Leasing shrinks in Turkey for the first time in 10 years
Tokkder, the Turkish leasing and rental association, has just shared the ‘Turkish Operational Leasing Sector Report’ of 2018, which sets out the findings of the market research. In 2018, when new passenger car sales in Turkey decreased by 35% compared to 2017 (Source: ODD), the Turkish operational leasing sector also decreased by 11.5%. This is the first time the sector has decreased over the past 10 years. The vehicle fleet of the Turkish operational leasing sector now stands at approximately 323,800.
The main reasons for the decrease:
- The bankruptcy of one of the biggest player in the sector with 20,000 cars
- The high financing cost incurred as a result of the rental contracts in Turkish Lire
- Limited access to financial resources
- Decrease in demand due to company cutbacks as a result of the economic crisis
The president of the Tokkder, Inan Ekici, said in a statement that at the beginning of 2019 interest rates are falling and commercial vehicle rentals have begun the year well with these positive developments. He expects further growth in the sector, up to some 375,000 units in 2020.
Author: Nevzat Girgin