Latest News- Car Leasing Market: Commercial is expected to lead the End-user segment during 2025-2029

The Car Leasing Market is being driven by Rising technological obsolescence of older cars

The Car Leasing Market is expected to grow at a CAGR of 8.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 55.3 billion. In the global car leasing market, an influx of off-lease vehicles emerges annually. These vehicles, once leased, can often remain idle or underutilized within a dealer's inventory. The presence of off-lease cars in stock negatively impacts the earnings of car leasing companies. To mitigate this issue, many leasing firms offer lessees the option to purchase the vehicle post-lease term at the residual value. This approach encourages lessees, who are already familiar with the vehicle's condition, to buy it outright. However, the oversupply of off-lease cars compels dealers to lower lease package prices or sell these vehicles as used cars at substantial discounts to remain competitive. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Commercial
  • Non-commercial
• Type
  • Open-ended
  • Close ended
• Vehicle Type
  • Hatchback
  • Sedan
  • SUV
  • Crossover
• Propulsion
  • ICE
  • Electric
• Distribution Channel
  • Leasing Companies
  • Dealerships
  • Online Platforms
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
  • South America
    • Brazil
    • Argentina
  • Middle East and Africa
    • Egypt

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rising technological obsolescence of older cars
• Effective means of personal transportation for businesses
• Economical way of acquiring car

However, the market also witnesses some limitations, which are as follows:

• Limited customer awareness and acceptance in semi-urban and rural areas
• Value proposition of used cars
• Increased challenge from on-demand taxi operators

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Market Scope in Car Leasing Market Research Report

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Research Analysis Overview

In the Car Leasing Market, key aspects include negotiating lease agreements, forecasting residual values, optimizing lease portfolios, implementing risk mitigation strategies, managing payment processing systems, and customer relationship management. Additionally, vehicle maintenance scheduling, contract lifecycle management, data analytics dashboards, and compliance reporting systems are crucial. Vehicle valuation methods, due diligence processes, and fraud prevention measures ensure regulatory compliance. Lease accounting software, fleet tracking technology, customer service metrics, sales performance indicators, and operational efficiency metrics are essential for business growth. Technology adoption rates and digital transformation initiatives drive process automation tools and business process improvement.

Market Research Overview

The Car Leasing Market encompasses companies specializing in truck, car, camper, bus, van, and motorbike leasing. According to Technavio, the market size is determined by the consolidated revenue of enterprises within the automotive leasing and fleet management sector. Factors driving market expansion include the escalating demand for goods transportation, particularly in emerging economies, where logistical growth is projected to be substantial. Lease contract terms, vehicle depreciation rates, residual value predictions, and leasing payment schedules are crucial considerations for leasing companies utilizing advanced fleet management software to optimize operations.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/