The European Leasing Market in 2008*

In 2008, €330.1 billion of new leasing volumes were granted by the firms represented through Leaseurope's members. Leaseurope represents approximately 95% of the European leasing market. For the first time since Leaseurope began collecting data however, total new volumes experienced a negative growth, falling by 5.1% in comparison to 2007 (or 3.1% when exchange rate impacts are not taken into account). Nevertheless, the portfolio of leased assets (outstandings) in Europe continued to progress growing up by 4.3% and amounted to €770.9 billion at the end of 2008 [Fig. 1 to 2].

In 2008, Leaseurope's penetration rate, measured as the amount of overall new business divided by investment defined as gross fixed capital formation excluding investment in private dwellings, after steadily increasing for a number of years dropped slightly to reach 16.0% in 2008. When restricted to equipment (including vehicles), the penetration rate rises to 23.7% while the figure for real estate leasing is 4.6%.

New equipment leasing contracts, including vehicles, amounted to €293.9 billion and real estate leasing volumes worth €36.1 billion were granted during the year. Both sectors experienced a decline compared to 2007 falling by 2.4% and 21.6% respectively [Fig. 3].

New Leasing Volumes per Country in 2008

Equipment and Vehicle Leasing

After solid growth during 2007, the ships, aircraft, railway, and rolling stock segment underwent the sharpest decline in the equipment leasing segment in 2008 with new volumes falling by 14.7%.

Automotive assets, i.e. passenger cars and commercial vehicles, accounted for more than 50% of total new volumes granted during 2008 and remained the largest segment of the European leasing market, with new contracts worth €174.3 billion being granted in 2008. The passenger car sector in particular performed relatively well compared to the overall market in 2008, with new volumes decreasing by only 1.9%. According to Leaseurope estimates based on data provided by members in the Federation's 2008 Annual Statistical Enquiry, leasing members financed some 6.0 million passenger cars in 2008 [Fig. 4 to 5].

Just over two thirds of new equipment (including vehicles) leasing volumes were made to the private sector, with 14% granted to private individuals and 3% to public authorities [Fig. 6]. As in the previous years, the majority of new contracts (almost 70%) were made for an original contract term between 2 to 5 years.

Real Estate Leasing

Since 2005, the growth of real estate leasing has slowed down and in 2008 the sector experienced its most severe drop in new volumes, contracting by 21.6% compared to 2007.

Almost all types of building on lease witnessed a decline in new volumes compared to 2007 with the exception of industrial buildings which remained relatively stable. This segment is also the largest of all property leases, comprising nearly 37% of new real estate leasing volumes [Fig. 7]. In 2008, office buildings, hotel and leisure reached only about half of the new volumes granted during 2007. Retail outlets, utilities and other types of buildings suffered drops of 25.9%, 22.5% and 5.5% respectively.

Real estate leasing contracts granted for a term of 8 to 16 years represented 40.8% of new volumes, a decrease compared to 2007. On the contrary, more contracts were granted for a longer term of between 16 to 20 years with this segment totaling 46% of new real estate volumes in 2008.

Short Term Car Rental

In 2008, Leaseurope's membership included 14 associations representing the short term automotive rental industry.

The short term car rental members reporting in the Leaseurope 2008 Annual Statistical Enquiry purchased some 978 000 cars during the year and at year end owned a fleet of about 782 000 cars. In total, the firms represented through these members made over 32.0 million individual rental contracts during the course of the year [Fig. 8 to 9].

For a copy of the Leaseurope's 2008 Facts & Figures please click here.

*Leaseurope conducts a yearly survey of European leasing activities and the figures here represented are based on the results of Leaseurope's 2008 Annual Statistical Enquiry unless specified otherwise. This section covers all leasing and automotive long term rental (operating leasing) members. The figures presented here refer to the different kinds of leasing, including financial and operating leasing (also referred to as long term rental) and hire purchase contracts that our members represent. They cover all types of leased assets: automotive, equipment and real estate but do not include short term car rental figures which are presented separately below.
All growth rates reported here are calculated based on a homogenous sample of members reporting in Leaseurope's Annual Statistical Enquiries. The growth rates are not adjusted for exchange rate fluctuations unless otherwise stated.

Short Term Car Rental