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Car Leasing Industry Is Gaining Popularity Globally!

In many parts of the world, including Europe, North America, and the Asia Pacific region, business vehicle leasing has shown to be highly efficient for a variety of businesses. So, over the last few years, the global car leasing market has grown rapidly. This blog compiles key information about the global growth of the business car leasing sector.

There was a time when the pleasure of ownership outweighed the financial burden. However, since the introduction of private and business car leasing, public perceptions have shifted significantly.

Many individuals, small to medium-sized businesses, and other businesses have switched from owning a fleet of cars to leasing because of the advantages that leasing provides. It not only allows you to upgrade to the most up-to-date automobiles with improved safety features every 3-4 years, but it also provides the convenience of a fixed EMI that includes maintenance costs. It also comes with no resale value risk, stress-free usage, maintenance services, and little or no down payments.

Individuals and businesses who do not want to be stuck with the same car for an extended length of time or who do not want to be burdened by outrageously high down payments would benefit from private and corporate vehicle leasing. The auto leasing sector in India is growing at a rapid pace, but the practice has yet to catch on in the rest of the world.

According to ALD Automotive, professionals like accountants, doctors, and small and medium businesses would fuel the car leasing market in India. This leading business vehicle leasing company even has a lease plan product ALD Pro, developed specifically for professionals. In developed markets, the leasing sector has established a significant market in nations like the United States, the United Kingdom, France, and Germany.

The fact that car leasing is cost-effective in the long run has piqued the interest of both people and SMEs, who are already looking for ways to cut down on avoidable expenses due to the shortage of funds. Small businesses now have a better option for meeting their employees' transportation needs. It's also popular with companies because it gives lessor the ownership of the vehicle at the end of the lease.

According to reports, the global car leasing market is expected to increase at a CAGR of 14% from 2019 to 2023. Various car leasing businesses are using telematics to make fleet management more convenient to fuel this predicted expansion. As a result, telematics will undoubtedly become increasingly important during the forecast period. Operators can use telematics to track their vehicles, determine the distance travelled and provide roadside assistance. Furthermore, by utilizing telematics data, business car leasing firms may urge their customers to drive environmentally friendly by raising awareness of the negative impacts of carbon emissions and the importance of fuel efficiency.

The global car leasing market is divided into four major regions: Asia Pacific (APAC), Europe, North America, and South America. By the end of 2023, APAC will have the largest market share, with SMEs in China, India, Indonesia, Australia, and Japan favouring automobile leasing. Commercial clients will contribute significantly more to predicted growth than non-commercial customers because private automobile leasing has not taken off as quickly as corporate car leasing. Car leasing companies all around the world have seen growing demand as a result of rising mobility demands and high-end fleet management systems. Governments all around the world have started offering tax reforms and very advantageous leasing programs to diversify the market. This has undoubtedly aided the market's adoption of electric vehicles and attracted low-income buyers.

Here are some helpful facts about the worldwide car leasing market's rapid growth:

  • Companies like ALD Automotive, Societe Generale, Volkswagen Leasing Services, Mercedes-Benz Financial Services, Athlon, Natixis Leasing, and LeasePlan dominate the global car leasing business.  
  • Sedans are the most popular vehicle type for leasing all over the world. 
  • In the global leasing market, Europe and North America are the most influential regions. 
  • Because of the increasing demand for mobility, around 30% of new cars in Europe are registered as leased vehicles. 

When it comes to leasing, a spike in the number of small and medium businesses is driving up demand for light commercial vehicles.


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