Leasing loses ground to loans in car purchasing

The number of new imported cars bought through leasing in Romania reached 23,040 units in the first six months this year, up 57% on the same time last year, according to data from the Association of Automotive Manufacturers and Importers of Romania (APIA). This performance comes at a time when total sales for new imported cars rose by 77%.

This means that although leasing sales have grown, this system of funding is still lagging behind the performance of bank loans or cash purchases.

While the share of sales in the total represented by leasing amounted to 59% in the first half of last year, this level has now fallen to 52%. Sales using bank loans or cash reached 21,128 units (48%), twice the level for the same period in 2004 (10,314 units).

The best-selling imported brands include Renault, with 34% of its sales made through leasing (3,432 units), Skoda, 57% (3,670 units), Volkswagen, 55% (2,681 units,) and Peugeot, 25% (1,096 units). Things are different when it comes to imports of commercial vehicles of less than 3.5 tonnes, where leasing remained strong with 66%.

Sales in leasing in the first half of the year rose by 71% to 4,072 units, 10% above the growth for the cash and instalments system.

As for Romanian cars, the only data in existence for purchase choices relates to Dacia. Of a total of 51,935 units sold in the first six months, 16% (8,478 units) were sold in leasing.

The lower share of leasing on this segment can be explained by the low prices, encouraging customers to choose loans or cash.