AUTO LEASING

Auto Leasing Broker Business

Abstract

The industry of car leasing is an integral part of the entire sector of transport. This industry provides an individual to afford a vehicle economically. In this paper, the Auto Leasing industry has been analyzed. The potential competitors of the new ABC Leasing Company have also been discussed. The paper also highlights the SWOT analysis of the new company.

Table of Contents

Abstractii

Introduction1

Economic, Political and Societal Trends' Impact on Venture1

Key Industry Statistics2

Target Market3

Auto Leasing Industry3

Competitive Environment4

Competitors4

SWOT Analysis4

SWOT Analysis of ABC Leasing Company5

SWOT Analysis Details6

Strengths6

Weaknesses6

Opportunities7

Threats8

Conclusion8

References10

Auto Leasing Broker Business

Introduction

The industry of car leasing is an integral part of the entire sector of transport. This industry provides an individual to afford a vehicle economically. I want to venture on the Auto Leasing Broker Business. The name of my company will be ABC Leasing Company. The company will provide affordable auto leasing facilities to numerous individuals so that they can easily afford a vehicle. The company will be located in Missouri and will eventually open branches in Kansas, Illinois, Oklahoma and Colorado. Following is a detailed analysis of the auto leasing industry and the competitors.

Economic, Political and Societal Trends' Impact on Venture

After being hard-hit by a tough credit market, high unemployment rates and dwindling consumer spending, the industry is entering a recovery period. The general economy and the credit market has started to make improvement and the pent-up release demands in the period of recession has been set to drive demands (Porteous & Tapadar, 2005).

Products & Services

The product and service in the leasing industry includes:

Industrial and commercial loans

Loans of used and new vehicles

Other sales financing

Industrial and commercial leasing

Leasing of used and new vehicles

 

Product/Services

Share

New and used vehicle loans

44%

Other sales financing

20%

Commercial and industrial leasing

11%

New and used vehicle leasing

15%

Commercial and industrial loans

10%

 

Key Industry Statistics

Key Industry Figures

2010

2011

 

Industry Revenue

95,406.6

98,003.8

$ million

Revenue Growth

9.5

10.6 

%

Industry Gross Product

14,935.5

16,895

$ million

Number of Establishments

5,508

5.526 

Units

Number of Enterprises

2,634

2,646 

Units

Employment

121,179

151,895 

People

Total Wages

10,642.2

13,645 

$ million

Target Market

The target market of the ABC Leasing for the next five years will be both males and females aged between 18 years onwards. The income of the target market will be 8,000$ onwards. The increase in the income of the target market will make a positive impact on the revenues of the company.

Auto Leasing Industry

The auto leasing is an effective alternative to the ownership of the automobiles which began in 1970s and became popular in 1990s after a dramatic increase in the prices of the cars. Since then, the industry of auto leasing is growing and is the most cost effective alternate to buying cars. The total number of leased cares this year has doubled as compared to those leased in the past five years (Kamath & Kerkar, 1990). Furthermore, leases on new cars make up about a third of the total car lease deals, and the number is projected to rise as car prices keep raising. This predicts that the car leasing industry will continue to grow.

The services that the industry provides have diversified over the years. Many car leasing companies these days do not only cater to private vehicle lessees, but ...