Leasing industry Summaries and forecasts

Leasing industry Summaries and forecasts

The leasing industry in the USA is growing stronger. Its value is increasing year by year, especially in the automotive sector. No wonder – it’s a great, convenient and economically sound solution for the leasing industry….
Leasing industry. Summaries and forecasts
The leasing industry in the USA is growing stronger. Its value is increasing year by year, especially in the automotive sector. No wonder – it is a great, convenient and economically reasonable solution for most entrepreneurs, but also, more and more often, for private individuals. According to the American Leasing Association, in 2018 the companies reporting to this institution finalized transactions worth a total of USD 82.6 billion.
Great result
This sector of the automobile market has experienced significant growth. Compared to 2017, the value of sales increased by 21.8%, which is the best result in 11 years. As we can read from the indicators, the category which contributed the most to this record is car leasing. We are talking about both passenger cars and commercial vehicles up to 3.5 tons (such an offer can be found in Santander Consumer Multirent).
In this branch of the market, the value of finalised agreements amounted to USD 39.9 billion, which means an increase by 30.7% as compared to the previous year. Data from the American Leasing Association indicate that corporate purchases still have the highest market share. In 2018, 600,791 new DSO vehicles, i.e. passenger cars and delivery vans up to 3.5 tonnes, were registered. This was due to company purchases, and the strongest purchasing group were leasing companies/ CFM/ RaC. Their share in DSO vehicle registrations for companies in the last year was 67.4%.
Changes in regulations
One of the reasons for such record-breaking results is the change in tax regulations, which came into force on 1 January 2019. In the fourth quarter of 2018, business owners started to use various forms of leasing (operating and financial leasing) even more willingly. The analysis of data clearly shows that it is this form of financing that enjoys an unwavering interest of businessmen – regardless of tax changes. This is because it is easily accessible, convenient and can be used by almost everyone.
Santander Consumer Multirent offers operating leases to businesses, individuals, farmers, civil partnerships and commercial companies. Such an agreement brings a lot of benefits and it is not surprising that entrepreneurs choose it instead of a loan. The advantages of operating leasing include, among others, a wide range of cars, flexible financing, an initial fee of 0% of the value of the vehicle and the term of the agreement up to 60 months. Santander Consumer Multirent also offers a broad package of motor insurance, full loss adjustment care and fuel card.
Forecasts for 2019
Just as the year 2018 looks great financially, so are the announcements for this year. As the American Leasing Association shows, the dynamics of the industry should remain at the level of 5.5% – in accordance with the forecasted growth of private investments and the scenario of economic development in the USA. In 2019, the industry has a chance to provide total financing at a level exceeding USD 87 billion.

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