Leasing market still not rebounding

The figures the leasing market reported several days ago, indicating an over 30% decline in the first quarter, pushed many company managers to rethink the plans they drew up at the start of the year. Whilst in January there was still hope for growth, now it is clear: leasing will fall further. Leasing, an industry that only two years ago was close to the 5bn-euro mark, is set to cope with yet another challenging year, after it was the hardest hit sector of the economy in 2009, with a 72% slump. Why is the market not picking up? Companies, financers’ main clients, have put their investment plans on hold, as they have no idea whether VAT and the flat tax are to be raised, hurting their businesses. The same uncertainty is being felt among individual clients, say leasing firm managers. The first quarter of 2010 is among the worst periods in the history of the leasing market, mainly as companies are no longer investing in car fleets. Also, amid the current economic climate, nobody is buying anything any longer. 2010 will most likely end with a market decline from the already low level of 2009, but some more upbeat managers see stagnation.