Automotive Equipment Rental Is The Most Popular Segment Of The Leasing Market
The leasing market is segmented by type of leased goods into automotive equipment leasing, consumer goods and general rental centers, machinery leasing, and lessors of nonfinancial intangible assets. The global automotive equipment rental and leasing market was the largest segment of the leasing market in 2018, accounting for 31.6% of the total share, worth around $374 billion. Increasing urban population, government initiatives, and the rapidly growing tourism industry increased the demand for car rental and leasing services. In India, for example, vehicle leasing is expected to rise in the future. Vehicle fleet leasing is expected to increase. With government initiatives such as Goods and Services Tax (GST) and smart cities, multinational companies are expanding in India; they are adopting vehicle leasing as a cost-effective measure. The increasing popularity of app-based car aggregator services in India such as Ola and Uber- which disturbed the country’s mobility landscape- is further strengthening India`s leasing companies prospects.
In India, as the level of awareness on leasing benefits is quite low, fleet leasing is in nascent stages. However, the situation has improved recently, and with increasing government initiatives, leasing of automobiles is expected to rise in the future.
In North America, there is high satisfaction among rental car customers. A study was conducted by J.D. Power, in North America, in 2017, among rental car customers. According to the study, the overall rental car satisfaction improved when compared to previous year due to reduced rental charges. The average daily rental price dropped $11 per day in 2017.
According to the same study, price perceptions have the greatest effect on overall satisfaction. Renters who chose a rental car brand based on features and benefits are most satisfied when compared to renters who chose price-based rental car brands.
The automotive equipment rental and leasing segment of the global leasing market includes sales of automotive equipment rental and leasing services by entities that rent out or lease passenger cars, trucks, utility vehicles, trailers, and recreational vehicles. The automotive equipment leasing market is further segmented into passenger car rental, passenger car leasing and truck, utility trailer, and RV (recreational vehicle) rental and leasing.
A survey was conducted by Recreation Vehicle Rental Association (RVRA), in 2016, in the USA, among Recreation Vehicle (RV) rental business operators, regarding towable RV rentals. According to the survey, 45% of business operators planned to include towable RV units in their fleet. Around 80% of the RV dealers renting towable delivered these units to a campground or other location for the customer, and most dealers see an increasing number of requests from customers for trailer deliveries.