Why vehicle leasing is becoming more and more expensive

No one will be surprised if we mention the fact that the prices of almost everything are increasing in France. Prices for new cars are no exception, both for purchase and rental. The fault lies in a simple aspect: the rising interest rates of the European Central Bank (ECB).

Indeed, commercial banks borrow their money more expensively. This forces them to lend more expensively to businesses. And so on, all the way to the customer. The last domino, which sees its bill rise and cannot do much about it. As evidenced by the representative of a French manufacturer at Parisian :

“[L’augmentation est] the fault (…) of the European Central Bank, which continues its policy of fighting inflation with a rise in key interest rates.”

What recourse for consumers?

Drivers therefore regularly find themselves faced with increasing offers. Faced with this, there are not many recourses. Some simply have to change brands to something less exclusive. Others are moving towards lower end models.

It is also possible to adjust, in particular, the duration of the contract. This is to absorb part of the monthly increase. But also to better calculate the resale value, which can consolidate the leasing economic model. Spending time determining exactly the right parameters (duration, intake, rate, etc.) would make it possible to absorb part of these increases.

In the meantime, rates are “only” 3 or 4%, whereas they were around 1% in the recent past. However, in the 80s, these were around 10 to 15%. Which was much more colossal. However, a period of inexpensive financing is clearly over.

Which is not enough to delight the government. In fact, this does not help it to set up its social leasing offer at €100/month. On the customer side, however, manufacturers have not yet noticed a slowdown. Discontent is growing, however.

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