Leasing market grows by 10 percent

According to the Association of German leasing firms (BDL) the leasing business with regard to movables grew by 10% in the first half year of 2007 and thus developed very positively. The business in the second quarter developed particularly positively and grew by 11% as compared to the same quarter last year.

Above average grew the business in machinery which increased by 22%. After a somewhat week year 2006 and despite less new car registrations in the first half of 2007 the passenger car leasing business was up by five percent. Passenger and estate car leasing, which are the driving forces in the leasing market, grew only slightly by one percent in 2006. This was due to the VAT increase at the beginning of 2007. Car dealers had then recommended payment by installments to their customers instead of leasing. Now the leasing business is catching up on these lost deals, says BDL.

The leasing business with regard to utility vehicles developed above average, as had already been the case in previous quarters, and grew by 14%. Also very dynamic is the growth in the field of medical engineering. The share of medical engineering in the overall leasing market amounts to one percent and is still a relatively small market segment. It comprises medical equipment, laboratory equipment and other equipment for freelance physicians, rehabilitation centres, hospitals and practice partnerships. In the opinion of BDL there is still potential in all these areas. GERMAN