North America Car Leasing Market: Industry Analysis and Forecast (2024-2030) Trends

North America Car Leasing Market Definition:

In a lease, the owner grants the user the hassle-free use of the vehicle for a predetermined amount of time in exchange for recurrent payments. Leasing automobiles has been extremely popular in both developed and developing nations in recent years. It provides the user with a number of benefits, such as new automobiles every few years. Because lease payments are based on the car's depreciation over the course of the lease, rather than the car's full value, they are less expensive each month than payments for purchased cars. As a result, the customer can lease high-end and expensive automobiles instead of purchasing them. Recent changes in the automobile leasing market, such as on-demand vehicles with or without driver amenities, are forecast to be advantageous for the market.

 

Further, the North America Car Leasing Market is segmented by Application Type, Lease Type and geography. On the basis of Application, the North America Car Leasing Market is segmented under Business Use and Personal Use. Based on the Lease Type the North America Car Leasing Market is segmented under Open-End and Close-End. By geography, the market covers the major countries in North America i.e., US, Canada and Mexico. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

 

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North-America Car Leasing COVID 19 Insights:

Demand for car leasing services was hampered by lockdowns and restrictions. 

Due to the entire lockdown and travel restrictions brought on by the COVID-19 pandemic, the auto industry started to feel the effects of the coronavirus on their products and services in late March. Overall, more than 90% of people have started working at some point. Government-imposed strict social distance laws have fundamentally altered the business environment for leasing enterprises. The coronavirus epidemic has severely affected the North American area, which has caused a sharp decline in the market for automobile leasing. The pandemic has predominantly impacted the economies of both emerging and developed countries, leading to job losses, decreased monthly income, and uncertain employment.

 

North America Car Leasing Market Dynamics:

The Use of Big Data and IoT to Promote Growth 

The internet of things (loT) has been heavily utilised in recent years by leasing businesses to monitor and maintain fleets. With the aid of the integrated sensors, the IoT facilitates data transport and collection. As a result, businesses are able to acquire real-time data that makes it simple to diagnose cars when they break down. The use of a virtual key solution to lock and unlock the door reduces the need for many keys.

 

The Use of Big Data and IoT to Promote Growth 

The internet of things (loT) has been heavily utilised in recent years by leasing businesses to monitor and maintain fleets. With the aid of the integrated sensors, the IoT facilitates data transport and collection. As a result, businesses are able to acquire real-time data that makes it simple to diagnose cars when they break down. The use of a virtual key solution to lock and unlock the door reduces the need for many keys.

 

High car leasing costs will stifle market growth.

Gap insurance is one of the costs associated with car leasing. One of the biggest headaches for the customer is this gap insurance since it continues even after the lease period has ended. As the user makes a down payment and purchases insurance for a new vehicle, the cost of subscription renewal is added to the bill. Long-term leasing is an arrangement that the user loses money on since the dealer who owns the automobile suffers the expense of depreciation and can sell the car whenever he wants.

 

North America Car Leasing Market Segment Analysis:

By Application Type: During the forecast period, the business usage category is forecast to have the biggest market share for automobile rentals. For their senior executives, the majority of organisations have tended to hire automobiles. Employees may commute on their own thanks to this rather than using corporate transportation. The company provides team members with improved automobile rentals every 3 to 5 years. It allows the team member to keep the car until their contract with the company expires. When the company sends a brand-new automobile, this saves team members a significant amount of money. Per the research of the automobile rental industry, the personal usage category is forecast to have considerable market growth throughout the forecast period.

 

 

By Lease Type: During the forecast period, the open sales category is forecast to grow at the quickest rate. A financing lease is another name for an open contract. This type of lease calls for a one-time payment from the tenant at the conclusion of the term. A sum equivalent to the discrepancy between the fair market value and the surplus assets. This kind of lease is typically used for commercial purposes. 

 

Closed leases are forecast to have reasonable market growth. The sole demand of the user in this sort of rental is to drive the car from point A to point B. Hence, this rental agreement is mostly used for personal usage.

 

North America Car Leasing Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the market, key players in the market, particularly in this region, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the North America Car Leasing Market to the stakeholders in the industry. The report provides trends that are most dominant in the North America Car Leasing Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the North America Car Leasing Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the North America Car Leasing Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the North America Car Leasing Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the North America Car Leasing Market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the North America Car Leasing Market. The report also analyses if the North America Car Leasing Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the North America Car Leasing Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the North America Car Leasing Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the North America Car Leasing Market is aided by legal factors.

 

North America Car Leasing Market Scope:

 

North America Car Leasing Market
Market Size in 2023	USD 33.70 Bn.
Market Size in 2030	USD 50.68 Bn.
CAGR (2024-2030)	6%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Application Business Use Personal Use
	By Lease Type Open-End Close-End
Country Scope	United States Canada Mexico

 

North America Car Leasing Market Key Players: 

• Avis Budget Group (New Jersey, U.S.)
• Hertz (Florida, United States)