The automotive market is back on track! At least according to the report published by SLV. Car sales in Switzerland surged in 2023, with leasing gaining in popularity. As new registrations climbed by 11.6%, leasing penetration rose by 6.45%, demonstrating a clear appeal towards this financing method. The road ahead looks bright, heralding a promising future for the automotive industry.
Overall growth in 2023
The Corona virus, brought with it a difficult period for the automotive industry, business significantly slowed down. But, according to Auto Schweiz, new car registrations reached 252’214 units in 2023, representing a significant growth of 11.6% compared to the previous year. Although these results are still under the 300’000 registrations pre-crisis they show good signs of recovery.
While reading the Swiss Leasing Association (SLV) study our focus was drowned to the lease penetration rate, i.e. percentage of total sales that are made by leasing instead of buying (it shows how popular leasing is compared to buying in a market), that increased by 6.45% in 2023 compared to 2022. This shows us that we are heading to the right direction. Customers are more and more inclined to select leasing over ownership.
Leasing for who and what?
An interesting aspect of the report was about the consumer split. It reveals that leasing is an attractive financing method, mainly for private customers. Those represent 89.7% of all passenger car leasing in 2023.
All cars can be financed thanks to leasing and the SLV report confirms it. Indeed this financing solution is popular for both new and pre-owned vehicles, as they respectively represent 58.3% and 41.7% of all leases. Giving us the opportunity to reach out to all car dealers.
Do we see the same trends at LeaseTeq?
At our level, we also see the same trend. When comparing the financed volumes for the first half of 2023 with the first half of 2024 we see a 47% increase. But we have exciting news, and we anticipate an even more significant rise by the end of 2024. Stay tuned!
As for the customer split, we observe another proportion, our portfolio is more balanced, 63.6% of our financed vehicle are for private customers and 36.4% for corporate ones. Our leasing approach speaks to everyone and corporation are often in the search of easy, fast and efficient solutions.
In 2023, we successfully positioned ourselves as a preferred partner for Tesla, financing 26% of the brand’s new vehicle registrations in Switzerland. Our goal in 2024 is to further strengthen this collaboration.
LeaseTeq in a few words
LeaseTeq is a digital origination platform – redefining auto finance with 100% digital solutions, creating a scalable, innovative, and sustainable auto finance ecosystem along the entire value chain for all ecosystem partners.
Conclusion
It seems that the automotive industry’s recovery in 2023 signals a bright future, with rising car registrations and a growing preference for leasing. LeaseTeq is at the forefront of this shift, reinforcing key partnerships and leading innovation in auto finance. Our solution answers people’s need by providing a fully digital environment which is user friendly and provides fast access to leasing. As we move through 2024, we’re excited to continue driving positive change in the industry.
Source: SLV report for 2023 https://www.leasingverband.ch/cms/upload/Geschaeftsberichte/240412_SLV_Dataset_2023_v1_oF_inklDelta.pdf)
