AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS market for automotive finance and leasing for consumers in Europe was ... distribution channel and financing method . ... BMW

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  • AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN POLAND

    PERSPECTIVE OF DEVELOPMENT

    Author:

    Dominik Fijakowski

    Sales Director - Head of Consumer Lease Project

    Raiffeisen-Leasing Polska S.A.

    dominik.fijalkowski@raiffeisen.pl

  • INTRODUCTION

    Changes of new legal acts in Poland, gives the possibility

    to introduce a new financial service for the private individuals.

    This kind of product has been so far not possible to apply in Polish

    financial market.

  • PASSENGER VEHICLE DATA IN

    EUROPEEuropes passenger car amount is characterized by slow but predictable growth.

    Between 2006 and 2010, the size of the passenger car quantity in the 26 countries in

    Europe considered in this study increased from 268.5 million to an estimated 294.2

    million, thereby demonstrating average annual growth of 2.3%. When broken out by

    region, the highest average growth per annum has been recorded in Eastern and South-

    Eastern Europe at 5.8% followed by Northern and Central Europe (2.1%) and Southern

    and Western Europe (1.0%). As for the individual countries themselves, over the time

    period in question, the Romanian market grew at the fastest average rate per annum of

    9.6% while the UK market made the least progress, given a corresponding value of 0.2%.

  • PASSENGER VEHICLE DATA IN EUROPE NEW

    CARS

    The market for new passenger car sales, including sales to fleet and

    commercial customers, decreased overall at an average rate per annum

    of 3.8% from 18.37 million in 2006 to an estimated 15.75 million in 2010,

    having peaked at 19.14 million in 2007.

  • PASSENGER VEHICLE DATA IN EUROPE NEW CARS CONSUMER PARTICIPATION

    Considering the three distinct regions taking into account sales of new

    passenger cars one could differentiate is to consider sales made to

    individual consumers as a % of total new car sales, which also include commercial customers and fleet buyers.

  • PASSENGER VEHICLE DATA IN EUROPE USED

    CARS

  • MARKET FOR AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN EUROPE

    The market for automotive finance and leasing for consumers in Europe was worth approximately EUR 202.0 billion in 2010.The market shrank by 10.6% compared to its value in 2006, under the impact of the economic crisis.The decrease in the segment of the market has to be analyzed according to age of vehicle, distribution channel and financing method. The decrease in new vehicle segment was much higher than in the segment of used ones.

  • MARKET FOR AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN EUROPE TYPE OF FINANCIAL PRODUCT

    OFFERED TO THE CONSUMER

    The results show that loans account for more than 50% of the total in 19 of the 26 countries investigated, namely Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Turkey and Ukraine.

    In contrast, financial leasing accounts for over a half of business in Bulgaria, the Czech Republic, Romania, Slovenia and Switzerland, while Ireland and the UK are unique by virtue of the fact that more than 50% of the market is composed of hire purchase contracts in these two countries.

  • Consumer market is completely different than the market for companies.

    We should distinguish it from the view of the vehicle's age and

    preferences for the selection of the model.

    The analysis shows that the consumer market in only 19% focused on new vehicles. While the business market, as many as 92% share of new

    vehicles.

    VEHICLE MARKET IN

    POLAND

  • An entrepreneur market shows that, depending on the age of the subject share of financial institutions is different. The biggest competition exist in the market for new vehicles. It is likely that a similar division of the market will take place in financing of vehicles for consumers.

    VEHICLE MARKET IN POLAND PURCHASING GROUPS MARKET SHARE

  • VEHICLE MARKET IN POLAND CONSUMERS BRAND PREFERENCES

    Very important element in the market for consumers is to identify appropriate preferences

    in the choice of brand. The analysis shows that the market is different for new cars and

    used cars. The most popular brand for the consumer in new cars segment is Fiat while in

    the segment of used cars Volkswagen is a leader.

