Contract hire is becoming big news not only across the UK but also within Europe too. Figures are on the rise and in particular within Germany and Denmark.
Leasing is another way of financing a car for a certain time period that is hugely popular in Germany because it is so tax efficient. Leasing details are subject to very strict contracts as the vehicle must be serviced properly, there is a minimum level of insurance required and it is difficult to end a contract mid-term.
Interestingly this month, the leasing of private cars has grown over the past year in Denmark, which is a huge 61% increase according to the most recent figures from Denmark Statistics.
Previously the figures were connected to individual connected businesses, but a trend is emerging that pin points the growth of the car leasing market towards private purchasers and individual clients.
Private leasing has grown and become more popular since 2007, when a massive 1,960 leasing contracts were signed.
In relation to this, 2010 has seen every tenth car now being sold on a leasing contract and during the past 12 months, approx. 8,700 leasing contracts were signed and sealed.
The Head of the Finance and leasing Association Christian Brandt told Jyllands Posten newspaper that a percentage of the leased cars on the Danish market have been increasing slowly in the past few years and with figures showing of between 10 and 13 percent. In comparison a similar trend has become apparent for car leasing in Scotland too. Figures have been rising with car hire companies in Scotland and private car leasing has had a major influence on final figures.