© AFP
The annual Autofestival in Luxembourg reveals a growing trend towards vehicle leasing, with nearly a third of new cars being leased, a trend driven by the ease of maintenance and insurance, and the increasing popularity of electric vehicles.
Luxembourg's annual 'Autofestival' not only gives people the opportunity to learn more about the latest models and technologies, but also to evaluate the most affordable means of financing a private vehicle. And it appears that leasing is becoming an increasingly popular option, a trend that can in fact be observed all across Europe.
This means that fewer people actually own the vehicle that they are driving. In exchange for a monthly fee, leasing companies take care of insurance and maintenance, a relief for many motorists looking for a hassle-free driving experience.
About 55,000 cars currently on Luxembourg's roads are leased, which represents about 12% of the entire national fleet. "Last year, out of 44,000 newly registered cars in Luxembourg, about 16,000 were used in operational leasing. That means close to a third of new cars are leased", explained Gerry Wagner from the House of Automobile in conversation with RTL.
Private leasing has only existed for a little over ten years now. "The trend really started in Luxembourg in 2018. At first slowly, then progressively, and exponentially. But, today it has become even faster. The progression from 2021 to 2023 is a plus of 45%", elaborated Dominique Roger, CEO of ALD Automotive Luxembourg.
According to Wagner, the inception of electric cars has significantly contributed to the leasing popularity spike as people are still unfamiliar with the technical specifications of EVs or what to do with the car after a couple of years. For companies, on the other hand, the tax breaks and government subsidies for electric cars what makes them the most attractive option.
