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KW: How do you assess the demand for auto leasing today in Ukraine?
S.L.: The auto leasing market continues to actively grow. This proves that consumers get what they need from today’s leasing programs. Leasing has become a necessity for majority of big companies as it allows them to resolve a number of administrative and technical tasks without using their own resources.
KW: Which factors foster auto leasing in Ukraine and which of them slow it down?
S.L.: This market is growing thanks to the systemic work of its players in seeking sources of financing, new clients and devising and implementing marketing programs that promote the company’s products and the market on the whole. In addition, organizations that lobby the interests of the sector on the state level are making a positive contribution. Among those factors that slow down the market are legislative inconsistencies, limitations on hard currency loans and insufficient information about the company on the advantages of leasing products.
KW: What the main advantages and disadvantages of auto leasing compared, for example, with the purchase of automobiles on financing programs?
S.L.: First of all, auto leasing with Avis envisages a broad spectrum of service support. This is not just about insurance and registration with the State Auto Inspection Bureau, but the fact that leasing companies offer full technical servicing, the use of fuel cards, technical assistance in cases of highway accidents, etc.
In other words, clients that sign up for a leasing program with full services do not have to deal with any technical issues. This is the concern of the leasing company.
KW: How has the activity of leasing companies evolved or transformed during and after the financial crisis? Specifically, how has their format and terms of cooperation with car manufacturers and consumers changed?
S.L.: In truth, due to the limitation of crediting in hard currency during the crisis only those leasing companies that either represent the interests of carmakers or are in fact banking structures (both, in essence, offer alternative financing programs), or companies that are backed by foreign investments and offer leasing with service (for example, AVIS) have survived on the market.
The absence of hard currency financing is what attracted car dealers to us. After all, leasing companies serve as an instrument of car sales.
KW: What is your vision of the prospects of auto leasing on the Ukrainian market?
S.L.: The prospects of auto leasing in Ukraine can be evaluated using other countries as an example. In Israel with a population of 7.5 million, for example, the fleet of AVIS rent-a-cars is 30,000. The future is bright, though you must understand that such indicators in the future are possible only on condition of civilized market development, simplified tax legislation and a stable political situation in the given country.
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