Auto Leasing Services Market Outlook – 2027
The auto leasing services market is experiencing a substantial growth, and is expected to grow significantly in the coming years. It refers to leasing of a motor vehicle for a specified period of time with a certain amount of agreed money. In some cases, vehicles are leased to businesses for commercial purposes, which allows enterprises to use cars even in case of liquidity issues. In addition, auto leasing is beneficial for both consumers and merchants. Generally, an auto lease agreement is in accordance with terms and conditions that the lessee should strictly follow.
The global auto leasing services market is segmented into lease type, vehicle type, end user and region. Based on lease type, the market is further segmented into long term auto leasing and short term auto leasing. In terms of vehicle type, the market is sub-divided into passenger vehicles and good vehicles. Based on end user, the market is bifurcated further into business and individuals. Geographically, the global market is divided across North America (U.S. and Canada), Europe (Germany, UK, France, and rest of Europe), Asia-Pacific (China, Japan, India, and rest of Asia-Pacific), Latin America (Brazil, Mexico, and rest of LATAM) and Middle East & Africa.
Key players of the auto leasing services market analysed in the research include ALD Automotive, Arval Service Lease-SA, LeasePlan Corporation, Leasys S.p.A., Volkswagen Leasing Services, Lex Autolease, SkoFIN s.r.o., Mercedes Benz Financial Services, General Motors Financial Company Inc., BMW Financial Services. They have adopted various strategies including new product launches, collaborations, partnerships, mergers & acquisitions, joint ventures, agreements, and others to gain a stronghold and international presence across the world.
Top Impacting Factors
Rise in demand for small lease costs, easy availability of leasing services, and incentives such as tax benefits & no down payment requirements are some of the factors that drive the market growth. However, government restrictions and financial costs on factors such as accidents and poor customer security for rented vehicle hinder the demand for auto leasing services in the market. Conversely, evolving trend of leasing a vehicle rather than buying one and growth in adoption of auto leasing services in emerging countries are expected to provide immense opportunities for the market in the coming years.
Innovative Strategies to Flourish the Market
Auto makers are designing creative new financing models as consumers plan to switch from ownership to user-ship. For instance, FCA Bank S.p.A. partnered with Amazon.com, Inc., and started offering a variety of innovative services such as pay per kilometer by subscribing through its mobility arm services. In addition, with no deposits, pay per kilometer deal offers a variety of built-in incentives for travelers, including failure and compensation charged on a monthly basis with an extra fee on each kilometer traveled.
Surge in Adoption of Auto Leasing
With rise in benefits from auto leasing, individuals, small & medium-sized companies, and other businesses have shifted from buying a fleet of vehicles to leasing vehicles globally. Moreover, in emerging economies country such as India, Skoda Auto has started car leasing services, which is dominated by individuals such as CAs, doctors, and small & medium-sized enterprises in the country. Furthermore, in countries such as the U.S., the UK, France, and Germany, the auto leasing sector has developed a large presence and is expected to grow at a rapid pace.
Key Benefits of the Report
- This study presents analytical depiction of the global auto leasing services market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global auto leasing services market share.
- The current market is quantitatively analyzed to highlight the auto leasing services market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed auto leasing services market analysis based on the present and future competitive intensity of the market.
COVID-19 Scenario Analysis:
- With collapsing of the global economy by the spread of COVID-19, entire value chain of the auto leasing sector has affected tremendously, in terms of overdue payments received by clients in the leasing market.
- Furthermore, original equipment manufacturers (OEMs) such as Toyota, PSA, Volkswagen AG, and Nissan Motor Co., Ltd., have ceased production, owing to the pandemic, while other players are producing limited versions in the market.
- As a result, it has led to delays in delivery of negotiated agreements and signing of new product deals.
- However, owing to lockdowns & travel bans, which have triggered several business interruptions, the business-to-consumer segment is largely affected globally.
Questions Answered in the Auto Leasing Services Market Research Report:
- Who are the leading market players active in the global auto leasing services market?
- What would be the detailed impact of COVID-19 on the global auto leasing services market?
- What current auto leasing services market trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the global auto leasing services market?
- What are the projections for the future that would help in taking further strategic steps?
Auto Leasing Services Market Report Highlights
By Vehicle Type
By End User
Key Market Players
LeasePlan Corporation, ALD Automotive, Volkswagen Leasing Services, General Motors Financial Company Inc., BMW Financial Services, Arval Service Lease-SA, Lex Autolease, Mercedes Benz Financial Services, Leasys S.p.A., SkoFIN s.r.o,