European Insight: Trends in the Spanish Leasing Sector

Rising forecast residual values and reduced servicing, maintenance and repair budgets have resulted in a better deal for fleet operators in the Spanish leasing sector.

Since the end of 2013, Spain’s rental rates have fallen steadily, with the monthly cost for leasing a car now -3.3% less than it was 2 years ago, and -1.9% for light commercial vehicles.

Even though new car prices have risen on average by +3.2% over the last 12 months, rentals remain lower thanks to a +9.3% improvement in forecast car residual values (RV's) over the last 2 years, and a staggering +19.8% rise in anticipated future LCV values.

A drop in servicing, maintenance and repair (SMR) has also helped. The SMR budgets on cars have fallen by -1.3% in the last 2 years and by -5.4% since November 2014. For LCV's, they have dropped by -4.6% over the last 24 months and -5.3% last year.

 The figures come from the latest Experteye European Leasing index survey, which tracks forecast residual values (RV), servicing, maintenance and repair (SMR) costs and rental rates in six European countries using data supplied by major leasing companies. 

 Every month Experteye gathers data from major leasing companies throughout Europe regarding their residual value forecasts, SMR budgets and rental rates across a broad basket of the most popular fleet vehicles.

 Rick Yarrow, managing director of Experteye says, “The Spanish leasing sector is enjoying some positive trends. The improvement in forecast residual values signals confidence in the future used vehicle market and economy as a whole.

 “The reduction in the servicing, maintenance and repair budgets built into contract rentals means leasing companies are passing on the savings they are enjoying, which is good news for customers. As a result, rentals are coming down as new car prices rise.”

 Back in 2009, when the global recession was taking grip, Experteye gave monthly rentals, forecast residual values and SMR budgets a nominal index of 100 and have been tracking their movements ever since.

 6 years on and average forecast residual values, as a percentage of new car prices, are stronger than they were back then, however SMR budgets and monthly rentals have still not risen to pre-recessionary levels.

 “The indexing is a vital exercise,” continues Rick, “as it shows that fleet operators are still getting a better deal than before the economic downturn, and the leasing sector’s overall confidence in future markets is continuing to improve.”