In 2020, total new business volumes declined by 13.4% compared to 2019, while the outstanding portfolio remained relatively stable among the reporting member associations, according to preliminary data from Leaseurope.
The trade association representing the European leasing and automotive rental industries also reported that new business volumes for vehicles fell by 14.2% in 2020.
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Albeit at a slower rate, equipment leasing was also down by 10.4%. Among the main asset categories, real estate leasing underwent the highest downturn of 22.9%.
Most of the national leasing markets across Europe saw deteriorating results, with about two-thirds of countries recording double-digit declines in 2020 compared to the previous year.
The Baltic countries, Croatia, Portugal and Spain endured the biggest losses, with total new leasing volumes falling by over 20%.
In contrast, Ukraine, Turkey and Greece were the only countries indicating growth in new volumes in 2020 while picking up from low levels reached in past years.
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By GlobalDataJurgita Bucyte, a senior adviser in statistics and economic affairs for Leaseurope, said: “In early 2020, the European leasing and automotive rental market seemed poised for another year of growth, however, the preliminary 2020 results show that it was inevitably hampered by the severe impact of the lasting Covid-19 pandemic on economic and social activity globally.
“A downturn in new leasing volumes was widespread across national markets and asset types. Thus far in 2021, as persisting pandemic-related uncertainty and restrictions weigh heavily on investment, European lessors have continued to work their way through the pandemic by leveraging strengths to provide much-needed asset financing to facilitate business recovery,” Bucyte said.
Leaseurope said it will publish final, comprehensive figures for 2020 once its full annual survey of member associations is complete in the coming months.
In March, Leaseurope reported that total new leasing volumes in Q4 2020 dropped by -4.2% in comparison to the same quarter of the previous year.
