Polish leasing market on the rise
In 2015, the Polish car leasing industry financed around 50 billion zloty (€11.4 billion) worth of investments, an increase of 16.3% over 2014 and an all-time record. Passenger cars and LCVs accounted for almost 37.5% of total assets financed by leasing companies.
The leasing industry in Poland has been on a very profitable streak for several years now. Evaluating the first half of 2016, the Polish Leasing Association (PLA) expects this trend to continue.
The rise of leasing in the light-vehicle segment strongly correlates with trends in the wider Polish economy. Growing domestic demand has improved corporate finances. And a 50% deduction in VAT on fuel is providing a strong fiscal impulse for car purchases, especially in the premium segment. As a result, fleet registrations are rising faster than private ones. In Poland, two-thirds of new car registrations are by companies.LONG-TERM RENTAL PREFERRED
In 2015, the 21 members of the Polish Vehicle Rental and Leasing Association (PVRLA) bought a total of 73,651 new cars. The long term rental market increased by 20,872 cars, a 16.6% increase year-on-year, and a six-year record. PVRLA members control around 80% of the fleet and leasing market, which at the end of 2015 totaled 146,703 cars in three services: Full-Service Leasing, Fleet Management and Leasing & Service.
For many years now, full-service leasing has been the most popular option for Polish businesses. They pay only for the use of the company car, knowing exactly what this will cost them. They don't have to worry about extra costs. At the end of 2015, PVRLA members had 105,154 cars in full-service leasing, or 71.7% of its total fleet. The option had grown by 10.2% (9,742 cars) year on year.
Fleet management is also quite popular, representing 24,711 vehicles (16.8% of Poland's total fleet and leasing market). PVRLA members recorded 81% growth in this segment, which provides full or partial fleet service without funding the car.
In 2015, about 11.5% of cars in PVRLA's total fleet (16,838 units) were used under long-term leasing & service arrangements. Like fullservice leasing, this involves external fleet financing, but with a partial rather than full range of admin and maintenance services.SME SECTOR
International companies dominate the Polish fleet and lease market. In March 2016, the biggest full-service leasing companies were LeasePlan (22,238 units), Arval (16,876), MasterLease (15,570), Alphabet (12,257), Carefleet (11,197) and ALD Automotive (10,636).
As elsewhere, smaller companies in Poland often still opt for traditional financing methods, with medium and large companies turning to long-term rental solutions. However, as awareness of this option's advantages spreads even among SMEs, the leasing industry will seek to cash in on this segment's potential.
Authored by Adam Dziedziński, FLEET Magazine Poland