A study by the Equipment Leasing Association (ELA) indicates that truck and trailer leasing companies now have an opportunity for market entry. A number of industry consolidations have led to a need for firms with adequate financial resources, according to ELA.
The qualities making the market desirable include a large customer base in need of financing, a large population of trucks and off-highway equipment both used and new, and a captive audience among dealers and end-users.
The study also projected the Class 8 market to return to levels of 200,000 through 2005.
Statistics gathered from the study show that the truck finance and lease market accounts for 9 percent of the Class 2 through Class 8 registrations; almost 9 percent of the Class 8 market is leased; and top 10 lenders hold 69 percent of all Class 6-8 registrations.
"There has been a dramatic shift in finance and lease from new equipment to used equipment," according to the study. "This shift has occurred in the past two years, with used equipment comprising the bulk of finance and lease packages, and there has been a decreased number of finance and lease lenders due to company closings and consolidations."
The study indicates that aggressive growth strategies are resulting in additional sales force hirings. These additions are helping financial institutions improve customer relationships.
Information comes from the Status & Outlook of the US Truck and Trailer Leasing Marketplace study that measures the size and scope of the finance and lease markets for commercial trucks and trailers, while detailing both current and future trends in the marketplace.
ELA chose MacKay & Company to complete the study, which included conducting research, interviewing key executives at major leasing companies and at truck and trailer dealers. The objectives of the analysis were to provide growth projection estimates, pinpoint and analyze future and current trends in the industry, determine success factors and challenges, identify major vendors, and provide and overview of the secondary market. The completed study includes analysis of vehicles in classes one through eight, profile of leasing companies, summary of interview findings, lender and equipment profiles and the future outlook.
To request a copy of the study, contact Kristina Boehk at 202-944-5181 or [email protected]. For more information on the leasing industry visit ELA online at http://www.elaonline.com or check out ELA's informational portal for financial decision-makers at www.leaseassistant.org.