Increasing Motor Vehicle Production in Europe is Expected to Drive Growth of Vehicle Leasing Market in Region


Published Date : Nov 21, 2017

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Vendor who lease vehicles buy them from vehicle manufacturers at a reasonable rate and then lease them out to the companies managing vehicle fleets, corporate entities, individual clients, retail vendors, SMEs, and other segments’ vendors. The lease period and lease rate varies depending up the millage of the vehicle. Other factors such as age of the automobile, type of vehicle, type of lease, and economic development of the country are also taken into account. At the end of the lease contract, all the lessors try to maximize the valuation of the vehicle either by selling it or scrapping it at a favorable time. Commercial vehicles and passenger cars are among the most commonly used vehicle in Europe for the purpose of leasing.

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There is a popular trend in the Europe market for vehicle leasing is that of electric cars. The leasing of electric cars is expected to lead the segment of passenger car of the Europe vehicle leasing market. The increasing concerns about pollution and environment among the customers in Europe along with the strict regulations by the local governments about emission of carbon are acting as strong driving factors for the growth of the vehicle leasing market. Moreover, the governments are also offering subsidies for the use of electric cars and thus it is shifting the preference of the end use customers from fuel engine to electric car automobiles. The shortage of fossil fuel is also helping to propel the growth of this trend. Thus, leasing of electric cars is expected to significantly help in driving the overall development of the vehicle leasing market in Europe over the course of the given forecast period of 2017 to 2021.

One of the key driving factors for the growth of the vehicle leasing market in Europe is the booming motor vehicle manufacturing industry in Europe. The growth rate of production of new vehicles in countries across Europe such as Germany and France have been on the higher side. There has been an increasing demand for moto vehicles across Europe and thus, vehicle manufacturers and retailers are heavily investing in the region. This comes in spite of the strict regulations put up local governments across Europe about regulating the carbon emission. These factors are thus expected to drive the overall growth of the vehicle leasing market in Europe over the coming years.

Some of the key players in the Europe market for vehicle leasing include names such as Arval, Deutsche Leasing, VTB, UBI Leasing, and DLL among others.

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