The Equipment Leasing Association (ELA) has released its Status & Outlook of the US Truck and Trailer Leasing Marketplace. This study measures the size and scope of the finance and lease markets for Class 1 — 8 commercial trucks and trailers, while detailing current and future trends in the marketplace. ELA chose MacKay & Co to complete the study.
A key finding of the study is that companies have an opportunity for market entry. Industry consolidations have led to a need for firms with adequate financial resources. Qualities making the market desirable include a large customer base in need of financing, a large population of trucks and off-highway equipment both used and new, and a captive audience among dealers and end-users. Other study highlights include:
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The Class 8 market is expected to return to levels of 200,000 through 2005.
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The truck finance/lease market accounts for 9% of Class 2 — 8 registrations. Almost 9% of the Class 8 market is leased.
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The top 10 lenders hold 69% of all Class 6 — 8 registrations.
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A shift has occurred in finance/lease from new equipment to used equipment. This has occurred in the past two years, with used equipment comprising most finance/lease packages.
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The number of finance/lease lenders has decreased due to company closings and consolidations.
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Aggressive growth strategies are resulting in additional sales force hirings. These additions are helping financial institutions improve customer relationships.