Industry Threats & Opportunities
- As the economy improves and corporate bottom lines stabilize, businesses may purchase new company fleets outright instead of leasing them
- The industry immediately benefited from the explosion in corporate profit in 2012
- Better financial circumstances will work against fleet leasing companies somewhat ... purchase to read more
Industry Analysis & Industry Trends
Over the five years to 2016, the Fleet Car Leasing industry has endured improved but still volatile demand for industry services as both business and government activity have alternately grown and slumped. In the latter half of the period, corporate profit began to slump. Conversely, government spending has begun increasing after years of austerity measures. The result has been hampered demand for industry services yet with some degree of hedging as no two major markets have slumped simultaneously over the five-year period. Over the five years to 2021, industry growth will slow but become less volatile.
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Industry Report - Industry Analysis Chapter
To bolster profit margins in a time of recovery, many companies made leasing vehicle fleets a higher priority, as leasing is less capital intensive in the short term than outright purchasing. In the public sector, however, government consumption fell at the federal, state and local levels, and many agencies or programs faced cuts to alleviate budgetary issues during the later stages of recovery. In particular, state and local government demand for leased vehicles fell substantially as many municipal and state government agencies adopted austerity measures to combat shrinking budgets.
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Additional Insights for the
Fleet Car Leasing
IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fleet Car Leasing Industry are Having new or fuel-efficient vehicles Ability to accommodate environmental requirements Market research and understanding
IBISWorld analysts also discuss how external factors such as Corporate profit and Government consumption and investment in the Fleet Car Leasing industry impact industry performance... purchase to read more