Macquarie invests in short-term leasing sector
Australian finance house, Macquarie Group, has made a £1.2million (€1.38m) investment in the UK car leasing company, XL Group.
XL specialises in short-term contracts for executive and supercars, such as Aston Martins, BMWs, Jaguars, Land Rovers (pictured above), Lamborghinis, Mercedes-Benz and Porsches. It has over 700 vehicles on its fleet.
The new finance will support XL’s expansion into the UK mobility and specialist vehicle finance sector. XL focuses on contracts of six to 18 months for drivers who want greater flexibility than traditional longer-term leasing contracts can offer. These short-term arrangements allow customers to react swiftly to taxation, environmental and legislative changes, said XL.
The company’s chairman, Steve Hampson, said, “We are looking to secure additional avenues into market in early 2019 and aiming to bring the numbers of cars on lease to over 5,000 in the shortest timeframe possible.”
Macquarie has an international portfolio of over 600,000 vehicles and had been looking to increase its involvement in ‘car subscription’ services, which it said have the potential to disrupt traditional vehicle funding.
Julian Liddy, Macquarie’s regional head of asset finance in EMEA, said, “Having become a leading provider of vehicle finance in Australia, we are now looking to selectively expand the business into new markets and saw great potential to partner with XL in the UK. A key element of our vehicle finance strategy is based on the migration of customers from a ‘finance to own’ to a ‘finance to return’ model which XL already operates through its short-term contracts – and which we believe could be deployed across similar markets.”