Promising Vehicle Leasing Market in North & Latin America
2018-11-20 11:10 Tuesday
Leasing offers drivers the opportunity to obtain high-end cars without the commitment of an expensive purchase. The convenience and flexibility provided by car leasing have made it an attractive option for many consumers. Projections note that the North American car leasing market will remain dominant, accounting for 45.9% of all global revenue by 2027. Latin America, an emerging market, is also expected to grow substantially over the next decade.
Major players in the global car leasing market include Enterprise Holdings Inc., The Hertz Corporation, Avis Budget Group Inc., Europcar S.A., Carzonrent India Pvt Ltd., Sixt Rent a Car, Al-Futtaim, Localiza Rent a Car S / A, Eco Rent a Car, and GlobalCARS.
As two of the most promising markets for car leasing, North America and Latin America offer abundant opportunities for car leasing and rental firms around the world.
"Only 0.5% of the cars sold in Colombia are done through leasing. About 14% are leased in neighboring Brazil and 26% in Europe so you can see the growth potential," said Murssa Junior, General Manager for the Brazil unit of Traxall, a fleet management firm.
Traxall manages nearly 4,000 cars in Latin America and 170,00 worldwide. In Latin America, it has a presence in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, and Peru. In Brazil alone, Traxall plans to increase the size of its fleet to at least 7,000 cars within the next few years.
Compared with Latin America car leasing market, the North American market is much more mature.
One of Canada's leading vehicle leasing companies, Somerville National Leasing and Rentals Ltd., recently acquired Zeemac Vehicle Lease Ltd. which is based in Burnaby. The acquisition won't dramatically affect Zeemac's operations and business profile. The company will continue to operate under its previous name and keep its concentration on delivering technologically-advanced fleet management solutions to businesses of all sizes.
"We are fortunate to have the opportunity to acquire such a well-established player within the vehicle leasing and fleet management industry. Zeemac has become a leader in providing high-tech fleet solutions to a very diverse range of industries through their unique business analysis processes and we're very excited to add Zeemac to the Somerville family," said company president, Bill Somerville.