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In the case of the financing of new cars, no real change occurred compared to 2010. Fleet financing was characterised by growth, while placements increased by 27%, setting the weight of the segment to 34% within vehicle financing. While the potential of growth regarding fleet financing will probably push the market, the prospects of public vehicle financing stand unchanged.

In 2011, the recession in vehicle financing further deepened, while the customers’ borrowing mood didn’t move from the low point, in fact, it further decreased compared to previous years. The value of all placements within the sector went under 100 billion HUF for the first time in ten years (96.72 billion HUF). This is 10% decrease compared to 2010, and almost 85% decrease compared to 2008, the last “peaceful” year before the crisis.

The fewer number in placements is a result of the 21% decrease in the used car segment, while the financing of new cars stayed on the level of the previous year. Volumes mildly decreased regarding the number of financed vehicles, while in the case of placements, a slight 4% growth was registered.

“If we consider the previous two years from the aspect of quarterly results, it clearly shows that used-car financing has been decreasing since early 2010 as a trend, though the negative change can in fact only be noticed in Q3 and Q4 of 2011,” points out Ádám Anderle, Board of Management member at Lombard Lízing Group. “The tendency is well represented by volumes, which practically halved by the fourth quarter of 2011 compared to the first quarter of 2010.”

Fleet financers ended up with positive results in the sector. While public vehicle financing is still in a deep recession, placements within fleet financing increased by 27% in 2011. The significant growth in the weight of fleet financing is shown by the fact that while in 2008, the proportion of this area was only 10%, this rose to 34% by 2011.

According to the regulations introduced in early 2012, the “great hit” of the year could be the open-ended financial lease construction. Starting from 1 January 2012, the changes in the regulations regarding VAT allow the deduction of VAT from the monthly payments of open-ended leases.

According to Mr Anderle, this change, especially when paired with the positive changes of the macroenvironment, can pull both sales and financing. It helps the latter because this VAT-advantage can only be utilised in the case of financing, not when paying with cash.

According to the expert of Lombard, thanks to the regulations introduced in 2010 regarding vehicle financing, in connection with own resources, term and financing in a foreign currency, vehicle financing in 2011 could operate within a well-moderated framework, in the midst of strong competition and moderate risk-taking. This is represented by the fact that 2011 was the year of HUF-based loans, CHF-based loans practically disappeared, and the proportion of EU-based loans decreased below 20%.