Hungary's leasing market is expected to rebound in the coming months after it bottomed out in Q2 2009, the latest report of the Hungarian Leasing Association reveals.
The value of leases fell 70% yr/yr to HUF 226 billion in the second quarter, the number of contracts dropped 74% in Q2.
The members of the Association expect pessimism to decrease in H2 2009, though figures are still worse than expected.
Hungarian Leasing Association General Secretary Gábor Lévai said that the market has continually underestimated the degree of recession because economic processes were unpredictable. However, the strengthening of the forint and the probable stabilization of the government budget are positive signs for the market and the clients.
The duration of car leasing contracts declined, but in instance of other segments, the number of contracts with longer duration increased because clients can pay only smaller installments.
The value of car leases dropped 65% yr/yr in Q2 2009, while the number of contracts fell 66%. The value of leases for corporate fleets decreased 46%, while the number of contract dropped 39.5%. The proportion of used cars rose.
The value of commercial vehicle sales and the number of contracts both fell 66%. The proportion of new commercial vehicles has fallen 26% since the beginning of 2009.
The value of machinery and equipment leases declined 46% yr/yr in H1, while the number of contracts fell 66%.
The property leasing market contracted 57% yr/yr in Q1 2009 and 75% in Q2, while the number of contracts dropped 89% in Q2. Less expensive properties are becoming more popular. (MTI-ECONEWS)