NEW YORK, Jan. 11, 2017 /PRNewswire/ -- Strong Market Growth Expected as Leasing Companies Turn Focus to Untapped Retail Segment and Increasing Customer Demand for Hassle-free Mobility Solutions
The retail automobile market in Europe is undergoing a transformation in terms of the vehicle ownership model. The need of the current generation is moving toward mobility alone, and not ownership of the vehicle. This has opened up the market for several retail financing products, one of which is the private leasing contract. The benefits in a private lease—such as maintenance-free possession, low risk on residual value, and options at the end of contract—are attracting customers looking for affordable alternatives. Will this demand be met with enough supply and drive growth of the private lease market in Europe?
This research service is based on actual figures focusing on "private leasing" for the period 2013 to 2015. A forecast of market growth is provided for the period 2016–2020. The geographic scope is EU-26, and vehicle segmentation covers light vehicles, i.e., passenger vehicles (PV) and light commercial vehicles (LCV).
Key Questions this Study Will Answer:
1. What is private vehicle leasing and where does it fit in the vehicle financing ecosystem?
2. What are the distribution channels providing the private leasing product, and how is it categorised?
3. What is the business environment of the vehicle leasing market in Europe?
4. What is the penetration of private lease contracts in the retail segment?
5. What factors are likely to drive and determine the growth of the private leasing market between 2016 and 2020?
6. Which are the key participants offering private leasing product, and what are their profiles?
7. Which are the key customers responsible for growth in the private leasing market?
8. How is the mobility market expected to evolve with innovative mobility models?
Increase in vehicle density on the road, lack of parking slots, and high maintenance costs are transforming the mobility market in Europe. Travel is the key demand and not the asset (car)—hence, customers are looking for alternative options to owning a vehicle. Customers wish to keep up with the trend in terms of new cars every 3–4 years. Also, the preference in flexible mobility options is pushing customers to look for alternatives to owning a car and maintaining it.
Firstly, the need of the customer is changing, so what is in it for private lease products? Is it an opportunity for leasing providers?
Secondly, leasing companies have mostly covered so many corporates across the region that there is little left for them to explore. How is this going to change the arena of the private leasing market?
Rising costs of owning a vehicle inhibit customers from replacing their cars and make them look for alternatives such as public transport, car rentals, and taxis. A few of these options are comfortable but expensive. So, an option of mobility at an affordable price along with comfort would fill this requirement gap. Leasing companies have already started focusing on this retail financing segment to expand their market share early with a first mover advantage.
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