Romanian operational leasing market posts H1 growth of 1 percent to 41,514 units

The legal changes enforced in the local car industry saw the operational leasing market expand by just 1 percent to 41,514 units in the first semester against the same period of last year, according to the Association of Operational Leasing Firms (ASLO).

Daniel Ivan, ASLO president, said the legal changes have blocked the market for used cars and delayed the companies’ transition to the operational leasing system.

“Companies that are active in the construction and infrastructure fields have stopped or delayed investments in new vehicle fleets,” said Ivan.

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Around 3,939 new vehicles have been registered through operational leasing in the first half of the year, accouting for 20 percent of all new registrations of cars and light commercial vehicles.

The ASLO says that 70 percent of the business was generated by the full operational leasing services (financing and fleet management), while fleet management and operational leasing, excluding financing, had a share of 22.1 percent and 7.7 percent, respectively.

“We are optimistic regarding a recovery of the operational leasing market in the second half of the year, following the unlock of EU funded projects with impact on civil constructions and their suppliers, and due the normal cycle of replacing old fleets acquired in the 2006 – 2008 period,” said Ivan.

The association has been able to exempt the operational leasing firms from the limitation of the deduction for amortization expenses. Thus, the leasing installments for cars with a monthly amortization over RON 1,500 (EUR 341) remain unchanged.

The ASLO represents around 90 percent of operational leasing market. Its biggest members are LeasePlan Romania, ALD Automotive, Porsche Mobility, Arval Service Lease Romania and RCI Finantare.

Ovidiu Posirca