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Leasing is here to stay, with Generation Z as its biggest driving force

17 July 2023

Motivaction conducts periodic research on product leasing. While the 2021 measurement showed a rise in the popularity of private lease, the 2023 measurement revealed that this growth has plateaued. Nevertheless, the title of this piece asserts that leasing is not a declining trend. This is because the group with a negative attitude towards leasing has decreased in most categories over the past years. The new generation is now the primary driver of leasing.

 

An increasing focus on finances influences the leasing market

With higher prices and increasing frugality among the Dutch, money plays a larger role in the decision to lease. More consumers express interest in leasing more expensive products due to the option of spreading payments. Conversely, the perception of higher leasing costs increasingly factors into the decision to purchase products outright. Lease enthusiasts offset this higher cost against the financial risks of buying, with half of car leasers choosing leasing for the absence of unforeseen expenses. Costs, therefore, play a significant role in the decision to lease or not.

 

Leasing remains a growing market

Since 2018, the negative attitude towards leasing has diminished in many product categories, with the exception of solar panel leasing. The decrease in critics is partly attributed to a higher level of trust in the quality of lease products. But it doesn't end there. The decreasing desire to own products such as clothing, vehicles, and furniture also contributes to the popularity of leasing. This trend is already evident in the increasing presence of shared scooters, rental bikes, and car-sharing services on the streets.

Within the leasing market, cars remain the most popular product, with 13 percent of consumers actively leasing them. This category stands in stark contrast to clothing and shoes, with 93% of consumers not considering leasing them. However, leasing fashion is not entirely ruled out.

The group of critics is shrinking, and the enthusiasts are mainly among the newcomers in the consumer market: the younger generation. These developments go hand in hand with an increase in sustainability as a reason for leasing.

 

Young people are the major drivers of the leasing market

Just like in previous years, we see that young people are the most enthusiastic leasers. In contrast, consumers between 65 and 80 years old take a more critical stance. Half of this age group states that they never consider leasing, regardless of the product. This is in contrast to Generation Z, where only a quarter holds the same opinion.

In conclusion, buying new products is not yet a thing of the past, despite the increasing prevalence of leasing. Only a minority of respondents expect leasing to become very normal for many products in five years' time.

This minority also consists largely of young people. There is no doubt that this relatively young consumer group holds a different view on consumption than its predecessors. With the expected increase in spending power of these growing young consumers, the influence of Generation Z in the market will grow in the coming years. And with Generation Z as its main driver, we dare to say; leasing is here to stay.

 

About the research


The online research utilized Motivaction's StemPunt panel, which comprises more than 70,000 members. A total of 1,051 respondents between the ages of 18 and 80 completed the questionnaire. The research is representative, weighted for gender, age, education, region, and Mentality. The fieldwork was conducted in mid-April 2023.


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