisfaction by providing access to modern, eco-friendly vehicles.
Target market and geographical focus
Citygate Leasing will primarily target the UK market, with a specific focus on London and the surrounding Home Counties. This area is synonymous with the Citygate brand, and the company aims to leverage its existing reputation to attract new corporate clients. The strategic focus on these regions is expected to facilitate rapid growth and establish a strong foothold in the competitive leasing market.
Citygate’s operational strengths
Established in 2006, Citygate operates 18 dealerships across various locations, including London, High Wycombe, and Reading. The company represents several well-known automotive brands, including Volkswagen, Škoda, and Kia, and employs over 650 staff members. This extensive network and operational capability provide Citygate Leasing with a significant advantage in vehicle ordering and processing, ensuring a seamless experience for customers.
Future outlook
As the vehicle leasing market continues to evolve, Citygate Leasing is well-positioned to adapt and grow. The company’s managing director, Greg Taylor, emphasised the importance of offering a diverse range of products and services to meet the needs of both retail and corporate customers. With the increasing trend towards leasing as a preferred option for vehicle acquisition, Citygate Leasing is set to play a pivotal role in shaping the future of vehicle leasing in the UK.
In conclusion, the launch of Citygate Leasing marks an exciting new chapter for Citygate Holdings, as it expands its service offerings and aims to meet the changing demands of consumers and businesses alike. The focus on electric vehicles and employee benefits further underscores the company’s commitment to sustainability and customer satisfaction.
Sources
- Citygate launches vehicle leasing business, Fleet News.
