WHAT DOES THE FUTURE OF THE AUTOMOTIVE INDUSTRY LOOK LIKE?

The automotive market is back on track! At least according to the report published by the Swiss Leasing Association ( SLV ).

Car sales in Switzerland rose sharply in 2023, with leasing becoming increasingly popular. While new registrations increased by 11.6%, the leasing share rose by 6.45%, demonstrating the clear popularity of this form of financing. The future looks promising for the automotive industry.

Total growth in 2023

The coronavirus has brought a difficult period to the automotive industry, and business has slowed significantly. However, according to Auto-Schweiz, new registrations reached 252,214 vehicles in 2023, representing a significant increase of 11.6% over the previous year. While these results are still below the 300,000 new registrations before the crisis, they show good signs of recovery. In analyzing the study by the Swiss Leasing Association (SLV), we focused on the leasing penetration rate, i.e., the percentage of total sales that were made through leasing rather than purchasing (it indicates how popular leasing is compared to purchasing in a market). This shows us that we are moving in the right direction. Customers often prefer leasing to purchasing.

Leasing for whom and what?

An interesting aspect of the report is the distribution of consumers. It shows that leasing is an attractive financing method, especially for private customers. They account for 89.7% of all car leasing contracts in 2023.

All vehicles can be financed through leasing, as confirmed by the SLV. Indeed, this financing solution is popular for both new and used cars, accounting for 58.3% and 41.7% of all leasing contracts, respectively. This allows us to reach all garages.

Do we see the same trends at LEASETEQ?

At our level, we're also seeing the same trend. Comparing the financed volumes for the first half of 2023 with those for the first half of 2024, we see a 47% increase. But we have exciting news, and we expect an even more significant increase by the end of 2024. Stay tuned!

In terms of customer distribution, we're seeing a different ratio—our portfolio is more balanced. 63.6% of our financed vehicles are for private customers and 36.4% for corporate customers. Our leasing approach appeals to everyone, and companies are often looking for simple, fast, and efficient solutions.

In 2023, we successfully positioned ourselves as Tesla's preferred partner, financing 26% of the brand's new registrations in Switzerland. Our goal for 2024 is to further expand this collaboration.

Who we are

LEASETEQ is a digital financing platform that redefines car financing with 100% digital solutions and creates a scalable, innovative, and sustainable car financing ecosystem along the entire value chain for all ecosystem partners.

Conclusion

The automotive industry's recovery in 2023 appears to promise a bright future, with rising registration numbers and a growing preference for leasing. LEASETEQ is at the forefront of this change, strengthening key partnerships and leading innovation in car financing. Our solution meets people's needs by providing a fully digital environment that is user-friendly and enables quick access to leasing. We look forward to continuing to drive positive change in the industry in 2024.