Covid-19 significantly jolted the economies and businesses of all kinds. Things are getting back on track, now that, it has been almost a year. And we are gradually becoming habitual of living this NEW NORMAL. COVID-19 evolved as such a key variable that changed the dimensions of the businesses. Businesses that were not ready to handle the situation of crisis failed miserably in sustaining the power relation within their organizations and with the customers. Small businesses, especially, fell prey to the deadly pandemic.
Covid-19 And Its Impact On the Car Leasing Industry:
Talking about how much the car leasing industry has been affected, it would be significant to say that the impact is not negligible. Since people were limited to their homes and the roads were almost empty, who would have availed of the car leasing opportunity.
A report regarding the auto-mobile rental and leasing market has categorized the business into two categories based on their yearly performance. It ascribes the Historic period to term 2015-2019 and the Forecast period to the term 2019-2023. The global automobile rental and leasing market were of worth $366.9 billion which in 2020, is expected to go down to $239.6 billion. It means the compound annual growth rate will be -13%. This is all due to the huge impact of COVID-19 on the car leasing industry.
Due to lockdowns, car leasing industries were closed because, neither full staff was there nor were the customers. The demand decreased significantly with the advent of COVID-19 but now things are getting stable and people are continuing their daily routine but with the precautions. In this crucial time, it is a great opportunity for car leasing businesses to make affordable and customer friendly offers to attract customers. The opportunities as cheapest car leasing in the UK are worth watchful in this regard.
Trends in Car Leasing Industry During the Pandemic:
There were two major trends observed in car leasing clients.
Extending the lease:
Due to delays in new lease vehicles, people opted for extending their existing lease.
Terminating the lease before time:
Those who were able to pay for terminating the lease chose to terminate their lease agreement before the deadline.
What for The Future?
The future of the car leasing business, as described in the report looks stable. It is estimated that the market will eventually recover in 2021. The market is expected to grow at a 15.06% compound annual growth rate. It makes it reach a market value of $421,3 billion by 2023. Another challenge that the car leasing industry is currently, and will in the future, find related to people’s reliance on the on-demand taxi services along with the COVID-19.
Every industry, be it small or large, has been affected in one or the other by the global pandemic. Though small businesses seemed vulnerable, big businesses needed adequate gear to cope up with the after-effects.