Asset Leasing Statistics


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Asset Leasing Statistics 2023: Facts about Asset Leasing outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Asset Leasing, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

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Top Asset Leasing Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 31 Asset Leasing Statistics on this page 🙂

Asset Leasing “Latest” Statistics

  • From 2020 to 2027, the enterprise asset leasing market is anticipated to expand at a CAGR of 12.3%.[1]
  • The size of the worldwide enterprise asset leasing market, which was estimated to be $820.27 billion in 2019, is expected to increase by 12.3% CAGR from 2020 to 2027 to reach $1.76 trillion.[1]
  • The biggest section of the leasing industry by type, accounting for 36.6% of the entire market in 2021, is lessors of nonfinancial intangible assets.[2]
  • According to information from financial statements included with Canadian corporate enterprises’ tax filings, between 2000 and 2008, tangible assets subject to financial leases made up 25% to 30% of tangible capital stock.[3]
  • According to the CAPEX definition in 2008, the capital stock of the business sector’s fixed assets owned by GBES made up 81% of that capital.[3]

Asset Leasing “Rent” Statistics

  • Standard interest rates vary from 6% to 9%, and typical contracts last between 24 and 72 months.[4]
  • Financial Leasing Market size is estimated that the market will grow significantly in the forecasted period i.e. 2021 to 2028.[5]
  • The SNA 2008 states that payments received under an operating lease are recognized as payments for services and are referred to as rents.[3]
  • On average from 1997 to 2008, the net rental revenue earned by the industry represented 26% of its value added and 48% of its capital income.[3]
  • For the utilities industry and wholesale commerce, respectively, the proportions of net rental income in value added and capital income were 20% and 27%.[3]

Asset Leasing “Lease” Statistics

  • Lease finance covers 100% of the necessary payments for an equipment acquisition.[4]
  • Dealer rates might vary greatly, generally speaking, the typical APR for an operating lease is 5% or less.[4]
  • For new and small companies, factoring is a great substitute for leases and loans since it may typically pay up to 90% of the entire value of your accounts receivable, depending on the creditworthiness of your clients.[4]
  • 79% of US businesses utilize finance loans, leases, and lines of credit, but not credit cards, to buy equipment.[6]
  • Between 2000 and 2008, the proportion of net leased-in capital climbed by 34 percentage points for professional services and by 35 percentage points for lodging and food.[3]
  • More than 14% of the total capital used in retailing and more than 90% of the total capital used in lodging and food were funded by net leased capital.[3]
  • In the fire business on average from 2000 to 2008, net lease-out capital made up more over 80% of all capital utilized. This percentage remained constant over time.[3]
  • The minimum lease payments often equal 90% or more of the leased property’s market value at the beginning of the lease, minus executor fees.[3]
  • Average net leased-in capital to total capital employed ratios for the industries of agriculture, mining, utilities, construction, and manufacturing were 7%, 2%, 4%, 13%, and 6%, respectively.[3]

Asset Leasing “Other” Statistics

  • In 2008, close to three tenths (29 %) of all persons (aged 16 to 74) in the EU-27 used the Internet for banking, a share that was close to one half (47%) when limited to Internet users.[7]
  • In employment terms, the most specialized Member State in this sector was, by far, Luxembourg, where 13.8% of those employed within the business economy were working in financial intermediation excluding insurance and pension funding.[7]
  • During 2020–2027, the Asia–Pacific area will have the highest CAGR of 14.9%.[1]
  • In the US, the average cost of a new automobile rose from $35,742 to $36,718 in 2019 due to interest rates that were respectively 6% and 2% higher than in 2018.[1]
  • The IT and Telecom category will see the greatest CAGR between 2020 and 2027, at 15.8%.[1]
  • The market will be dominated by the SMEs sector between 2020 and 2027, with a CAGR of 13%.[1]
  • Companies set aside 1% to 3% of revenues for maintenance expenses.[4]
  • It’s common for banks and other lenders to demand a substantially greater down payment—up to 20% of the equipment’s entire cost.[4]
  • Rates will rise above 5% in 2023, and potentially higher.[8]
  • The market for leasing automotive equipment is anticipated to expand at the quickest rate between 2021 and 2026, with a CAGR of 14.7%.[2]
  • At a CAGR of 12%, the leasing industry is anticipated to reach $2.4 trillion $1.77 trillion in 2026.[2]
  • According to Andrew and Gilstad, other variables may potentially have an impact on leasing choices.[3]

Also Read

How Useful is Asset Leasing

One of the primary advantages of asset leasing is the cost-saving element it offers to businesses. Instead of making a hefty upfront investment in purchasing equipment, companies can opt to lease assets for a fraction of the cost. This allows businesses to allocate their financial resources more efficiently and use the capital saved for other investment opportunities or operational expenses.

Another key benefit of asset leasing is flexibility. Leasing agreements typically have terms that are more flexible than traditional financing options. Companies can customize the terms of a lease to suit their specific needs, whether it be the duration of the lease, the payment structure, or even the option to upgrade to newer equipment during the lease period. This level of flexibility can be particularly advantageous for businesses with fluctuating needs or those operating in industries with rapidly changing technology.

Moreover, asset leasing also eliminates the burden of ownership. When a company purchases assets outright, they are responsible for maintenance, repairs, and ultimately the disposal of the assets once they are no longer needed. With asset leasing, these responsibilities typically fall on the lessor, relieving the lessee of this added overhead and allowing them to focus on their core business operations.

Additionally, asset leasing can also offer tax advantages to companies. Lease payments are often considered operating expenses and are therefore tax-deductible. This can provide businesses with a significant tax benefit, especially in the initial years of a lease when lease payments may make up a larger portion of expenses.

While asset leasing offers many benefits, it is important for businesses to carefully consider their specific needs and circumstances before opting for a leasing arrangement. It’s crucial to evaluate the total cost of leasing versus purchasing, including any potential hidden costs or fees associated with leasing. Additionally, businesses should assess the long-term implications of leasing on their financial health and consider whether leasing aligns with their overall business strategy.

In conclusion, asset leasing can be a valuable tool for businesses looking to access the equipment they need while maintaining financial flexibility and cost efficiency. By weighing the pros and cons of leasing and making an informed decision based on their unique circumstances, businesses can effectively leverage asset leasing to support their growth and success.

Reference

  1. alliedmarketresearch – https://www.alliedmarketresearch.com/enterprise-asset-leasing-market-A10318
  2. leasinglife – https://www.leasinglife.com/news/global-leasing-market-may-reach-2-4-trillion-by-2026/
  3. statcan – https://www150.statcan.gc.ca/n1/pub/15-206-x/15-206-x2014036-eng.htm
  4. businessnewsdaily – https://www.businessnewsdaily.com/8083-equipment-leasing-guide.html
  5. verifiedmarketresearch – https://www.verifiedmarketresearch.com/product/financial-leasing-market/
  6. elfaonline – https://www.elfaonline.org/about/industry-overview
  7. europa – https://ec.europa.eu/eurostat/statistics-explained/index.php/Archive:Financial_credit_and_leasing_sector_statistics_-_NACE_Rev._1.1
  8. leasefoundation – https://www.leasefoundation.org/industry-resources/u-s-economic-outlook/

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