Car Lease Comparison v Leaseloco

When we first entered the Car Leasing market in 2007, everyone was searching for cheap car leasing deals.  Manufacturer finance for a car on contract hire was just starting to become available.  Not many lease cars were registered to manufacturer funders such as VWFS.  Fax machines buzzed with page after page of car lease deals.

Cheap Car Leasing

Personal contract hire wasn’t widely known and was never offered in a car showroom, therefore customers would take to the net to search for lease car deals and often find themselves on car comparison websites.  Back then the largest was contract hire and leasing, which rebranded to just leasing several years later.  Now there’s more websites that allow you to compare lease deals from several brokers such as leaseloco and Whatcar which only permit dealer direct deals.  Now back in 2007, you could advertise your offers for around £250 per month, but now advertising portals request around £600-1,000 per month or opt to charge per enquiry at around £30 per lead and they’re not even qualified leads.  With several lease car deal comparison sites to choose from along with other forms of advertising routes to pay for such as e-mail marketing, google adwords etc, it’s no surprise that you’ll find that many providers have chosen not to appear on these lease car advertising portals.

Now since the launch of leaseloco in 2018, they’ve since added a Van section and introduced a unique algorithm that tracks the price of that vehicle, but it will only track the price of that vehicle on their site.  Their competitor has since introduced a similar car value measure.  Now if their Brokers advertise on say 2 of the comparison sites, as well as e-mail marketing, google adwords then pay monthly for a CMS or website management system each month, before you even look at the usual overheads of running a business such as staff, utilities, rent, they could have an advertising bill of £5,000+ and that’s a conservative estimate.  Can they really offer a car on lease cheap?  This is one of the main reasons why Direct Line took the stance to never appear on a comparison website years ago and it seems to be working for them.

Who are leaseloco?

leaseloco entered the lease car comparison market in 2018, they've done well to create brand awareness,a great way they done this was via TV advertisements but once again this comes with incredible costs.  Their income needs to support their advertising costs.

The latest addition to this market is Autotrader lease, with another site to dilute the market.  If a main dealer or broker pays to advertise on each portal, how is it possible for them to offer a car on contract hire for a cheap price?