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Car leasing will not rebound this year, either

14.03.2010, 23:30 28

The motor leasing market, which during its good years wentbeyond 3bn euros, will not melt this year, either, after the 75%plunge of 2009, and will be dominated by used cars, which inprevious years held a weight of below 10%. Financing providersexpect this market, once the star of the leasing industry, tostagnate or witness a very slight increase and are counting onequipment or real estate leasing, which is likely to give theirturnover a boost in 2010, after a dramatic 2009 for most companies.Other businesses, such as insurance, depend on the car leasingmarket, since in the case of cars bought through leasing, acomprehensive car insurance policy is mandatory. In 2009, carleasing dropped to 839.6m euros, from 3.38bn euros in 2008, withthe weight in the overall market standing at 63%. "I believe carleasing will not account for more than 50% in the entire market,with financing for used cars to account for the largest share ofthe total (...)," says Florentina Mircea, general manager of TBILeasing.

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