21.07.2020 / Leasing contracts terms

According to Russian Automotive Market Research, in January-June 2020, 78.4 thousand vehicles and trailers were transferred under financial leasing^[1], which was a 27% decline year-on-year^[2]. 

Depending on the terms, leasing contracts can be divided into:

   • short-term contracts concluded for a period of less than one and a half years;
   • medium-term contracts concluded for a period of one and a half to three years;
   • long-term contracts concluded for a period of three years and more.

There is a trend to increase the terms of leasing contracts in the financial leasing of commercial vehicles – trucks, buses and trailers: in the first half of 2020, the share of short-term transactions decreased on the first half of 2019. The share of short-term deals in the car and LCV leasing, on the contrary, increased.

Following results of the first half of 2020, the most common leasing contracts for vehicles and trailers were those concluded for a period of one and a half to three years. The only exception was buses. In January-June 2020, leasing contracts for buses were most often concluded for a period of three years and more.

Vehicle leasing contracts by term

Source: Federal resource, Russian Automotive Market Research

Following results of the first half of 2020, lessees purchased 10.3 thousand special purpose vehicles, which was a 4% rise on the same period of 2019. In January-May 2020, the number of leased water vehicles decreased by 6%, air and rail vehicles - by 70% and 74%, respectively.

Leasing contracts for special purpose vehicles are most often concluded for a period of one and a half to three years: in the first half of 2020, their share grew to 47.5%.

The majority of leasing contracts for rail, air and water vehicles are concluded for a period of more than three years. However, in January-June 2020, the share of such transactions decreased year-on-year.

Leasing contracts for other vehicles by term

Source: Federal resource, Russian Automotive Market Research