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Used car leasing grows 300% at LeasePlan

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Used car leasing demand has tripled at global vehicle leasing giant LeasePlan as part of the roll-out of its CarNext.com business.

CarNext.com is LeasePlan’s disruptive digital B2C and B2B used car marketplace through which customers can buy and lease used cars in Europe or also opt for subscription products.

Its pan-European B2C marketplace is now available in 15 countries and it is supported by a network of 24 delivery stores, with 11,600 vehicles sold in Q2 2018, a rise of 70% compared to the same period last year.

The strategy has seen 19% of total cars coming off lease sold directly to consumers by LeasePlan.

During Q2, the company secured 2,400 used car leasing contracts, compared to 600 for the same period last year.

In B2B, CarNext.com began the roll out of its new B2B marketplace trader app and also revealed that roughly 20% of total sales were cross border to capitalise on the arbitrage opportunity of matching demand with vehicle supply in different countries.

LeasePlan saw its serviced fleet reach 1.8 million vehicles during the second quarter, a year-on-year rise of 6.7%.

It achieved a net result for the quarter of €152 million, up 10.2% year-on-year, on revenues that were up 5.1% to €2.4 billion over the same period.

Tex Gunning, CEO of LeasePlan, said: “In the second quarter, our core Car-as-a-Service business continued to perform well, driven by growth in our corporate and SME segments. We have announced an operational lease partnership with Fiat Chrysler Automobiles (FCA) in several European markets to become the preferred partner to FCA’s European dealer network.

“In our disruptive CarNext.com platform, we generated €375 million in revenues in the last 12 months, and saw accelerated B2C sales growth of over 70% year-on-year.

“Looking ahead, our strategy to lead the megatrend from ownership to subscription – ultimately providing any car, anytime, anywhere – ensures we will continue to deliver significant value creation.”