HSBC: no more contract hire for your vans
HSBC winds down Vehicle Finance arm
SMALL businesses using HSBC bank facilities will no longer be able to use contract hire for their business vans.
The bank has ended its Vehicle Finance arm that provided contract hire facilities to business van managers.
HSBC said any existing Vehicle Finance customers would be migrated to Lex Autolease, a subsidiary of banking rival Lloyds, which has recently performed the bank end administration of Vehicle Finance contract hire.
In 2005, HSBC outsourced the administration of its Vehicle Finance business to leasing company Lex (part of HBOS at the time) and set up a referral agreement. Following subsequent mergers and takeovers, Lex now forms part of the Lloyds Banking Group.
HSBC said the referral agreement was not meeting the expectations of either Lloyds or HSBC so the decision was taken mutually to end it.
However, HSBC said other forms of finance to purchase business vans, such as loans, would continue to be available from the bank. It is also still providing specialist finance for the purchase of vans and heavy goods vehicles.
