“With the increase in car prices, private leasing is becoming more and more important here too,” says Erwin Coesens, country manager of DirectLease. Because it’s not just the price of the vehicle that has inflated. Everything that revolves around four wheels – insurance, assistance, maintenance, tires, repairs, etc. – has also experienced significant inflation. However, all of these elements are included in the monthly rent for an operational lease. No surprise therefore, even if it is important to carefully calibrate your contract in terms of the kilometers traveled annually. Any excess will in fact generate a supplement.
The price of peace of mind
The peace of mind provided by operational leasing is one of the main motivations for motorists who choose this formula. Because from a purely accounting point of view, except in the event of costly breakdowns and outside of warranty, leasing is more expensive than purchasing the vehicle via traditional financing. And in the absence of the possibility of buying back the vehicle at the end of the contract, it is impossible to recover part of the investment.
But avoiding financing, for certain audiences, is also a reason for choosing leasing, notes Erwin Coesens. “We thus have older people who no longer want to invest in a car but prefer to devote their capital to something else,” he says. As for young people, buying a car no longer interests them. They prefer a formula similar to their Netflix subscription or Spotify.”
Towards 50% leasing for individuals in 2030, estimates D’Ieteren
In the case of an operational leasing, unlike a financial leasing, there is no residual value of the vehicle at the end of the contract which allows it to be repurchased. Some will see this as a negative point. But in a rapidly evolving automobile market, this can also be a way to protect yourself from a significant discount. We are thinking in particular of electric vehicles whose constant technological improvement could make today’s EV outdated compared to those which will arrive on the market in 5 years. “In a market where we don’t really know what to buy (editor’s note: in terms of engine), more and more people prefer to leave the risk of the residual value to the importer”, says Jean-Marc Ponteville on this subject, from D’Ieteren. At the importer of the Volkswagen group brands, it is also estimated that with the evolution of the automobile market towards electric, by 2030, half of the vehicles will be delivered in a formula where the customer will only be user and not owner. “Ultimately, in a full electric market and even if EVs are more expensive, we will undoubtedly have leasing at reasonable prices, because the life cycle of an EV is longer than a thermal vehicle and therefore the time depreciation too.”
