While a year ago the restriction caused by the coronavirus significantly reduced leasing volumes, this year’s March and April were peaking months for LHV leasing. Leasing for used cars is especially popular. Due to the season, the watercraft market is also currently active.
According to LHV’s Head of Leasing Department Erki Link, it is noticeable that the fears of leasing clients about the future have disappeared. ‘This spring, namely in March and April, it can be seen that for most clients the crisis is essentially over and most people managed to escape the dreaded hardships. When looking at today’s number of applications, especially for used vehicles, for example, we can see a high level of activity similar to home loans, as there were half more leasing applications in March and April than last year. Based on the Q1 data, the financing of the vehicles in the leasing market as a whole increased by 13% year-on-year, and the financing of machinery and equipment by 19%,’ Erki Link said.
In retrospect, it can be said that the measures for catching breath offered to clients really worked. Few clients ended up in debt during the difficult times, and this year has hardly brought additional grace periods requested by clients,’ Link added.
The volume of LHV’s leasing portfolio is 133 million euros, referring to an increase of 39% over the year. While the portfolio of machinery and equipment grew by 63% year-on-year, the share of vehicles by 23%, with a particularly large increase in the share of watercraft, the portfolio of which almost doubled over the year (+91%).
According to Erki Link, activity in the leasing market is expected to continue. ‘The increase in customer confidence is primarily reflected in one of our main businesses, i.e. the acceleration of the purchase of used vehicles. Before summer, people also look more towards the purchase of watercraft, and we also expect a large increase in the field of electric cars. If so far machinery and equipment have been leased to the same extent as last year, the investment activity of companies is expected to increase as well,’ Link added.
LHV Kindlustus now offers motor third party liability insurance and comprehensive insurance products for leased vehicles. It is the best and most extensive insurance cover, which guarantees safety and comfort. LHV offers a separate package for green vehicles – Roheline Kasko.
Another important innovation in LHV’s leasing is an offer for selected electric cars, which clients can lease with a standard monthly payment, but without self-financing. With the offer, LHV wants to improve the availability of electric cars.
Read more: lhv.ee/liising
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. LHV employs over 560 people. LHV’s banking services are used by nearly 274,000 clients, the pension funds managed by LHV have nearly 177,000 active clients, and LHV Kindlustus protects a total of 128,000 clients. LHV’s UK branch offers banking infrastructure to 150 international financial services companies, via which LHV’s payment services reach clients around the world.All news