    CONSUMER TOP 25 - NEW CARS

    0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000

    FIAT

    SKODA

    OPEL

    TOYOTA

    RENAULT

    VOLKSWAGEN

    HYUNDAI

    CITROEN

    KIA

    PEUGEOT

    FORD

    NISSAN

    HONDA

    MITSUBISHI

    CHEVROLET

    SUZUKI

    DACIA

    SEAT

    MAZDA

    MERCEDES-BENZ

    BMW

    AUDI

    VOLVO

    SUBARU

    TATA

    19131

    14200

    12775

    12475

    11460

    11081

    10770

    9323

    9157

    8777

    8739

    7836

    7537

    5885

    5211

    4917

    3105

    3057

    2757

    2738

    1977

    1733

    1521

    843

    776

    CONSUMERS TOP 25 - 2-5 YEARS CARS

    0 5000 10000 15000 20000 25000 30000

    VOLKSWAGEN

    OPEL

    RENAULT

    FORD

    AUDI

    PEUGEOT

    TOYOTA

    CITROEN

    MERCEDES-BENZ

    BMW

    SEAT

    MAZDA

    FIAT

    SKODA

    SUZUKI

    VOLVO

    NISSAN

    HONDA

    HYUNDAI

    KIA

    MITSUBISHI

    IVECO

    ALFA ROMEO

    CHRYSLER

    SAAB

    29153

    21898

    15127

    14033

    10669

    10505

    8680

    8305

    6028

    5586

    5441

    4884

    4475

    3402

    3124

    3109

    2842

    2500

    2289

    1800

    1558

    1187

    1038

    916

    768

  • AVERAGE: 84%AVERAGE: 52%

    0% 20% 40% 60% 80% 100%

    AUSTRIA

    BELGIUM

    BULGARIA

    CROATIA

    CZECH REPUBLIC

    DENMARK

    FINLAND

    FRANCE

    GERMANY

    GREECE

    HUNGARY

    IRELAND

    ITALY

    NETHERLANDS

    NORWAY

    POLAND

    PORTUGAL

    ROMANIA

    RUSSIA

    SLOVENIA

    SPAIN

    SWEDEN

    SWITZERLAND

    TURKEY

    UNITED KINGDOM

    UKRAINE

    82%

    89%

    91%

    96%

    90%

    84%

    89%

    88%

    91%

    83%

    82%

    44%

    92%

    85%

    89%

    87%

    91%

    78%

    61%

    97%

    87%

    90%

    90%

    96%

    90%

    32%

    New cars - % financing

    0% 20% 40% 60% 80% 100%

    AUSTRIA

    BELGIUM

    BULGARIA

    CROATIA

    CZECH REPUBLIC

    DENMARK

    FINLAND

    FRANCE

    GERMANY

    GREECE

    HUNGARY

    IRELAND

    ITALY

    NETHERLANDS

    NORWAY

    POLAND

    PORTUGAL

    ROMANIA

    RUSSIA

    SLOVENIA

    SPAIN

    SWEDEN

    SWITZERLAND

    TURKEY

    WUNITED KINGDOM

    UKRAINE

    56%

    55%

    56%

    65%

    56%

    50%

    43%

    58%

    64%

    45%

    44%

    24%

    54%

    57%

    55%

    59%

    66%

    43%

    30%

    69%

    55%

    56%

    61%

    60%

    49%

    10%

    Used cars - % of financing

    VEHICLE MARKET IN POLAND FINANCIAL INSTITUTIONS MARKET SHARE

  • AVERAGE: 58% AVERAGE: 31%

    0% 20% 40% 60% 80% 100%

    AUSTRIA

    BELGIUM

    BULGARIA

    CROATIA

    CZECH REPUBLIC

    DENMARK

    FINLAND

    FRANCE

    GERMANY

    GREECE

    HUNGARY

    IRELAND

    ITALY

    NETHERLANDS

    NORWAY

    POLAND

    PORTUGAL

    ROMANIA

    RUSSIA

    SLOVENIA

    SPAIN

    SWEDEN

    SWITZERLAND

    TURKEY

    UNITED KINGDOM

    UKRAINE

    49%

    52%

    85%

    83%

    52%

    32%

    50%

    45%

    59%

    63%

    36%

    33%

    65%

    32%

    46%

    64%

    59%

    57%

    66%

    87%

    70%

    56%

    57%

    82%

    57%

    63%

    New cars - % dealers share

    0% 20% 40% 60% 80% 100%

    AUSTRIA

    BELGIUM

    BULGARIA

    CROATIA

    CZECH REPUBLIC

    DENMARK

    FINLAND

    FRANCE

    GERMANY

    GREECE

    HUNGARY

    IRLELAND

    ITALY

    NETHERLNDS

    NORWAY

    POLAND

    PORTUGAL

    ROMANIA

    RUSSIA

    SLOVENIA

    SPAIN

    SWEDEN

    SWITZERLAND

    TURKEY

    UNITED KINGDOM

    UKRAINE

    23%

    19%

    21%

    47%

    21%

    19%

    67%

    27%

    43%

    35%

    28%

    19%

    36%

    25%

    35%

    30%

    48%

    12%

    23%

    55%

    42%

    23%

    37%

    34%

    47%

    0%

    Used cars - % dealers share

    VEHICLE MARKET IN POLAND DEALERS SHARE IN FINANCING

  • Social survey - for the Polish Leasing Association

    by INDICATOR

    29%

    71%

    yes no

    Did you hear about consumer leasing institutions?

    N=950

    66,3

    45,3

    24,7

    20,8

    20,3

    17,3

    16,8

    10,0

    9,6

    10,0

    0 10 20 30 40 50 60 70

    Internet

    press

    TV

    friends/family

    bank

    radio

    leasing institution

    leaflet

    purchase place

    other

    Where did you hear about consumer leasing institutions

    N=268**

    IN %

  • Social survey - for the Polish Leasing Association

    by INDICATOR

    32,6%

    16,3%

    51,1%

    yes no do not know

    88,5

    38,8

    38,3

    16,2

    4,8

    0,0 20,0 40,0 60,0 80,0 100,0

    vehicles

    home appliances

    IT

    machinery

    other

    Would you be interested in consumer leasing?What kind of goods would you like finance by consumer leasing?

    N=950