Analysis
24 May 17

Turkey: fleet maturity speeding up

In times where everything is accelerating, speed, efficiency and standardisation are an absolute must to maintain service levels. International and domestic lessors are stepping up their digital game to keep up the pace with their ever more professionalising clients.  

 “Companies must invest in a strong digital infrastructure to give fast and good service. In the operational fleet market, fleet owners also want to manage everything online, including making payments and booking after sales services”, says İlkay Ersoy, General Manager at DRD Fleet Leasing. ”Throughout Turkey, offering the same quality and standards is also quite important. A real-time connection with every service point is a must, together with integrated and monitored services.

Parallel with this evolution, VDF Filo sees a natural evolution amongst clients, which is from “get the cars” to “manage the fleet”. “We’re receiving more and more RFQs, even from local clients, with smart questionnaires. We may call this period the TCO era, in which I personally believe our clients will pass faster to the next step than any other market. Turkey’s dynamic nature is forcing every player in this game to evolve for sustainable growth”, clarifies Fleet General Manager Ali Kemal Uluer.

Operating lease on the rise

Even though most SMEs in Turkey stick to outright purchase and credit, Turkish leasing companies see a clear trend towards getting the vehicles off the balance. “Auto credit is dropping and is now at the same level as financial leasing. Full service leasing, whatever the size of the company and the fleet, is gaining in popularity and holds a bright future in Turkey”, says Philippe Chabert, Managing Director at TebArval.

This is confirmed by Turkay Oktay, Managing Director at LeasePlan Turkey: “The trend we are seeing is a shift from outright purchase to leasing, meaning the leasing market will continue to grow”. İlkay Ersoy explains why: “Benefits and cost advantages provided by operational leasing translate into an increased preference rate. For this point, the sector offers financial solutions with different payment methods and the most appropriate solution alternatives for costumers’ needs with special service packages.”

Look further than the numbers

Which advice can the Turkish lessors give to their customers in the face of today’s economic and legislative situation? “Do not make your vehicle choice before you have a rental price and ask support from your leasing company”, LeasePlan’s Turkay Oktay states.

His counterpart at TabArval goes one step further: “Don’t just look at the rental price. Rely on in experts to support your decision making for a best-in-class quality of service and a cost-effective mobility solution. Also, make sure your leasing partner can provide reliable data in view of IFRS16”.

İlkay Ersoy from DRD is on the same page: “Customers should not focus just on pricing: the quality and the extent of the services offered should be checked, too.”  Finally, the geographic factor must not be overlooked: is the supplier limited to Istanbul, or does he operate nationwide? “Multinational companies should be checked and challenged as well as locals”, reckons Mr. Ersoy. “Do not forget that local firms know country conditions and expectations, so they can offer better adapted solutions.”

 

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Authored by: Dieter Quartier