The central and eastern Europe car leasing market is expected to grow at a CAGR of nearly 3 percent during the forecast period (2014 to 2018). A factor, positively influencing the market includes robust demand for novel & small cars. This market has also experienced technical developments in car production.
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However, strict policies may hamper the market in the near future. Autonomous lease firms and fiscal institutions lead the market. This is attributed to their big consumer base and affordable funding programs. Moreover, autonomous lease firms and banks have competitive acumen and well-recognized infrastructures in the market.
There is massive prospect for CFCs to enter the market and create noticeable impact. However, this could involve high participation costs. Based on a report by Radiant Insights, as cars turn older, the demand for small & innovative market cars increases. Additionally, used cars face considerable demand. They are borrowed by autonomous lease firms & banks and traded in from Western Europe.
This aforementioned demand for used cars fuels the central and eastern Europe car leasing market. Furthermore, the report mentions that more stringent policies make it difficult to export into or establish production amenities. Environmental limitations are set to rise during 2014 to 2018. To lower contamination and adhere with environmental dictates, various governments promote the adoption of EVs.
Governmental interference would also boost in the coming years. Considerable transformations in market status and estimated increase in export/import duties could negatively affect market demand. The market has potential for further expansion due to several corporate organizations shifting to operating lease. It has attained a fair level of saturation.
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The market has service & national level providers. However, during financial crisis or recession across other global immature regions, majority of the regional firms tries clearing up their balance sheets and decreasing the costs. Immature markets often call for multiple service suppliers per town and city. They may also face tax issues at fundamental ground levels.
Only three European firms are permitted to sell tax free lease programs. Some of the prominent vendors in the central and eastern Europe car leasing market are Alfa Bank, Unicredit Bank ZAO, LeasePlan, and Gazprombank.
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