Car Leasing Market size to record USD 41.82 billion growth from 2023-2027, Off-lease cars fueling used car market is one of the key market trends, Technavio

NEW YORK, May 1, 2024 /PRNewswire/ -- The global car leasing market size is estimated to grow by USD 41.82 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of 7.73% during the forecast period.

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Key Trends Fueling Growth

• Off-lease cars fueling used car market: 
• Every year, many leased vehicles become available for purchase in the worldwide car leasing market. Car leasing companies face a challenge as these off-lease vehicles accumulate, sitting idle or underused in their inventory. This surplus hampers their profits, prompting dealers to take action. To counter this, they opt to sell these older off-lease cars as used vehicles.
• Offering lessees the option to buy the vehicle at the end of the lease term is common practice, as they are familiar with its condition and may choose to retain ownership by paying the residual amount. This surplus of off-lease cars exerts downward pressure on dealer profits, leading them to either lower lease prices or sell these vehicles as used cars at significant discounts.
• Despite the challenges, selling off-lease vehicles as used cars enables dealers to maintain profitability. This approach is widespread across major car leasing companies globally, fueling the growth of the car leasing market.

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Major Challenges:

• Limited customer awareness and acceptance in semi-urban and rural areas 
• Car leasing, while widespread in cities for over a decade, faces low acceptance in semi-urban and rural areas, where it could offer advantages over car ownership. This limited acceptance is particularly notable in emerging countries like India, China, and Indonesia, where car ownership is often seen as a status symbol.
• The complexity of leasing terms such as money factor, residual value, and capitalized costs adds to the challenge, as does the confusion around additional charges for excess mileage and wear and tear.
• These charges can be particularly burdensome in areas where distances are greater, making it difficult for customers in semi-urban and rural areas to grasp and accept the leasing model. As a result, the lack of awareness and acceptance among these customers is likely to impede the growth of the global car leasing market in the foreseeable future.

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Analyst Review

In the bustling urban landscape, parking woes and congestion plague city residents daily. Transportation needs are evolving, with a demand for hassle-free alternatives to long-term commitments. Consumer preferences shift towards convenient, transparent, and flexible solutions. Car leasing emerges as a transformative shift, offering enhanced accessibility through subscription models.

Rapid adoption of such services brings pitfalls, including fluctuating interest rates and insurance costs. Lease deals entice with the promise of the latest models and tailored consumer preferences. Subscription-based services like Careem and Swapp cater to mobility needs with real-time information and efficient communication.

Telematics and connectivity features ensure vehicle security and real-time insights into performance and maintenance needs. With IoT adoption and smart city initiatives, leasing spans commercial and passenger vehicles, aligning with global mobility coverage. In the face of rapid urbanization and economic uncertainties, companies pivot their expansion strategies to meet changing demands in emerging markets.

Market Overview

Looking for a hassle-free alternative in urban areas without a long-term commitment? Look no further than car leasing. With evolving preferences and various segments covered, including short-term rentals and vehicle subscription services, car leasing offers affordability and flexibility.

Whether you prefer electric or hybrid vehicles, safety and cleaning protocols are prioritized. Enjoy the convenience of regular payments and predetermined lease contracts, tailored to your needs and budget. Say goodbye to the worries of vehicle ownership and hello to the convenience of car leasing.

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Key Topics Covered:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation
 7 Customer Landscape

• End-user 
• Commercial
• Non-commercial
• Type 
• Open-ended
• Close Ended
• Geography 
• North America
• Europe
• APAC
• South America
• Middle East And Africa

 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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