The termination of contracts and deferred new company car purchases caused operational leasing sales to decline by around 22% in 2009, according to Datamonitor's initial estimates for the year. The future outlook is more upbeat, however, with the sector expected to show positive growth of around 5% in 2010, mainly driven by emerging markets in Europe.
With signs of recovery in the average residual value of end-of-contract cars, the fleet market is expected to witness a surge in renewals of operational leasing contracts that were taken out in 2009. State regulations and duty-of-care laws enacted by various governments in the EU will further boost the demand for these cars, as companies are expected to outsource their non-core activities to minimize any legal obligations.
