‘No compromise on customer service’ as Marshall Leasing doubles in size

Since its acquisition by Bank of Ireland UK in 2017, Marshall Leasing has doubled in size and jumped 10 places up the FN50 to 17th. Early this year, it surpassed 12,000 funded vehicles, adding another couple of hundred units to the figure reported just a couple of months prior for the 2023 FN50.

The appetite for growth marks a dramatic change of direction for Marshall Leasing which, as a non-core division of the Marshall Motor Group, spent much of the previous decade contentedly ebbing and flowing around the 6,000-vehicle mark.

Now sitting within Northridge Finance, Bank of Ireland UK’s car and asset finance arm, Marshall Leasing’s growth has been fuelled entirely through organic contract wins and securing a greater proportion of business with existing customers.

Greg McDowell (pictured), appointed managing director in May 2021 following the retirement of Fleet News Hall of Famer Peter Cakebread, leapt aboard a business that was already gathering pace and has overseen the lion’s share of the growth during his three-year tenure.

His aspiration is to continue the trajectory, which he calmly describes as a “measured” strategy, with an ambition to hit 15,000 vehicles within the next two or three years, split 70:30 cars-to-vans.

Marshall’s overriding priority, though, is not to relentlessly pursue growth; it’s to focus on “customer service and having loyal and engaged colleagues who will enable us to develop and improve that service”, McDowell says.

“All of our growth has been in line with our objectives of customer retention and a focus on service. This is the core DNA of the business,” he adds.

He illustrates this point by highlighting that Marshall’s top 10 customers have been with the business on average for nine-to-10 years.

The addition of new customers and more funded vehicles has been matched by a corresponding rise in employee numbers to ensure no deterioration in Marshall Leasing’s renowned levels of service.

“Our new recruits have bought into our family ethos that has been in the business for years,” McDowell says.

New head office

Marshall Leasing will be relocating its head office this year from its 18th century spiral staircased home neighbouring the former county gaol on a narrow backstreet in Huntingdon, Cambridgeshire, to modern open premises on an accessible nearby business park.

McDowell calls it an “investment to be proud of” resulting in a much-improved environment for staff and visiting clients.

Further investment is underway in new IT systems, “the spine of the business”, which will enable staff to deliver “outstanding customer service” and well as facilitate the release of new products and services.

With cost of business rising, the commitment (and deep pockets) of Bank of Ireland has been a crucial factor in both the new offices and IT systems.

“They are encouraging us to grow and are willing to make the necessary investment in people, property and systems – they are putting capital to use,” McDowell says.

Marshall Leasing is also expanding its products and services. In 2018, it entered the minibus sector and now funds more than 500 vehicles, predominantly with schools, charities and sports clubs, managed by a team of three specialists.

A year later it started targeting credit hire and bodyshop business, with significant success, and it also has plans to re-enter the public sector by joining the vehicle lease and fleet management framework.

It is now working with Northridge Finance on a personal contract hire product, learning from its parent company’s regulated business serving consumers. A launch is likely later this year.

In addition, it is looking to re-engineer its salary sacrifice offering over the next 12 months to make it scalable and broaden its appeal.

However, its core business will remain the funding of assets and fleet management services in the fleet market, serving a customer base ranging from fewer than 10 vehicles to those with several thousand.

“We want to be able to serve that wide breadth,” McDowell says. “But whoever we win, the fit has to be right. We have to be able to provide the right service level. We won’t take on a business if we can’t do this.”

He adds: “We have seen a greater reliance on leasing companies to provide additional services which plays to our strengths. Contract hire with fleet management will be a greater theme driven by consultation on electrification and in-life services. That is at the heart of what we do.”

Vehicle supply improves, parts still an issue

Vehicle supply and service, maintenance and repair (SMR) have both been challenges but Marshall Leasing is seeing an unlocking of order books. Last year, it delivered around 4,000 vehicles, which was 20% up on 2022.

However, while vehicle availability has improved, SMR continues to be problematic with longer off-road times caused by lingering parts supply issues. McDowell expects this to persist throughout the course of 2024.

It has underlined the “critically important” requirement for constant communication, which has been further reinforced by the need to support customers through their electric transition.

Alternative fuels account for around 35% of Marshall Leasing’s car fleet, a proportion which has “accelerated” over the past couple of years.

The ZEV Mandate, which this year imposed annually tightening full electric registration targets on manufacturers, will be the catalyst for a “step change within our fleet”, predicts McDowell.

“Its implementation, and the increase in BEV models and improving infrastructure, will see a more material move in the market, both leasing and retail,” he says.

“But it still has to be customer-led: they have to be confident in the product and the infrastructure which have to work from a business and driver perspective.”

Marshall Leasing is ready to embrace the influx of new brands from China and the US and has seen a rising level of acceptance among customers in the models coming from outside the traditional fleet manufacturers.

“They are enquiring about these newer brands,” McDowell says.

He reports slower interest in broader mobility solutions, though. Marshall’s standpoint is to work with partners who can provide scale, such as facilitating rental to support train journeys.

“It will evolve; Covid paused it and there are complexities for leasing companies getting involved in standalone subscriptions models,” McDowell says.

“However, our time and effort is better served in achieving our growth aspirations and focusing on customer service.”