The operational leasing market in Romania set to growth mode

The operational leasing market is expected to grow by 20 percent this year, with a turnover of EUR 250 million, according to the Romanian Association of Operational Leasing Companies (ASLO). This statement was made during an event organized by the association, where representatives of the industry expressed their opinion on the future of this leasing system in Romania. Representatives of the association added that this growth trend will continue throughout 2012, with the market turnover expected to reach EUR 300 million.

“There is a lot of space for growth in this market”, according to Bogdan Apahidean, President of ASLO. He went on saying that in Western Europe around 60 to 80 percent of vehicles are acquired through operational leasing.

The association forecasts that 9400 vehicles will be delivered through operational leasing, which is 11 percent of the estimated 95000 of new cars that will be registered in Romania this year. The complete operational lease services (financing and fleet management) account for 69 percent of the market, followed by fleet management with 21.6 percent  and financing services with 9.8 percent.

Christian Busch, General Manager of Arval Romania, pinpointed the reasons that lead to an expansion in the operational leasing business. Nowadays, companies don’t have too much liquidity and are outsourcing the fleet management to a specialized company.

“In Romania, clients stick to direct purchase of cars or financial leasing, but are now gradually switching to operational leasing”, added Busch.

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According to Bogdan Apahidean, president of ASLO, the costs for clients in operational leasing may reduce by 10 to 30 percent, depending on the history of the client in managing the car fleet. Apahidean added that the average fleet of cars in operational lease ranges from 25 to 38 units, with 10 to 15 percent being commercial vehicles.

The main clients of operational leasing are in the energy sector, distribution, FMCG and constructions. According to Dragos Rosca of Fleet Management Services, the national post operator “PostaRomana” has 700 vehicles in operational lease. Rosca added that companies are becoming more and more interested in the efficiency of the car fleet.

Dan Stefan, owner of Autonom Lease, added that the largest clients of operational leasing are multinational companies.

The Association is also putting forward a bill that should modify the ordinance 195/2000, together with the Association of Financial Companies in Romania (ALB). The associations want car talons exempted from repalcement when the owner changes the address, and further changes in the vehicle radion system, removing the possibility of fines for operational leasing firms, under certain conditions.

ASLO reunites 90 percent of the operational leasing market in Romania, with 9 members and 3 leasing companies that will receive membership status later this year.  The Association was founded in November 2010, but has been fully functional starting March 2011.

Ovidiu Posirca