The local leasing market plunged 74% in H1

“We estimate a decline of a minimum 65 percent for the entire year, although now we are at 74 percent. We could revise the estimates downward in connection with the evolution of the market in 2009, but must not be very optimistic, because we are still in the midst of a crisis period and should come out of this year on our feet,” Boloux said.

Industrial and agricultural equipment financing registered the sharpest drop, of 82 percent, down to €117.3 mln. This segment is followed by that of car financing, which fell 76 percent, to €507.1 mln.

Boloux said that 16 leasing companies recovered more than 2,033 vehicles in the first half of this year from their default clients. “Regarding the recovered automobiles, the leasing companies rarely have gain from these, because of the administrative costs. The longer you hold onto a good, the more you lose. It all depends on how fast you sell a car,” ALB’s President indicated. He estimates that the sale price of second-hand cars has fallen by some 30 percent compared to 2008.