Leasing market down 27% in first nine months

The volume of financing granted by leasing companies fell by 21% in the third quarter of the year compared with the previous three months, to 236.5 billion euros because of the negative impact of the austerity measures on the economy, after a 23% rise recorded in April-June, show data of the Financial Companies Association ALB.

The financing granted by leasing companies in the first nine months of the year fell by 27.6% to 780 million euros, after the volume of financing exceeded one billion euros between January and September of 2009.
“The third-quarter dynamics was influenced by the VAT hike and by the salary cuts. We are hoping to end this year with a volume of financing of around one billion euros,” said Bas Hoekstra, president of ALB and general manager of ING Lease. The leasing market recorded an over 74% decline in the course of last year.
Financing for vehicles continues to account for two thirds of the leasing market, with the volume of business on this segment amounting to 497.4 million euros in the first nine months, 27.4% less than in the corresponding period of last year.