The vehicle leasing sector continues to grow but the industry is changing, according to the White Clarke Group’s Global Leasing Report 2014.
The report continues a history of tracking the worldwide market for leasing products for more than 30 years and has been written by Ed White (pictured), chairman of White Clarke Group.
He said: "In 2012 the global leasing industry experienced its third consecutive year of growth, having apparently recovered from the world economic crisis. Globally, the leasing sector grew by a respectable 8.95% – this in spite of a protracted period of low interest rates in some countries, eroding the tax advantages of pure leasing.
"Equipment leasing continued to grow particularly strongly in China (41.67%) due to a number of factors, including an easing of monetary policy, regulatory relaxation for non-bank financial institutions and decentralisation of approval for foreign-invested lessors.
"The nature of the leasing industry is changing dramatically, in part reflecting changes to fiscal policy. Although not a leasing instrument, hire purchase finance has increasingly become an accepted part of the industry’s portfolio.
"The market is becoming muddied further and in some countries, including the USA, companies are featuring asset finance options that are little more than bank loans.
"The coming year will be the true test for the leasing sector, with the USA anticipating slower growth and tighter margins, and Europe expecting a two per cent decrease in equipment investment.
"Nevertheless, we believe that the industry will again demonstrate its longstanding resilience and adaptability."
The Global Leasing Report features data on international leasing volume and growth by region, market penetration, GDP penetration ratios and market shares as well as a ranking of the top 50 leasing markets by size.
Click here to download a free copy of the report.