Vauxhall Finance has launched contract hire offers for both individuals and businesses, as part of a plan to increase finance penetration rates to a third of Vauxhall vehicles in the UK by 2020.
The personal contract hire (PCH) offer covers all new Vauxhall consumer cars, while business contract hire (BCH) has been made available for light commercial vehicles (LCVs) as well as cars. Servicing packages can also be included as part of the contract.
Vauxhall Finance said the decision to expand in the contract hire direction arose from seeing a high number of customers, particularly SME business ones, who opted for a return or upgrade over a purchase at the end of the lease.
It is the first major UK announcement from the captive finance house following the joint acquisition of its parent Opel Vauxhall Finance (OVF) by Banque PSA and BNP Paribas, as part of the German carmaker’s sale from GM to PSA.
Simon Kington, managing director of Vauxhall Finance, said: “This product launch is a further step for Vauxhall Finance to become a full captive for Vauxhall, which is part of our new strategic plan for profitable and sustainable growth.
OVF had hinted to B2B offers over the last few months, as a way of growing its presence in the motor finance market both in the UK and abroad.
Speaking to Motor Finance in January, OVF chief executive Alexandre Sorel said: “Today we only do HP and PCP, but this [B2B] has been an important part of the market for some years now … This is the main chunk of the market that we are missing today in terms of offers.
“It is critical for us to be there to sustain the brand. It is an area of business where we should be.”
Following the PSA/BNP Paribas acquisition, OVF revealed plans to introduce B2C and B2B offers to cover 90% of Opel Vauxhall’s European markets of operations.
“The offers will vary from one market to another, depending on the need,” Sorel said in January.