Becoming the owner of your car is no longer an ambition in France. According to Vehicle Registration System (VIS) data reprocessed by NGC Data, the lease topped sales for the first time in 2022.
Thus, last year, 52.4% of new car registrations followed an LOA (lease with offer to buy) or LLD (long-term lease), compared to around 30% in 2018.
More affordable monthly payments
An offer that concerns all types of customers, individuals and professionals. “The LOA only concerns individuals, although some financial companies offer the LLD to individuals. On the other hand, the LOA and the LLD are offered to companies”, explains an expert from NGC Data.
This increase is explained by several factors: the rise in the price of new cars and a simplified acquisition model that includes services in a monthly subscription that is more attractive in terms of monthly installments than a conventional loan for individuals.
Data provided by NGC Data shows that all makes, models and ranges now go through this acquisition system. Of course, there are the premium brands (Mercedes, Porsche, Jaguar, Tesla or Alpine) that can attract new customers. But also increasingly general brands such as Renault, Peugeot, Toyota or Skoda.
long contracts
The leading group of star leasing brands consists of Mini, Seat and BMW. Thus, 68.2% of the Minis that were put into circulation last year were through a leasing offer, compared to 63.5% of the BMWs, owners of Minis.
Other brands that practice leasing a lot: Seat (67.2%) and its sports brand Cupra (59.6%). The latter is mainly sold in LOA, because it is preferred by individuals. In total, 18 brands distribute at least half of their models through rental than through traditional sales, such as Audi, Lexus, Smart or Land Rover.
Lower monthly payments
By renting, the user limits risk taking and reduces acquisition and maintenance costs. In addition, you are no longer penalized for the loss in value of your purchase when you resell it to buy a new car. In addition, the formulas allow you to lower the monthly payments by opting for a long-term contract or renting a used car.
“After one year of circulation, a vehicle can lose up to 30% of its value and 50% after 3 years while it remains in good condition. For this reason, it is often economically more interesting to opt for a used lease”, explains the site. transferlease
The only restriction of the lease is that after the rental period, the car must be returned in “acceptable” condition. Even if it is only a tenant, the user is responsible for it and to avoid degrading it too much at the risk of having to go to the cash register at the end of the contract.
Despite everything, the leasing trend has continued to prevail for years. In 2010, cash or conventional credit purchases represented 92% of sales to individuals. This rate rose to 79% in 2015, 59% in 2020, and then 48% in 2022.
Source: BFM TV
