Car Rental – The Flexible “Ownership” Trend in the US and Europe

A New, Flexible Way to “Own” a Car

According to statistics, in recent years, leasing has accounted for about a third of new car sales in the US, even reaching 60-70% in the luxury segment. DreamLease reports that in the UK, this figure is around 20-30%, and in Europe, it’s over 25%, with Germany, France, and Spain leading the trend (according to McKinsey).

In the US and Europe, the main reasons people choose leasing are lower monthly costs, flexible lease terms, and attractive service packages. Notably, leasing also provides an opportunity to experience the latest car models and technologies at a reasonable cost.

This is especially true for young people who might not have the financial means to own a new car outright. Andrea Nguyen, a Vietnamese student studying in California, shared: “I decided to lease a car because it allows me to change cars after a few years without worrying about depreciation or maintenance costs. I can drive the newest models and stay up-to-date with the latest automotive technologies.”

Leasing is not just a popular choice for individuals but also for businesses in the US and Europe. In Germany, nearly 80% of company cars are leased vehicles.

Interestingly, there is a growing trend towards leasing electric vehicles. According to IEA statistics, the number of European customers leasing clean energy cars increased by 40% in 2023. The advantages of EV technology, enhanced driving experience, and environmental benefits are attracting more and more individual and business customers.

Significant Potential in Vietnam

The car leasing market in Vietnam is also showing great potential. A report by Report Ocean predicts that the car leasing market in Vietnam will reach a scale of USD 1 billion by 2032, with a compound annual growth rate (CAGR) of nearly 14% in the period of 2024-2032.

FGF is a pioneer in leasing VinFast electric cars in Vietnam, offering flexible leasing options.

Mr. Hoang Tung, a long-time car market observer in Hanoi, believes that Vietnam’s car leasing market will grow rapidly for three main reasons. First, the strong inflow of FDI has led to an increasing number of expatriates in Vietnam, who are used to the “car leasing culture” in their home countries and often opt for leasing services.

Second, the robust recovery of the tourism industry has brought a surge in international tourists, creating significant demand for car rental services. Finally, urbanization and the growth of the middle class, especially young customers who value flexibility and new experiences, will drive the trend towards car leasing.

“The trend of car leasing will quickly gain traction in Vietnam, especially with the entry of large-scale enterprises offering high-quality cars, comprehensive services, and simple procedures,” said Mr. Hoang Tung.

According to the expert, car leasing has been available in Vietnam for several years but mostly through small-scale and unstandardized models. However, with growing demand and the recent introduction of FGF’s electric car leasing model, founded by Mr. Pham Nhat Vuong, Chairman of Vingroup, the car leasing market is set to become much more vibrant.

In addition to competitive and flexible pricing, leasing experts believe that Vietnamese users will, for the first time, experience a “no-cost” service: no fuel costs, no road maintenance fees, no physical car insurance (already included in the lease cost), no smoke, and no gasoline odor.

“VinFast electric cars have already attracted a large number of domestic users. With this unique electric car leasing model, many people who do not have the means or prefer flexibility in ownership may opt for this new option. This will be a boost for the promising car leasing market in Vietnam,” Mr. Hoang Tung assessed.