Description

The global private vehicle leasing industry is experiencing positive growth, mainly due to robust growth in the Northern and Western parts of Europe. Retail car registrations are expected to grow 2.4% in 2019, mainly driven by BRICS and APAC markets. A positive macroeconomic outlook and the government’s expansionary policies are the main driving factors behind the retail growth. Increasing vehicle costs, interest rates, and uncertainty in car policies are top growth drivers for private leasing. Changing consumer preference towards a hassle-free usership experience over car ownership is another driver. Additionally, increasing scope of vehicles powered by alternative powertrains brings in high residual risks, where leasing proves to a viable car finance option.

Private leasing is seen as a solution to the growing number of challenges faced by company car users and credit buyers. Amongst others, these include challenges associated with vehicle maintenance, insurance claims and, more importantly, subsidiary claims handling. This study sheds light on the market size across passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales/parc data for the retail market, operational lease, and financial lease of private vehicles. The different models of private vehicle leasing are discussed in detail, with a focus on the actual development and the growth potential of financial lease, operational lease, and outright purchase.

The analysis takes into account historical data and current market conditions and insights and opinions from market participants to provide 2019 outlook on growth opportunities. In addition to market data (PV and LCV) for the new registrations and portfolio, the study provides insights on different providers of private leasing service, with focus on their portfolio and sales strategies. The evolution of any industry depends on factors such as transformational trends that are linked to the macroeconomic factors of the region and the emerging business models that reflect innovation in mobility solutions, such as rental, car sharing, integrated mobility, and alternative powertrain. The study covers these evolutionary trends that are expected to shape the market. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives that aid in their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space (region-specific) and offers a detailed account on the key trends, market overview, and outlook.