Car leasing will not rebound this year, either

The motor leasing market, which during its good years went beyond 3bn euros, will not melt this year, either, after the 75% plunge of 2009, and will be dominated by used cars, which in previous years held a weight of below 10%. Financing providers expect this market, once the star of the leasing industry, to stagnate or witness a very slight increase and are counting on equipment or real estate leasing, which is likely to give their turnover a boost in 2010, after a dramatic 2009 for most companies. Other businesses, such as insurance, depend on the car leasing market, since in the case of cars bought through leasing, a comprehensive car insurance policy is mandatory. In 2009, car leasing dropped to 839.6m euros, from 3.38bn euros in 2008, with the weight in the overall market standing at 63%. “I believe car leasing will not account for more than 50% in the entire market, with financing for used cars to account for the largest share of the total (…),” says Florentina Mircea, general manager of TBI Leasing.