Romania’s operational leasing market gains 3.5 percent in Q1 to over 41,700 units, says ASLO

Over 2,200 vehicles have been registered through operational leasing in the first quarter, holding an 18 percent share of the total cars and light vehicles registrations, while the market is estimated to reach some 45,000 units this year, according to the Association of Operational Leasing Companies (ASLO).

Bogdan Apahidean, ASLO president up to April 18, described the first quarter result as a stagnation of the market. He cited the weak economy, along with the falling car market and legal changes as factors that slowed down growth.

Starting April 18, ASLO members sworn in a new management team. Daniel Ivan executive director of Fleet Management Services, is the new president of the association. Bogdan Apahidean, general director of LeasePlan Romania and Radu Manea, director of Porsche Mobility, have been voted vice-presidents. During the same meeting, AON Romania, an insurance-reassurance broker, was granted ASLO membership.

Daniel Ivan, ASLO president, commented that Romania’s car market has been significantly impacted by the fiscal provision regarding the limitation of depreciation deductibility and the enforcement of the environmental stamp.

The industry is also facing unfair competition from unregistered second hand traders that aren’t paying any taxes.

“By imposing dumping prices on the second-had market, illegal operators determine the reduction of prices bearing VAT and profit tax for fair operators, which results in ten of millions of Euros that are not collected yearly to the state budget,” said Ivan.

The five largest ASLO members are LeasePlan Romania, ALD Automotive, Porsche Mobility, Arval Service Lease Romania and RCI Finantare. The domestic operational leasing market hovers around EUR 300 to EUR 350 million.