Leasing companies

Leasing firms are the secret giants of the car world. Half of all new cars in Europe are leased and their market share is forecasted to reach 70% in 2030. They have a critical role in determining how quickly we achieve the switch to electric cars.

A small number of leasing companies dominate the leasing sector. The top seven companies are Volkswagen Financial Services, Ayvens, Arval, Leasys, Alphabet, Athlon and Mobilize Financial Services. They are owned by large carmakers (Volkswagen, Stellantis, Mercedes-Benz, BMW and Renault) and banks (BNP Paribas, Société Générale and Crédit Agricole).

They have a fleet of 9.3 million cars in the EU and account for almost one out of three new car sales (30.0%). These leasing companies are not only large, but they are extremely profitable, with profit margins of 12%-50% for the top seven. Profits have recently crossed the billion euro mark for Ayvens and Arval.

Leasing companies claim that they drive the switch to electric cars but the latest data for the European Union reveals that this is not the case. In France, all top seven leasing companies have a lower uptake of battery electric cars than the general market. Three of the leasing companies (Leasys, Alphabet, Athlon) also lag behind the market in Italy. These are the only two EU markets where data on the electromobility performance of leasing companies is available.

Leasing companies refuse to disclose data on their uptake of battery electric cars in the European Union. Moreover there is also a clear lack of ambition: not one leasing company has set a target to stop leasing fossil fuel cars.

In Europe, leasing offers for BEVs are on average 57% more expensive than their equivalent petrol models.

Leasing companies typically charge customers for the expected loss in value of a vehicle over the three to four year lease, so higher lease prices mean they expect BEVs to lose more of their value. But depreciation of battery electric cars in the EU’s biggest markets (Germany and France) are similar to diesel and petrol vehicles. Customers are being overcharged by leasing companies if they want to switch to a battery electric car. Leasing firms are too conservative when setting their monthly prices.

This means: