Swedbank: how the volume of environmentally friendly car leasing grew rapidly | Business

“Although the EURIBOR interest rate increased significantly last year, it did not significantly affect the plans of residents and companies regarding the purchase of vehicles – the market remained relatively active. In addition, higher interest rates partly encouraged more environmentally friendly cars, for which Swedbank applies a more favorable margin for financing, thus reducing the impact of increased interest rates. Hybrid cars accounted for about 26 percent and electric cars for about 7 percent last year. of all leased light vehicles,” says Monika Cemnolonskienė, head of Swedbank leasing.

During 2023, using Swedbank’s leasing financing, private and business customers purchased a total of 8.8 thousand. passenger cars, of which 2.9 thousand there were low-emission cars and electric cars. Last year, even 59 percent of environmentally friendly cars, including electric cars, were purchased through leasing. more than in 2022

Companies purchased almost 2 times more environmentally friendly cars

“Passenger car leasing services are used more often by residents and the number of new contracts they conclude is consistently growing every year. We are also observing a changing business attitude and increasing involvement in green transformation processes. Renewal of the car fleet according to sustainability standards is one of them. This trend is illustrated by the significant increase in the number of electric car and low-emission car leasing contracts signed by business customers last year,” says the representative of Swedbank.

If in 2021-2022 Customers of Swedbank’s leasing business purchased an average of 600 low-emission cars each year, and last year – as many as 1.1 thousand. such cars. This number included 281 electric cars last year, which is 69 percent. more than in 2022, when 166 such cars were purchased.

According to Swedbank, the most popular 2023 Toyota took first place among both business and private customers of leased low-emission cars. Cars from Škoda, Peugeot and Volkswagen are next in line.

Among electric cars, Tesla remains the most popular, more than 120 of which were purchased last year using Swedbank’s leasing financing, followed by Volkswagen, followed by Nissan and Audi electric cars.

According to the allocated financing, a total of 461 million In Swedbank’s car leasing portfolio, the share of environmentally friendly cars is 29 percent, and financing for electric cars only is 8.1 percent. or 37 million euros.

The average amount of leasing financing is 26 thousand. euros

According to M. Cemnolonskienė, the greatest influence on the popularity of low- and non-polluting cars is provided by incentives provided by the state, special financing conditions for environmentally friendly cars, the increasing choice of this type of car models, the expanding network of charging stations for electric cars, and the changing attitude towards transport sustainability.

Average 2023 The amount of Swedbank leasing financing for the purchase of a car was slightly more than 26.1 thousand. EUR, for an environmentally friendly car – 27 thousand. EUR, and for an electric car – 38.2 thousand. euros.

“An electric car is on average more expensive than a car of the same class with an internal combustion engine, but the applied incentives can reduce this difference by 2.5-5 thousand. euros. Residents are extremely active in using the benefits provided, businesses are additionally motivated by the possibility of VAT deduction and the desire to reduce emissions in their activities,” says the representative of Swedbank.

Both residents and businesses can apply for financial support provided by the state for the purchase of new and used electric cars and for the installation of their charging stations, take advantage of special leasing interest and Kasko insurance conditions for those buying environmentally friendly cars.

Special leasing conditions apply to those who choose cars with reduced CO2 emissions – hybrid, electric and low-power vehicles. The reduced interest rate depends on the amount of CO2 emissions, the latter being calculated based on the WLTP calculation methodology.