November brings Motoractive 11.5m euros

Leasing company Motoractive, one of the largest independent players on the market, in November sealed 600 contracts worth over 11.5 million euros, the biggest monthly level of financing ever achieved by the company.

“The development of the leasing market supported by the auto market, the increasing number of subsidiaries and the higher weight of equipment in total financing have triggered these results,” says Felicia Relenschi, Motoractive CEO.

The average value of contracts financed in one month stands at 8 million euros, according to company officials.

In the first 11 months of the year, the financed volume amounted to 82 million euros, 53% higher than in the similar period of last year.

“The higher volume of financing pushed us to reconsider the original 85m-euro forecasts. The value of contracts will probably top 90 million euros this year,” Relenschi said.

“In 2005, total assets will exceed 100 million euros, with profit revolving around 3.7 million euros,” she added.

Last year, Motoractive financed merchandise worth 60 million euros and reported net income standing at 1.7 million euros.

As it is the case with the entire leasing market, the car segment accounts for the biggest share of the total contracts. Of the total assets financed by Motoractive this year, car leasing accounted for 90% (70% cars and 20% commercial vehicles), while equipment financing was 10%.

This year, Motoractive, like the entire leasing industry, has fully benefited from the spectacular expansion seen by the car market. Sales of new cars went beyond the 235,000-unit level in the first eleven months of the year, up 46% on the corresponding period of 2004.

Last month brought a slight decline in sales of new cars from the previous month, but November is still one of the best months of the year in terms of sales.

The car market may this year exceed the level of 250,000-260,000 units sold (which means 30-40% growth) and a value of more than 2.5 billion euros.

For 2006, Motoractive management anticipates financing will surge by over 30%, due to the car market and to the increase seen by the equipment segment.

marius.anton@zf.ro