Rental with option to purchase (LOA) and long-term rental (LLD) represented 52.4% of registrations in 2022. And much more for certain premium or non-premium brands.
Becoming the owner of your car is no longer an ambition in France. According to Vehicle Registration System (VIS) data reprocessed by NGC Data, leasing surpassed sales for the first time in 2022.
Last year, 52.4% of new car registrations were thus following an LOA (rental with offer to purchase) or LLD (long-term rental) compared to around 30% in 2018.
More affordable monthly payments
An offer that concerns all types of customers, individuals and professionals alike. “The LOA only concerns individuals, even if some financiers offer the LLD to individuals. On the other hand, the LOA and the LLD are offered to companies”, explains an expert from NGC Data.
This increase can be explained by several factors: the rise in the price of new cars and a simplified acquisition model that includes services in a monthly subscription that is more attractive in terms of monthly payments than a conventional loan for individuals.
Data provided by NGC Data shows that all makes, models and ranges now go through this acquisition system. There are of course the premium brands (Mercedes, Porsche, Jaguar, Tesla or Alpine) which can thus attract new customers. But also more and more generalist brands like Renault, Peugeot, Toyota or Skoda.
long contracts
The leading group of star leasing brands consists of Mini, Seat and BMW. 68.2% of Minis put on the road last year were thus via a leasing offer, against 63.5% of BMWs, owners of Minis.
Other brands that practice leasing a lot: Seat (67.2%) and its sports label Cupra (59.6%). The latter is sold mainly in LOA, because it is preferred by individuals. In total, 18 brands distribute at least half of their models through rental than through traditional sales, such as Audi, Lexus, Smart or Land Rover.
Lower monthly payments
By renting, the user limits risk-taking and reduces acquisition and maintenance costs. In addition, he is no longer penalized by the loss in value of his purchase when reselling it to afford a new car. In addition, formulas make it possible to lower the monthly payments by opting for a long contract or by renting a used car.
“After one year of circulation, a vehicle can lose up to 30% of its value and 50% after 3 years while remaining in good condition. This is why it is often more economically interesting to opt for a leasing used”, explains the site transfertleasing.
The only constraint of leasing is that after the rental period, the car must be returned in an “acceptable” condition. Even if he is only a tenant, the user is responsible for it and to prevent it from being too degraded at the risk of having to go to the cash register at the end of the contract.
Despite everything, the leasing trend has continued to assert itself for years. In 2010, purchases with cash or conventional credit accounted for 92% of sales to individuals. This rate rose to 79% in 2015, to 59% in 2020 and then to 48% in 2022.
