Six out of 10 Greeks prefer car leasing or renting, as opposed to purchasing, due to the high costs involved in buying a car, according to a report at Ta Nea.
Only 33% of approved consumer loans in Greece relate to the purchase of a new car, leaving those rejected with no other option than renting or certain forms of short-term lease, where credit criteria are more lenient, says Ta Nea.
Moreover, official data shows that six out of 10 cars new cars in Greece are leased.
The upward trend for this sector is fairly new, and as a result only 5% of vehicles on the road are leased. It’s impact has already lowered the average age of leased vehicles in the country.
Specifically, the average age of leased vehicles is 2.9 years while the average age of privately owned vehicles is 17.3 years. Previous reports have highlighted that Greece has the oldest fleet of privately owned vehicles in Europe.
Ta Nea details that the primary driver for the switch to short-term leases is due to the fact that there is no need for a downpayment, and lease payments are relatively low. Used cars up for lease are discounted even further.
Other reasons cited by Ta Nea include the fact that maintenance costs, insurance, and damages are included in the cost, which spares the leasee from unpleasant and costly “suprises”.
And of course, business owners can reduce their tax exposure through car leasing.
While long-term leases have been around for many years, the move towards short-term leases and flexible leases from 30 days to a year, outside of the summer season, is a new trend for Greece.
