At the end of 2009, companies will be managing 155 thousand cars

The Car Fleet Management industry will be one of few that has opportunities for growth in the economic downturn. Total volume of managed cars might reach a level of 135 thousand. Industry representatives are counting on entrepreneurs treating long term lease as a way to improve liquidity of their companies.

On the other hand, demand on individual managerial services without financing is lower. Instead of cash or credit (that is hard to obtain) vehicle purchases and treating cars as assets, companies nowadays prefer to lease. Some of them are already utilizing the so-called reverse leasing, wherein they sell their cars to a CFM company and then lease them back form monthly payments. This way the company gets cash.
Companies that already have professionally managed fleets seek opportunities to cut costs, too. That is why they resing from management-only options that do not include car purchase financing. Another effect that can be observed is prolonging leasing duration. This enables entrepreneurs to pay less monthly by way of rent.
Prolonging usage of leased cars is also a result of the entrepreneurs waiting for clear regulations on VAT and the potential environmental tax. Only upon receiving specific regulations will they be able to take decisions on which vehicles to purchase. As for now, they often order cars with so-called luggage partitions, even though it is unclear whether regulations allowing deducting 100% of VAT on car and fuel purchases will be upheld. The CFM industry expects some decisions to be publicized in second half of the year. It also counts on individual customers after new regulations on consumer leasing appear.

23 percent

growth in number of vehicles managed by CFM companies in 2008

10 percent

growth forecast for 2009