In a year marked by economic uncertainty, Germany’s leasing industry has continued to play a vital role in financing investments, with total leasing volumes reaching €80.4 billion in 2024. The Bundesverband Deutscher Leasing-Unternehmen (BDL) underscores leasing as a reliable engine of investment, supporting businesses across sectors, from vehicles and machinery to IT and renewable energy.
“Leasing remains a reliable investment engine for companies and supports the business environment. If companies are currently investing, they often resort to leasing,” explained Kai Ostermann, President of the BDL.
Leasing holds strong amid market shifts
According to research by the Cologne Institute for Economic Research (IW), new leasing and hire-purchase business declined by 4.4% compared to 2023. However, BDL President Kai Ostermann attributes this drop to temporary market factors, including post-pandemic supply chain catch-ups and a surge in large-scale transactions in 2023. Adjusted for these factors, the market remained relatively stable, maintaining a leasing share of 26.1% in total investment for machinery and equipment.
Leasing as a key driver for electromobility
Leasing continues to be a catalyst for electric vehicle (EV) adoption, particularly in corporate fleets. In 2024, 56% of all newly registered battery-electric vehicles (BEVs) were leased, despite a 27.4% decline in overall EV registrations. The number of leasing contracts for electric cars remained stable (+0.3%), indicating that businesses prefer leasing for its cost predictability, flexibility, and risk management benefits.
“Plannable costs, flexibility and risk minimisation make leasing the preferred form of financing for innovative technologies,” explained Ostermann.
BDL Managing Director Dr. Claudia Conen stresses the need for policy incentives to further drive EV leasing, particularly for corporate fleets, which account for two-thirds of new vehicle registrations.
“Private customers are paying more attention to the price, and a stable used car market and the level of leasing rates play a key role in the decision to buy an electric car,” reports Conen.
She advocates for tax benefits, such as allowing 1.5 times the leasing rate as a deductible business expense, and leasing incentives that apply at contract signing, ensuring leasing remains a viable financing tool for businesses.
Sector developments in 2024
Vehicle leasing: The industry’s largest segment, vehicle leasing, accounted for two-thirds of new business. While passenger car leasing volumes fell by 2.0%, the number of leasing contracts increased by 4.5%, with leasing penetration rising to 48.4% of new registrations (up from 46.7% in 2023).
Commercial vehicles & specialised equipment: Leasing for trucks, vans, and buses grew 1.2%, while agricultural machinery (+7.4%) and medical technology (+1.3%) also saw growth. Renewable energy leasing, particularly solar PV systems, surged by 23%, exceeding €1 billion in leasing volume for the first time.
Declining segments: IT, software, and cloud services (-7.7%) saw reduced leasing activity despite the growing need for digitisation, while construction machinery (-6.2%) struggled due to a three-year recession in the construction sector.
Manufacturing machinery (-7.1%) followed broader industry trends, with Germany’s mechanical and plant engineering sector seeing a 13% drop in orders.
E-bike and e-scooter leasing (-4.1%) declined for the first time post-pandemic, though company bike leasing remains a strong market force.
Future outlook: use instead of ownership
Looking ahead, the BDL calls for subsidy programmes that integrate leasing as a financing tool. Conen argues that policymakers should shift from ownership-based incentives to use-based financing models, ensuring that leasing remains central to driving corporate investment, digitalisation, and the green transition.
