Industry Analysis & Industry Trends
The Car Rental and Leasing industry struggled as the UK economy floundered in the two years through 2009-10, but responded with a surge in subsequent years. Revenue reached a trough in 2009-10 after the industry was forced to deal with declining international tourist numbers and weaker corporate leasing demand in some years. These factors contributed to lower vehicle leasing and rental levels and therefore exerted downward pressure on industry revenue and profitability. However, since 2010-11 strong demand from businesses for vehicle leasing and growing demand from tourists has driven revenue back up above pre-recessionary levels, although the industry did struggle once more in 2012-13 as the economy faltered. A more buoyant economy is expected to drive industry revenue growth of 3.5%... purchase to read more
Industry Report - Industry Products Chapter
Car leasing is the largest industry segment and is estimated to account for 43.8% of industry revenue. Operational leasing agreements provide firms with long-term vehicle hire, typically for a period of two to four years. Payments are usually made on a monthly basis. Leasing agreements typically have an agreed annual mileage limit. Leasing is popular for businesses that operate a sizeable fleet of vehicles as it allows the company to acquire vehicles without significant capital outlay. The lessee does not need to worry about the depreciating value of their fleet and, when the contract is up, can just return the car and select a new model.
This segment has remained relatively stable as a proportion of industry revenue over the past few years... purchase to read more