Having a branded financial services arm will help provide more options for customers and improve profitability for dealers, explained Lindsay Duffield, president of Jaguar Land Rover Canada.
“The new partnership means more competitive programs for our dealers including more flexibility on terms and on low mileage and ultra-low mileage leases,” he told Canadian AutoWorld. “We will be coming out with added flexibility on multiple security deposits and single payment leases. The definition of new car is now 20,000 km up from 15,000.
The creation of Jaguar Land Rover Canada Financial Services comes from a new relationship with Scotiabank and CDLSI, Canadian Dealer Lease Services Inc.
Effective March 1, the new arrangement takes over finance and lease options for the luxury brand previously serviced by Bank of Montreal and FinancialLinx.
Duffield said the need for a new partner began after FinancialLinx became GM Financial Services Canada last spring. He insists, though, that the partnership did not end on a sour note, simply that the focus shifted to GM and business with other brands was wound down.
“They [FinancialLinx] gave us a long phase out which speaks to the good nature of our relationship,” he said. “And we still have roughly five more years with FinancialLinx as the current lease portfolios winds down.”
Now, Scotiabank will supply finance support while CDLSI handles the lease portfolio.
“We are delighted to partner with Jaguar Land Rover Canada to tailor a leasing program which will offer clients the type of personalized, high-touch customer service that’s consistent with one of the market’s premier brands,” said Alex Leman, CDLSI chairman.
That sentiment was echoed by Scotiabank, which said it was pleased to be a part of this new program to provide unique financing solutions to the automaker.
While Duffield admits the end goal is to create its own captive, with the company spending roughly £1.5 billion a year on new product development, it becomes a matter of priority.
“Now we have a complete turnkey retail plus leasing package that we’ll be able to invest in together to create more compelling financial services for our dealers and our customers. I am very excited.
“On the dealer side, they will now have one source from all of the Jaguar Land Rover programs going through Scotiabank on the retail side or CDLSI on the leasing side all going through the RouteOne portal.”
There is no specific Jaguar Land Rover-sponsored floorplan program yet, though Scotiabank does provide floorplan for a number of the brand’s dealerships.
“We have to walk before we run,” he said. “Whether we have our own captive or with this partnership, we want to extend broader financial services whether it be floorplan, insurance programs, and more. It’s certainly in our sights, it’s just a matter of priorities and timing.”