This October, Romstal Leasing saw its financing volume double as compared with the annual average, after it participated in the Bucharest International Auto Show (SIAB).
"In October, we financed 400 contracts worth 10 million euros, double the average value of financing released in the first nine months of this year," says Ionut Chirila, a marketing manager with Romstal Leasing.
"The higher volume of financing registered in October was mainly due to SIAB and this growth was quite important for the leasing industry, considering that sales saw a recoil in November," he added.
From advance payments of just 5%, instant leasing, and zero management fees, to a 6.5% euro interest rate, the offers leasing companies made available during SIAB obviously caught the attention of some of the 240,000 visitors seen at this year''s edition.
As a result, pre-contracts worth 20 million euros were signed at SIAB.
BCR Leasing, BT Leasing Transilvania, Finans Leasing, HVB Leasing, Motoractive, Piraeus Leasing, Romstal Leasing, Raiffeisen Leasing and Volksbank Leasing were among the companies that secured a booth at the 2005 show.
Also aided by the October boom, in the first ten months of the year Romstal Leasing secured some 2,400 new contracts, worth over 60 million euros.
Car leasing accounted for 55% of financing, light and heavy commercial vehicles 37%, equipment financing accounted for 7% of the total, and the rest of the money was included in leasing contracts for motorcycles. The company drew its refinancing mostly from Raiffeisen, HVB Bank, BCR, and Banc Post.
For the whole of 2005, Romstal Leasing officials estimate that at the end of the year the company will register a value of financing standing at 70-75 million euros, at least 75% higher than last year.
"The development of the market, which followed last year''s growth trend, greater access to customer lending products, and the expansion of our territorial network were the main factors that will drive our financing this year toward 75 million euros," explained Chirila.
The company''s territorial network has reached 14 outlets, from 8 last year.
The same strategy will also be pursued next year, when the company plans to open another 6 outlets.
Romstal Leasing officials expect to see financing exceeding 90 million euros next year.
"The 30% growth target will be sustained through the introduction of some new products in our portfolio, as well as by the development of the leasing market," states Chirila. The company intends to launch a product for individuals, real estate leasing and second hand leasing.
The Romstal Leasing official believes the leasing market is likely to slightly exceed 2.5 billion euros next year.
marius.anton@zf.ro ; adrian.mirsanu@zf.ro
The 2006 strategy
@ Launch of a financial product tailored to individual customers
@ Expansion of the network to 20 offices
@ Development of the real estate leasing segment
@ Development of leasing products for second hand goods
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