From January 2022, Experteye has developed a Car Leasing Index for new full-service leasing contracts. It is based on major leasing companies leasing rates and can be considered as a good representation of the market trends (over 17.000 leasing prices per month).
The index includes financing and key services as maintenance and assistance and therefore reflects a combination of new car prices, incentives, residual values, aftersales costs and interest rate variations. Each leasing parameter as mileage-durations, taxation, model-mix have been retreated, to provide a very precise and realistic picture of the market price evolution.
![Car leasing price index trend France June 2022](https://experteye.com/wp-content/uploads/2022/06/Car-leasing-price-index-france-ytd-2022-06-prices-updated-1-1024x512.png)
Leasing prices increased more than consumer prices in the last 6 months
At the end of June, the index stands at +9.1%, when official price index has moved from 109.1 to 114.1 (representing 4.65 points increase). It means that leasing prices have increased by 9.1% during the first 6 months of the year while consumer prices went-up “only” 4.25%. This is understandable considering that OEM have drastically reduced their discounts while three years interest rates swap became positive at the end of January (-0.16% 31/12/2021) and has reached 2.0 % at the end of June. Leasing companies are generally refinancing their contracts over three or four years.
Prices evolution favours fleet electrification
We can see a massive increase of prices from March onward and a major acceleration in April (+5.5%) which might be explained through a quarterly adjustment from leasing companies facing substantial refinancing costs increases.
Nevertheless, we observe an interesting movement penalising Diesel with 11.1% increase while electric increase by 7.9%. Most leasing companies are willing to support the transition toward electric vehicle and their pricing policy is certainly the best way forward.
![Car leasing price index trend France June 2022](https://experteye.com/wp-content/uploads/2022/06/Car-leasing-price-index-trend-France-2022-1-1024x514.png)
Pascal Serres
Board member at Experteye.
Board member at Nexus communication.
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