AUTOMOTIVE FINANCE AND LEASING FOR CONSUMERS IN POLAND
– PERSPECTIVE OF DEVELOPMENT
Author:
Dominik Fijałkowski
Sales Director - Head of Consumer Lease Project
Raiffeisen-Leasing Polska S.A.
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
EUROPEEurope’s 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 – CONSUMER’S 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 - % dealer’s 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 - % dealer’s share
VEHICLE MARKET IN POLAND – DEALER’S 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
N=306
IN %
CONCLUSIONS
�Great potential for development of consumer leasing market in Poland
�Long-term opportunity for growth in registrations of new
vehicles
�Developed financial services market in Poland in terms of new
cars and used
�Expanded distribution channels (dealer) in Poland, both in the
area of new cars and used
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