FREDERIC BANCO

 | 

ALD AUTOMOTIVE SRL

  |  16.12.2016

The Operational Leasing Market – Prospects and Trends

SMEs are our focus in the medium and long term and, in this respect, we are going to launch dedicated products and establish new White Label partnerships.

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Frederic Banco

FREDERIC BANCO

GENERAL MANAGER at ALD AUTOMOTIVE SRL

1. Where does the operational leasing market stand in 2016 in terms of growth and prospects?

 

For 2016, the operational leasing market witnesses a positive trend as the ASLO results reported for the first 9 months indicate more than 57,000 units, which further translates into a 7% growth compared to the same period of last year. We have witnessed a constant growth from one year to another and this is triggered, on the one hand, by the dedicated consultancy activities of the operational leasing companies and, on the other hand, by the customized mobility solutions they develop in order to best meet customers’ expectations.


The local operational leasing market does present significant growth potential and it is our main objective to identify those perspectives in order to capitalise on this opportunity. In this respect, with our dedicated products and White Label partnerships with the producers, we approach the segment of the SMEs whose owners start considering the benefits of the operational leasing. In parallel, our efforts are focused on raising awareness considering the logistical and financial advantages that this product can bring to their business.

 

2. What segment of the market was more dynamic in 2016 – was it fleet management or long-term car leasing? What are the prospects for the Romanian market regarding those sectors in 2017?

 

At the end of 2015, 80% of the contracts between ALD Automotive and its customers were full operational leasing, and the remaining 20% were fleet management ones. Our segmentation of the business lines reflects the industry pattern since, according to ASLO, 73% of company portfolios are full operational leasing contracts, whereas 18% cover fleet management, and the rest covers operational leasing without administration services. Compared to the previous year, we are witnessing a slight growth in terms of customers’ preferences for the full operational leasing contracts, which is accounted for by the fact that they have understood and grown more accustomed to the benefits of this product versus other forms of financing – predictability and transparency, as well as by the efforts made by major companies in the industry in terms of consultancy activities.

 

3. Have companies understood better the advantages of operational leasing in 2016? If so, how has this improved their businesses?

 

2016 appears to have been a positive year for the operational leasing market, especially if the ASLO estimates are reached by the end of the year. Most players have identified and capitalised on the growth opportunities in the market, and one such business line is that of the custom solutions created for addressing the needs of SME owners.

 

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