AG and Arval Belgium launch Go4Lease

The high growth figures from our neighbouring countries and the rapid increase in our own country indicate that private lease is also becoming a success story here: as in many other areas, consumers increasingly prefer to use their cars rather than own them. As market leaders in respectively insurance and leasing, AG and Arval Belgium are joining forces to expand the offer of insurance brokers with this fast-growing activity and at the same time to valorise their expertise in insurance. In this way, both partners also want to lower the threshold to both private and business leasing, which will be especially important for the transition to electric cars.

Car leasing for personal use, also known as private leasing, is an "all-inclusive" leasing contract that allows individuals to always drive a new or recent car. Customers pay a monthly amount based on a lease contract with a fixed term and a fixed number of kilometres. A Private Lease is ideally suited for private individuals who only want to pay for the use value of the car. This way, they can replace their vehicle regularly and benefit from the services associated with the lease: extended warranty, maintenance, winter tyres, etc.

The evolution in the private leasing market is lightning fast. Whereas only seven years ago in Belgium it was still a niche product with 1,500 vehicles, its share rose to 17,000 in 2019 and 23,500 in 2021. In our neighbouring countries, the proportion of vehicles in private lease is even higher: in the Netherlands, there were 214,000 drivers driving a private lease car in 2020, and the market has increased fivefold in five years. France and the UK have almost 1.5 million of them each. It is therefore expected that this trend will also continue in Belgium.

Together with Arval Belgium, the benchmark in the leasing market, AG is launching Go4Lease, a private lease formula which it will distribute through its network of more than 4,000 brokers. A special feature of this formula is that the insurance part, which forms an important part of the overall offer, is prepared and managed by the insurance broker. In this way, the broker can optimally respond to the specific situation and needs of his client with an adapted offer, and he can make maximum use of his expertise and support in case of damage. For brokers, this new formula therefore represents an interesting addition to their activities and an optimisation of their client portfolio.

For other aspects of the leasing contract, such as the choice of car and options, maintenance and repairs, the client will deal directly with Arval Belgium. Arval Belgium's services, such as its simulation tool, call centre and repair network, are an integral part of the Go4Lease offer. Go4Lease thus combines the know-how and expertise of two of the major market players in their field.

At the same time, AG considers a formula such as Go4lease to be a welcome support for the electrification of the car fleet. After all, all studies show that many customers are willing to purchase an electric vehicle but hesitate because of a number of objections. Not only are electric cars still more expensive to buy, but there is also a widespread attitude among car owners that they are not willing to buy an electric car. Moreover, car owners are uncertain about the resale value of these vehicles and the speed at which electric models are evolving technologically.

These are all concerns that drivers with a lease contract do not need to worry about. With leasing they can already have an electric car that meets today's standards, both technically and in terms of personal needs. At the end of the contract, usually within four to five years, they can simply return their car without worrying about its residual value and replace it with an updated model if they wish.

In addition to private leases for individuals, the partnership between Arval Belgium and AG also includes a Business lease section aimed at the self-employed and SMEs. For this market segment, which includes more than 1.1 million self-employed people and 150,000 SMEs (fewer than 10 employees), the same benefits apply as for private leases: a fixed monthly cost, the expertise of their broker, a carefree switch to electric vehicles... The latter is all the more important as the electrification of the car fleet is, for the time being, still largely via company cars.

By 2021, Belgium will have approximately 300,000 hybrid and electric passenger cars, accounting for 5.1% of the total passenger car fleet. For the time being, these are mainly hybrid cars: almost 259,000 are hybrids and a good 40,000 are fully electric (BEV). The strong growth of both types of vehicles is striking: in one year's time, they have recorded growth figures of 67% for hybrid and even 70% for BEV vehicles (Statbel figures, 1 August 2021).

The most recent figures from Febiac (7 January 2022) indicate that "cars with a plug" (BEV and Plug in Hybrid together) accounted for 18.4% of the total number of new cars registered in 2021.

At Arval Belgium, BEV cars alone accounted for 12% of the total number of new cars registered in 2021 and even 20% of the number of cars ordered (a figure that anticipates the number of registrations), in both cases a fourfold increase on the 2020 figures.

"With Go4lease we actually kill two birds with one stone. On the one hand, we are supporting our brokers with a new, fast-growing activity that fits in perfectly with their core business. On the other hand, we are reinforcing a socially relevant trend towards the electrification of the vehicle fleet and the transition to softer mobility. Once again, we are emphasising our social role, our innovative capacity and our partnership with the brokerage industry in Belgium."

- Edwin Klaps, Managing Director Broker Channel & Non-Life

"Arval launched Arval Beyond at the end of 2020, a new strategy that focuses, among other things, on accelerating the electrification of our fleet, offering alternative forms of mobility and reaching a wider audience through partnerships with other companies. With Go4lease we have found a perfect formula that allows us to put our expertise at the service of the customers of AG's brokerage network. Together, we can fulfil our ambition to offer our clients sustainable and innovative mobility solutions tailored to their needs."

- Laurent Loncke, General Manager Arval Belgium