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The Use of Leasing Amongst the Public Sector

Leasing is attractive for the Public Sector in many different circumstances. This mainly includes the provision of assets (e.g. Information Technology equipment, vehicles etc.) and the construction of public buildings via consortium with other partners (e.g. schools, hospitals etc.).

Examples of Public Sector lessees:

  • Municipalities
  • Public Hospitals/Universities/Schools
  • Semi-Governmental Institutions
  • Government Ministries
  • Government Owned Corporations

What advantages can leasing offer to the Public Sector?

Leasing can increase the efficiency of public spending and it is a viable alternative to the outright purchase of an asset.

  • Solutions provider: Provide the Public Sector with solutions to access assets and to facilitate infrastructure investments;
  • Tailored approach: Service the Public Sector by developing and providing solutions that fit their specific needs and requirements;
  • Budget control: Can improve cash flow by tailoring repayments to the Public Sector's needs;
  • Pay for what you use/require, not ownership: The Public Sector does not have to pay the full purchase price if they only want to use the asset for a number of years. This enables real cost savings;
  • Flexibility: In the lease terms i.e. the ability to extend or shorten a contract for an asset's use depending on needs;
  • Life-cycle concept: Providing the opportunity to renew the asset, thus ensuring that the Public Sector can avail of the latest available technologies;
  • Full package: The lease can also be accompanied by an array of services, including the insurance and maintenance of the asset; and
  • Positive economic and social effects in the short term: By replacing old and more polluting assets and constructing more modern energy efficient buildings, leasing contributes to a more environmentally friendly environment.

Leaseurope e-publication on Public Sector Leasing

In order to better understand and quantify the importance of leasing to the Public Sector, Leaseurope examined the European Public Sector Leasing Market Segment. The e-publication is now available upon request to the Secretariat. Please contact j.mitchell@leaseurope.org .

The primary objective of the e-publication is to provide a reference tool for the leasing industry depicting the existing framework for, the importance and main drivers of, and the obstacles to, Public sector leasing in a number of national markets.

Case studies of leasing to the Public Sector

Please click on the leasing company logo to view a detailed case study of leasing to the Public Sector.


 

If your leasing company has a case study on leasing to the Public Sector and would like it to feature on this webpage, please contact a.vallette@leaseurope.org