Fleetcorp Turkey in trouble
Turkish leasing company, Fleetcorp, which is part of the Athlon Car Lease network, has been said to file for bankruptcy.
Although not much information is available at the time of this publication, the cause of the company’s meltdown seems to be its Euro debt (according to Turkish online newsletter, Vaaju, up to 300 million Euro), which, due to the Lira’s weak exchange rate has risen from 1.2 billion to 1.8 billion TL.
It is a well-knows fact that Turkish leasing companies buy cars in Euro and sell cars in Turkish Lira. Residual value setting is usually done taking into account a “manageable” devaluation of the TL. Unfortunately, the currency’s value has dropped 36% already against the USD.
The Fleetcorp vehicles have been seized by its creditors.
This is not an isolated problem for the leasing market in Turkey and other leasing companies have been reported to struggle.