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 key benefits of asset leasing is the flexibility it offers. Businesses can choose from a variety of leasing options, including capital leases, operating leases, and sale and leaseback arrangements, to suit their unique requirements. This flexibility allows companies to tailor lease agreements to their financial constraints, tax considerations, and operational requirements, making it a versatile solution for businesses of all sizes and industries.

Another advantage of asset leasing is the ability to easily upgrade or replace equipment as technology advances or business needs change. With leased assets, companies can avoid the hassle and cost of selling off outdated equipment and procuring new assets. This can be particularly beneficial for industries where technology evolves rapidly, such as IT, healthcare, or manufacturing, as leasing provides the opportunity to stay current without committing to long-term ownership.

Asset leasing also offers potential tax advantages for businesses. Lease payments are typically considered operational expenses rather than capital expenditures, which can have a positive impact on a company’s tax liability. Additionally, leased assets are not typically subject to depreciation, which can be advantageous for businesses looking to reduce the administrative burden associated with asset management.

However, it is essential for businesses considering asset leasing to carefully weigh the costs and benefits of this financing option. While leasing can provide immediate access to assets without depleting cash reserves, it can also be more expensive in the long run compared to purchasing outright. Companies must consider factors such as interest rates, lease terms, and hidden fees when evaluating the overall cost of leasing compared to ownership.

Furthermore, businesses should be mindful of the potential risks associated with asset leasing. Leasing agreements may come with strict terms and conditions, including restrictions on asset use, maintenance requirements, and penalties for early termination. Companies must fully understand and adhere to these terms to avoid potential legal and financial consequences.

In conclusion, asset leasing can be a useful tool for businesses seeking to acquire assets efficiently and affordably. Its flexibility, convenience, and potential tax advantages make it an attractive financing option for many companies. However, it is crucial for businesses to conduct thorough due diligence and consider all factors before entering into a lease agreement to ensure that it aligns with their financial goals and operational needs. Ultimately, the decision to lease assets should be made strategically and in consideration of the long-term implications for the company.

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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