Lombard VM’s van sales manager answers questions this month in the Fleet Van hot seat.

Matt Date fact file

Name: Matt Dale
Job title: General sales manager – van sales unit
Brief career history: Qualified as a technician working in an Austin Rover dealership before working my way into the office to become a service controller. Joined Lombard at the age of 20 and have worked in various areas of the leasing side of the business: fleet controller, customer service executive, RV/SMR analyst
Favourite book: Anything by John Grisham
Favourite film: Too many to choose just one
Favourite holiday destination: Great Keppel, Australia
What three records would you take to a desert island? Carmina Burana by Carl Orff, Unfinished Sympathy by Massive Attack and Fans by Kings of Leon.

How many commercial vehicles does Lombard have on its fleet?
At the end of 2008 we had 26,500 LCVs. That means they account for around 25% of our total fleet, which underlines how important the sector is to us and the commitment we’ve made to it. In addition, we fund a number of heavier commercial vehicles.

In a nutshell, what services does Lombard offer to the UK’s van fleet operators?
A one-stop solution. From fleet strategy and consultancy to funding, identifying the right vehicles and specification, managing build, delivering a turn-key product and finally disposal. In addition we have a full suite of added-value products ranging from insurance to vehicle tracking.

How long have you been in your current job?
Ten years. I set up the van sales unit at the end of 1999 and have run it ever since. The job title has changed once or twice but, it’s still the same role.

What does your job involve?
Anything to do with vans! I’m involved in vans right across the business. The day-to-day running of the team is my main responsibility and this could be anything from attending customer meetings or signing off a final specification, through to manufacturer meetings and analysing market data. That’s what I love about the job – no two days are the same.

How has Lombard been affected by the present credit crunch, bearing in mind it is owned by the Royal Bank of Scotland?
Lombard is the UK’s largest asset finance provider, so we have very good access to funds and are actively seeking
to lend. 

We’re seeing good levels of business, because customers are realising that well-structured leasing and management solutions can not only keep their businesses moving but also save money.

What steps have you taken to fight off the effects of the recession?
We’ve increased our efforts in the SME sector, which has helped generate a 50% increase in sale-and-leaseback deals. In addition we’ve introduced two products that are ideal for the current economic situation. 

Trade Vans is an off-the-shelf range of fully-equipped vehicles for different professions. And if the specification isn’t exactly as the customer wants, we can tweak it. 

Flexi-Rental gives fleets an alternative to the long-term commitment of leasing contracts and the expense of short-term daily rental. It’s perfect for businesses experiencing uncertainty or market fluctuations, yet costs around 25% less than typical daily rental charges and only around 5% more than contract hire.

What new deals do you have for van fleet operators coming up?
We’re extending the Trade Van offering to include florists, fire protection and refrigerated vehicles, and we will shortly be launching used van contract hire. We’re also likely to be running more manufacturer campaigns with special terms for SMEs.

Despite the vast number of lease and rental deals on offer in the UK, the majority of van fleet operators still outright purchase their vehicles. Why do you think this is and what can you do to persuade them to look at the leasing option?
Some operators are scarred by leasing because of horror stories from the past. Ten years ago some leasing companies did not understand vans at all. 

Customers were receiving poor service plus big invoices for return damage and no advice on new products, let alone support with legislation. Things have moved on since then.
We understand that a van is a working tool and that a business cannot function without it. If it’s off the road it’s losing money. 

We also understand that when it is returned at the end of the lease it is not treated the same way as a car.
Leasing may not be right for every business, but we can normally find a financial product and in-life service that will benefit them. 

Right now we are in a steep economic downturn – why would a business want to have its cash tied up in depreciating assets when it can lease them, be relieved of the RV risk, have fixed monthly costs and outsource a large part of the administrative burden?

Some experts believe that the bigger leasing firms can’t offer the same level of personal service as the smaller ones. As a top 10 UK player, would you agree with this?
Beyond a certain level, size is a factor but it’s not the only one. It’s also down to whether the company has a service culture and whether it’s actually in a position to provide good service. For example, if the company is distracted by a merger, a lot of time and energy will be spent on integrating cultures and systems and service quality is inevitably a potential problem. 

We have a real opportunity right now with how the leasing market is developing – we are big enough to have access to the right vehicles at the right prices, and to extensive expertise in both funding and fleet issues, but still small enough to provide the flexibility, bespoke solutions customers need. 

We win and keep a lot of business on our ability to focus on a company’s specific needs – and with a new MD who comes from a customer service background this will only strengthen our position.

Being a larger leasing firm, are you able to support smaller operators?
We offer the same levels of specialist support whether the operator runs one van or 1,000. Lombard has created a new sales structure specifically to support SME customers.
There are 38 business finance centres around the UK with specialist staff for fleets of up to five vehicles, where customers can get quotes and have queries answered locally. 

Fleets of more than five are serviced by a field-based team. Leasing companies have often neglected SMEs, but we’re taking the business to the customer – they can even make fleet enquiries in NatWest and RBS bank branches. Finally, van SME customers get their own support from a dedicated SME business manager in the van sales unit.

The environment is becoming a hot topic in van fleet management, with more fleets wanting to ‘green up’ their operations, Can Lombard help do this and if so how?
We’ve led the way is in providing CO2 and mpg figures, which we started sourcing from Europe two years ago because they are not freely available.
There are lots of ways to help a customer be more environmentally friendly and some are very simple – like choosing the correct size of vehicle with the correct engine power. 

But we’ve also been trialling vehicles that can run on B30 biodiesel and designing the internals of vehicles so that they don’t need a roof rack, and we are currently reviewing how many customers can double-life their internal racking.

We know crystal ball gazing at present is a haphazard affair but how do you see the leasing industry developing in the next 10 years?
The fundamentals never change – RVs still move up and down and manufacturers’ prices keep increasing. 

But there is more specialisation than ever, especially in legislation and taxation, and this will continue to increase.
And of course there will be many more fuel types – diesel and other hybrids, pure electric, hydrogen and a raft of government grants and tax variances. 

Add in road charging and telematics that can report every movement of the vehicle, and you get a very complex scenario that will require an even higher level of dedicated management or professional support.

Company background

Lombard Vehicle Management (LVM) was the first leasing company to establish a dedicated van sales unit and offers a range of support for LCV customers in addition to funding. 

LCV products include Van Plus+, an in-house build management service providing customers with a bespoke product, and Trade Vans, a range of fully fitted-out vans for a variety of tradesmen. 

Lombard has also pioneered the provision of van CO2 data. Customers include major names like the AA, British Gas, BSkyB, Coffee Nation, Jewson, Ocado and Saint-Gobain. LVM is the UK’s third-largest automotive leasing business, with a fleet of almost 110,000. 

The company was voted best leasing and asset finance provider at the Business Moneyfacts Awards 2009 and was highly commended in the leasing company of the year category at the most recent Fleet Van Awards.

LVM is part of Lombard, the asset finance provider and a member of the Royal Bank of Scotland Group.