Car Fleet Leasing Market in the US: Market demand and forecast 2015-2019
About Fleet Car Leasing
Leasing refers to financing an asset to meet a client's specific need. Car leasing is a system of using a new or used car by paying for a specified period of time. It is similar to renting a car, but for a longer time period. There are two parties involved in leasing a car: lessee (one who pays) and lessor (the owner of the asset who takes the payment).Car leasing can be classified into two types: operating lease and financial lease. Operating leases are short-term leases, wherein the lessee pays the lessor the rental for the period during which the vehicle is on lease. Financial leasing refers to the lease arrangement wherein the lessee indicates their choice of asset and the lessor purchases the asset on their behalf. The lessee repays the cost of the vehicle in monthly instalments. Car leasing is usually available from the following sources: captive finance companies, commercial banks, credit unions, and independent leasing companies.
Technavio's analysts forecast the fleet car leasing market in the US to grow at a CAGR of 4.16% over the period 2014-2019.
Covered in this Report
The fleet car leasing market in the US is segmented based on the types of lease and end-users.Technavio's report, Fleet Car Leasing Market in the US 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. It covers the market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Fleet Car Leasing Market in the US 2015-2019
Technavio recognizes the following companies as the key players in the Fleet Car Leasing Market in the US: EF Education First, Disney, Wall Street English, Global Education and Technology Group and New Oriental Education and Technology Group
Other Prominent Vendors in the market are: ALD Automotive, Arval, ExpatRide, LeasePlan and Sixt Group
Commenting on the report, an analyst from Technavio’s team said: “Captive finance companies are already prevalent in mature markets and are now attempting to increase their hold in emerging markets as well. They are trying to change their legal structure by acquiring full banking licenses. This will enable them to have access to low-cost funding and increase customer loyalty. They also provide consumers with various alluring offerings, from flexible payment terms to 0% financing. Many captive finance companies are offering retail banking products such as credit card facilities to increase their market share. Initially, captive finance companies such as General Motors and Chrysler provided financial services for their vehicles. Now, they made it a full-fledged business, and provide full-banking services to reduce their dependence on banks. General Motors acquired AmeriCredit (now known as General Motors Finance) and Chrysler entered into a subsidy agreement with Santander Consumer US to provide loans to subprime retail customers.”
According to the report, most car purchasers use a specific car model for a few years, but with constant innovation in the automobile industry, there is an urge to stay updated with new models with improved safety features, fuel economy, and navigation systems. For instance, the DOT is working on guidelines to enable V2V systems that facilitate communication between two vehicles and that connect to cities for safety and better traffic, becoming a choice for many people. Leasing provides this opportunity to the lessee, to terminate the lease whenever required, to obtain a model with the latest technology.
Further, the report states that significant changes in market conditions and the anticipated rise in import/export duties may have a negative impact on the demand for car leasing in the US.
EF Education First, Disney, Wall Street English, Global Education and Technology Group and New Oriental Education, Technology Group, ALD Automotive, Arval, ExpatRide, LeasePlan, Sixt Group
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