Car leasing is no longer a niche market. More and more users find long-term rental a comfortable, economical and viable mobility option. According to the Spanish Leasing and Renting Association (AELR), in the last five years, the park and investment have doubled and customers have quintupled. It is a pronounced acceleration that shows no signs of stopping: AELR numbers show that turnover has gone from 5,517 million euros in 2019 to 7,995 million at the end of 2023.
Ángeles Roca, marketing and business development manager at Alphabet Spain, believes that there is “an evolution in consumer trends” that has driven this growth: “People are increasingly familiar with subscription payment services. “Leasing offers convenience and simplicity, including all services such as maintenance or insurance.”
KIA Renting’s fleet and leasing manager, Carlos Maside, believes that in recent years there has been a change in the social mentality about how services are enjoyed, which has also affected the world of cars. “The sense of ownership of goods is becoming less and less, and in relation to mobility, being able to move from point A to point B in the most comfortable and practical way possible is beginning to be valued more and more.”
The spokespersons for the different companies consulted agree that the convenience of rental is a key factor, since in addition to avoiding the commitment of a purchase, the companies offer maintenance, insurance and roadside assistance. Javier Collazos, general director of Santander Consumer Renting, adds that it “minimizes the risks” involved in purchasing a vehicle and is in line with new subscription consumption trends.
The economic factor is key, since renting is an option that companies consider more accessible. Juan Manuel Pino, country manager of CA Auto Bank for Drivalia Spain, points out that since the pandemic there has been a significant increase in vehicle prices due to inflation and new types of engines. “The customer now thinks long and hard before purchasing a car.”
According to the data provided by the company Leasys, the share of total rental registrations went from 26.51% in March 2023 to 27.72% this year. “It is booming and much more so in certain segments, such as commercial vehicles,” says Alejandro Barrau, commercial director. Barrau also attributes the increase to the fact that clients, companies and individuals, are gradually leaning towards other acquisition formulas compared to traditional purchasing, which he believes is clearly out of use: “Pay-per-use, subscription and rental to “Medium or long term are formulas that better adapt to the needs of customers and new mobility trends.”
The customer now thinks a lot before purchasing a car due to the increase in prices.
Juan Manuel Pino, CA Auto Bank for Drivalia Spain
According to Banc Sabadell, in addition, the market in the first four months of 2024 grew by 16% compared to the previous year, which is why it continues “a trend of strong growth.” Ricard Castells, director of Renting Auto Banc Sabadell, points out that the main challenges of the sector are digitalization, sustainable mobility and product flexibility. For the CEO of Yoyomove Spain, Giorgio Birzo, the next step will be to expand the audience: “It is important to know how to explain the product and educate the potential customer about this new mobility system.”
Fleet renewal
For Roca, from Alphabet Spain, the different legislation that has been approved in recent years, such as emissions reduction objectives, has favored the growth of the sector. “Renting vehicles are renewed more regularly, so their users can count on an updated car that complies with current environmental regulations,” he says. All the companies consulted highlight the importance of the transition to electricity and say they are willing to increase this fleet. It will be the main challenge for the sector, according to Roca.
Users can count on an updated vehicle that complies with environmental regulations
Ángeles Roca, Alphabet Spain
Birzo, from Yoyomove Spain, points out that the electricity share is still low in Spain, but that customers are prepared for the transition and electric car rentals are increasing drastically. “Right now we offer electric and plug-in hybrid vehicles in the country. The penetration rate, however, does not exceed 20%,” he points out.
The director of Auto Renting at Banc Sabadell believes that more and more users feel “the need to collaborate in the improvement of the planet”, which is why the option of renting an electric vehicle will grow.
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