By: Kishore K -- Category Specialization Analyst, Professional Services and Travel
01 January, 2017
Used car leasing services have started to gain traction among buyers. The automotive market witnessed a decrease in sales in 2018. However, used car sales and the leasing industry registered a growth, owing to an increase in vehicle prices. Top fleet-leasing companies and OEMs are offering used cars on lease and are also providing leasing services to individuals. Large organizations have a lesser impact over the leasing industry. However, SMEs and companies having smaller fleets can consider opting for used cars for their leasing services. This article provides insights on the impact of used car leasing on corporate fleets, the types of used car leasing services, and the potential benefits.
Preference for used car leasing is increasing owing to lower total cost of ownership (TCO) compared with new cars. Private leasing services are growing, which results in a higher number of used cars in the market. Used cars are typically exported to less-mature markets in Africa and Latin America. Used car leasing services are typically preferred by SMEs and companies having smaller fleets. Corporates purchasing vehicles can remarket those through leasing companies.
Typically, used cars are subjected to maintenance checks and repairs. However, these are offered only in certified pre-owned (CPO) cars.
Third-party used car suppliers generally provide used car leasing services through bank tie-ups and offer fleet management through partnership networks. Certified Used
Certified cars are usually preferred for used car leasing services. These are offered by manufacturers’ captive financing companies and third-party service providers like leasing and automotive dealers.
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