LeasePlan makes significantly more profit thanks to higher used prices

Photo: ANP

The Dutch lease company LeasePlan again did good business in the fourth quarter with the sale of used cars. Because the car sector is struggling to deliver new models due to the worldwide chip shortage, the car leasing company gets good prices for used cars.

LeasePlan announced in January that it would be acquired by the French lease company ALD for 4.9 billion euros. Together with ALD, which is almost 80 percent owned by the French bank Société Générale, the two companies will become one of the largest players in the field of leasing cars to companies and individuals.

LeasePlan closed the last quarter of 2021 with a net profit of 242 million euros. That is an annual increase of more than 400 percent. For the full year, net profit tripled to 1 billion euros. The profit figure is distorted by a book profit of 228 million euros on the sale of LeasePlan Australia and New Zealand and the spin-off of the car platform CarNext, which was put on its own feet in July.

LeasePlan sold 50,000 cars in the past quarter. That was less than the more than 67,000 vehicles a year ago, but the cars sold did yield more thanks to the higher prices. Turnover rose by more than 1 percent to 2.4 billion euros. For the full year, turnover increased by 5 percent to 9.9 billion euros.

LeasePlan’s order book reached a new record level despite the chip shortage slowing the delivery of some new cars. The lease company’s fleet grew by 3.3 percent to 1.8 million vehicles.

CEO Tex Gunning spoke of a record year for LeasePlan. The outlook is also very positive, according to Gunning, as the order book reached record highs. In terms of sustainable mobility, LeasePlan reports that more than one in four of the company’s cars is an electric model.

According to Gunning, there has been “never a better time” to get into the leasing industry because of “the megatrend” for auto subscriptions. LeasePlan is capitalizing on this growth by transforming from an analog to a fully digital business model, enabling the company to deliver all services digitally and at a digital cost.

LeasePlan makes significantly more profit thanks to higher used prices
Source link LeasePlan makes significantly more profit thanks to higher used prices

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