Renting a car month by month instead of purchasing it upfront remains a topic of debate for many. Yet the trend is clear: leasing continues to attract followers and appeals to both businesses and individuals who prefer renewing their vehicles through this option. In the first four months of this year, leasing and rental firms began to dominate registrations, accounting for 23.9% of all new vehicles in Spain, nearly one in four. This momentum underscores a growing preference for flexible mobility solutions among a wide range of buyers.
The renewal cycle was highlighted during a recent gathering in Alicante, where the Spanish Leasing and Rental Association (AER) reported a positive trajectory for the sector and optimistic outlooks driven by increased investment via leasing and rental models. The meeting emphasized that the market is expanding, supported by sustained money flows into these financing methods as more companies and private buyers experiment with monthly payment plans.
For private leasing, the year showed a notable rise in investment, reaching 2.75 billion euros, up 22.2% across the country. Early-year data continued to point upward, with 412,952 vehicle records logged in Spain through April, and 98,583 of those tied to rental arrangements. This represents a 42.3% increase compared to prior figures reported by the association.
According to the association’s president, while corporate demand remains strong, the most dynamic segment is now individuals. The rise is accompanied by questions about the shift to electric vehicles and the impact of urban accessibility rules that limit traditional internal combustion engine use in major cities. Coronel de Palma notes that, amid technological uncertainty and municipal bans, many people prefer leasing because it offers flexibility if policies or technology evolve in the next few years—a practical alternative within the platform economy that provides more clarity about ongoing costs and maintenance.
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Coronel de Palma highlights a central challenge: while supply chains are orderly, the automotive sector still experiences delivery delays that slow growth. He also points to a practical growth path through financing of technology products, a model now familiar with high-end devices where monthly payments replace outright purchases. This approach could extend to vehicles, offering predictable costs and easier upgrades for customers.
Tourism-related investments also reflect this shift. Last year Spanish firms invested about 7.439 million euros to finance products under this formula, a 3.8% rise. Valencia Community led with 643.8 million euros, while Alicante Province accounted for 137.5 million euros. The financing volume contracted by 10.23% in that period, signaling regional contrasts in demand and capacity to adopt leasing for mobility and related equipment.
Yet the trend reversed in the opening months of the current year, with investment volumes recovering by as much as 29% in some provinces. Coronel de Palma attributes this rebound to a recovery in tourism, which spurred sector players to renew fleets or acquire new assets under leasing arrangements. This reflects a broader pattern of using long-term financing to manage capital expenditure more efficiently in a volatile market.
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Coronel de Palma also draws attention to rising leasing demand across Spain in the early months, as companies boost investments to weather ongoing tensions from the past year, including the war in Ukraine. He reiterates that leasing often serves as a reliable barometer of business efficiency and overall progress, especially when it comes to adopting new technologies and improving service delivery. The association notes a notably low default rate, closing last year at 3.6%, a touch below the prior period’s 3.7%.
What distinguishes renting from leasing? The primary difference lies in the structure of payments. Leasing acts as a financing method that enables the user to pay monthly installments and eventually acquire the asset at a residual value. By contrast, a straight rental arrangement does not grant ownership of the vehicle. Among individuals, the rental model tends to include most vehicle expenses such as insurance and maintenance, making it a convenient all-in-one option.