Demand in “Car Leasing Sector” in Turkey to grow due to increases in new vehicle prices

It is reported that “Car Leasing Sector” in Turkey expects to enjoy a substantial growth following the substantial increases in vehicle prices as well as related taxes hikes imposed by the government. In fact, it is observed that after increases in exchange rates and related taxes have had a serious negative impact on new vehicle prices and the demand in the car leasing sector is expected to climb.

It is a known fact that an increase in any of the items that make up the total cost of ownership of a car, plays an enhancing role on the demand for leasing vehicles rather than owning them.

Within this scope, companies will have a stronger tendency for leasing vehicles, rather than owning them, in order to be able to apply a more cost effective administration as well as transfer the risks arising from ownership of a vehicle. Moreover, a similar situation may be experienced in individual leasing as well.

Regarding expectations experts comment the sector will continue to grow in 2017 even if not as fast as in the past years. The reason is despite the declining economic activity, especially the increase in zero vehicle prices and the many advantages offered by the operational leasing method in terms of efficiency, motivates companies to prefer leasing method rather than owning.  The forecasted figure for the growth of the sector seems to be calculated at 10-12 percent for 2017.