Rental options push car ownership toward leasing
Many people still question paying monthly rent for a car instead of buying it. Yet leasing continues to grow, attracting more followers from both companies and individuals who see it as a way to renew their fleets and personal vehicles. In the first four months of the year, leasing firms began to dominate the market, with 23.9% of all new registrations in Spain coming through rental schemes—nearly one out of every four new vehicles. [AER briefing]
This trend was clearly highlighted during a recent Alicante gathering by the Spanish Leasing and Rental Association, known as AER. The meeting reflected a positive trajectory for the industry and underlined promising prospects driven by increased business investment channeled through leasing and rental formats. [AER briefing]
Private leasing also showed strong momentum. Last year, new investment reached 2.75 billion euros, a 22.2% rise across the country. The first quarter continued to show growth, with 412,952 vehicle records in Spain up to April, and 98,583 of those being rental transactions—representing a 42.3% increase according to AER data. [AER briefing]
While much of the demand remains corporate, the private segment is growing fastest. The president noted that some of the rise reflects doubts about transitioning to electric vehicles and the new restrictions on internal combustion engines in major cities. He explained that in times of technological uncertainty, many citizens prefer leasing because it offers flexibility when plans might change in two or three years. Leasing, he added, is a timeless tool in a platform economy that provides clarity and easier access to modern mobility.
Rental companies are pushing back against electric car quotas by highlighting the need for steady supply chains and streamlined vehicle deliveries. Another growth lever, according to the AER head, is financing technology devices through monthly plans, similar to how high-end phones are often financed, rather than bought outright. This approach makes large, evolving tech investments more manageable for both businesses and individuals. [AER briefing]
Leasing expands beyond traditional cars
In tourism, Spanish companies invested last year 7.439 million euros in financing products under monthly formulas, up 3.8% overall. Within this figure, the Community of Valencia accounted for 643.8 million euros and the Alicante province for 137.5 million, though financing volume contracted by 10.23% in the reported period. The later months of the year, however, saw a recovery as investment rose by as much as 29% in certain areas. The head of AER explained that the tourism sector’s recovery has driven businesses to renew or acquire new equipment under leasing terms. [AER briefing]
In Alicante itself, the focus is on how to balance the growing demand for electric and internal combustion vehicles. Coronel de Palma emphasized that leasing activity across Spain increased in the early part of the year, despite ongoing concerns about the war in Ukraine and its economic effects. He noted that leasing performance often serves as a barometer of business efficiency and progress. The association also highlighted a low default rate, finishing last year at 3.6%, slightly below the previous year’s 3.7%.
Understanding the difference between renting and leasing
People frequently ask what distinguishes leasing from renting. The core idea is that leasing is a financing arrangement that allows payment of rent for an asset with an option to acquire it later at a residual value. In contrast, traditional leasing means the owner retains no stake in the asset, and ownership is not transferred. The private audience tends to favor the leasing model because it often bundles most vehicle costs, including insurance and maintenance, into a single monthly fee. [AER briefing]