The “leasing climate” at the turn of the year 2021/22

The turn of the year 2021/22 brings some changes, also in the leasing sector. The effects of the Corona pandemic, advancing digitalization and new legal regulations are having an impact on the “leasing climate”. In particular, the demand for electric cars and the increasing importance of sustainability are influencing the leasing market and its conditions.

Leasing is a popular financing method that offers many advantages. Companies and private individuals can afford modern and expensive goods such as cars or machinery without having to buy them outright. In addition, there are no high acquisition costs and the leased asset can be easily returned when the contract expires.

In the following, the most important changes and developments on the leasing market in 2021/22 will be examined in more detail. The focus will be particularly on the impact of the Corona pandemic and the importance of electromobility and sustainability.

Corona pandemic and its impact on the leasing market

The 'leasing climate' at the turn of the year 2021/22

The Corona pandemic is also impacting the leasing market. Companies in particular are suffering the consequences and putting their investments on hold. Private individuals have also become more cautious and are making fewer purchases. However, the pandemic has also led to increased demand for flexible leasing offers, as companies and private individuals rely on short-term and flexible solutions due to the uncertain situation.

Current situation on the leasing market at the turn of the year 2021/22

The leasing market in Germany is an important branch of the economy and reflects the current economic situation. In times of pandemic and economic uncertainty, the leasing climate is changing fast. At the turn of the year 2021/22, however, the situation on the German leasing market is relatively stable.

Currently, leasing contracts for commercial vehicles and IT equipment are in particular demand. Companies are using leasing contracts as a financing alternative in order to be financially flexible and to be able to make investments. Demand for mobility and digital solutions has not decreased as a result of the pandemic, on the contrary – it has increased.

  • Companies can conserve liquidity through leasing contracts and use needed equipment without large capital expenditures.
  • Leased assets can be more easily adapted or updated.
  • Leasing installments can be tax deductible.

Lessors usually also offer additional services, such as maintenance and insurance of the leased items. Particularly in times of crisis, it is important to be economically flexible and able to react quickly to market changes. Leasing contracts make this possible and will therefore continue to play an important role in the German market.

Forecasts for the coming year: the “leasing climate” at the turn of 2021/22

The impact of the pandemic on the economy has also affected the leasing market. But how will the “leasing climate” develop at the turn of the year 2021/22? Experts believe that leasing-dependent industries such as automotive and engineering will recover. Demand is also expected to continue in the area of electromobility.

However, financial challenges for lessees are expected to increase due to economic changes. To meet these challenges, lessors must adapt their offerings and provide more flexible options.

  • Increasing lease terms
  • Reduction in rates
  • Extension of contracts

Digital solutions such as online contracting and e-signatures are also expected to continue to grow in importance. Digitalization will primarily improve efficiency in the leasing process as well as customer loyalty.

Overall, 2022 is seen as a year of change in the leasing market. Companies must adapt to changing conditions and become both more flexible and more digital to meet the challenges of the future.

Impact of the Corona pandemic on the leasing business

Due to the Corona pandemic, the leasing business has suffered significantly in various industries. In particular, companies in the hotel and restaurant, retail, and event and travel industries struggled with massive sales declines. Many entrepreneurs have been forced to temporarily close their businesses or completely change their business model due to strict hygiene regulations. This has resulted in less investment in new products and assets, which has also impacted the leasing business.

Nevertheless, there are also industries that have benefited from the Corona pandemic and continue to actively enter the leasing market. The logistics industry, in particular, has seen a sharp upturn as online shopping and delivery services have surged. Companies in the medical and pharmaceutical industries have also increased leasing transactions in recent months to expand their capacity to produce medical devices, vaccines and protective equipment.

The “leasing climate” at the turn of 2021/22 will depend above all on the economic situation in the individual sectors. While some industries have seen significant sales increases again, there are still companies struggling with the effects of the pandemic. Therefore, it is important for lessors and lessees alike to carefully plan and adapt their decisions to the current situation. The opportunities for flexible contracting and quick decision making will be important in the coming months.

  • Another important factor for the “leasing climate” at the turn of the year will be the international economic situation. Larger companies that operate internationally will be particularly affected by the pandemic-related restrictions in various countries. Here it is necessary to weigh possible risks and mitigate them by diversifying business activities accordingly.
  • In summary, the Corona pandemic has had a major impact on the leasing business in recent months. Despite the difficult economic situation in some sectors, however, there are still opportunities for companies entering the market with new and innovative products. For the coming months, the key will be to react flexibly and quickly to the changing situation and mitigate potential risks.

The latest trends in the world of leasing

As 2021 draws to a close, it’s time to evaluate the leasing trends that will shape the leasing climate will shape in 2022. One of the current trends is the increasing popularity of electric vehicles. More and more companies are opting for climate-neutral mobility, and leasing is a flexible and economical alternative to purchasing in this respect.

Another trend is the various models of leasing that are being made available today. From the mileage volume to the contract duration, customers can conclude individual contracts and reduce their costs by adapting leasing to their needs. Short contract terms are also becoming more popular as companies look to make their fleets more flexible.

Another important trend in leasing is B2B online auction platforms, which are becoming increasingly important and are taking the marketing of lease returns to a new level. Here’s how companies can quickly and easily bid and sell their leased vehicles to get the best deal while reducing expenses.

  • Electric mobility
  • Flexible contracts
  • Short contract terms
  • Online leasing auctions

Overall, there are many new trends and developments in leasing. Companies should keep abreast of the latest developments to find the best deal for their needs while protecting the environment.

Recommendations for companies when drafting leases at the turn of 2021/22

As a business, it’s important to pay attention to certain factors when entering into lease agreements to minimize the risk of unpleasant surprises in the new year. First, you should research current leasing terms to determine if it makes sense for you to enter into a contract.

Another important consideration relates to the term of the contract. Since the economic situation is uncertain and there are still many imponderables, companies should choose the shortest possible term to be more flexible to changes. It is also advisable to include an early termination option.

In addition, companies should pay attention to the terms of the contract. It is important to read and understand all clauses and provisions carefully to protect themselves from potential risks. Companies should also ensure that all relevant costs and fees are transparently outlined to avoid unexpected expenses.

Finally, it is advisable to speak with several lessors and obtain multiple quotes. This gives you the opportunity to find the best terms and conditions for your company. By following these recommendations, you can ensure that you secure a suitable lease and set yourself up for a successful 2022.

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