New lease on life: Businesses return to leases as a rising cash rate drives up purchase costs
Fleet vehicle lessors have come up against tough trading conditions. Prior to the outbreak of COVID-19, a relatively low cash rate and uncertain economic conditions all but halted demand for fleet vehicles. Businesses that were in the market for vehicles found it cheaper to buy fleets rather than lease them from fleet vehicle lessors, leading to a bypass of the industry entirely. Trading conditions didn't get any better once COVID hit, with a tumble in business confidence causing businesses to halt non-essential spending, with this extending to fleet vehicles. While some businesses chose to bring fleet management operations in-house, existing leasing contracts made it hard for others to reduce their fleet vehicle investment.
Participants in the industry lease vehicles to corporations, small businesses and government institutions. Fleet vehicle leasing companies also offer fleet management services and novated leases.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- ORIX Australia Corporation Limited
- Toyota Finance Australia Limited
- FleetPartners Group Limited
- SG Fleet Group Limited
- McMillan Shakespeare Limited
Methodology
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