MOUNTAIN VIEW, Calif. — The rising costs of new trucks will not affect the viability of the North American Class 8 truck leasing and financing market, according to new research from Frost & Sullivan.
Instead, researchers suggested, the market will see the rise of new solutions, business models and new revenue streams as OEM captives offer fleet management services and telematics-related value propositions to compete with non-captive firms. Revenue-generating services providing room for growth include service, parts sales and warranty contracts, Frost & Sullivan reports.
The findings come from its Strategic Analysis of the North American Class 8 Truck Leasing and Financing Market report. It finds financing will remain the top choice among customers, accounting for 64% of new Class 8 truck purchases. Leasing will be the preferred choice for 28% of customers and cash purchases for 8%.
“While non-captives have historically been leaders in the leasing and financing market, the line between the two parties will blur as captive business strategies begin to mirror those of non-captives,” saidFrost & Sullivan automotive and transportation senior industry analyst, Wallace Lau. “This has resulted in unique service solutions being offered to consumers by both parties such as contract maintenance, extended warranties and fleet management services.”
The report indicates captives and non-captives alike must deliver innovative packages to quell customer concerns over payment options, access to credit and service solutions.
“With fleets and owner-operators looking to streamline daily operations and improve overall efficiency and profitability, new opportunities have risen for OEM captives and non-captives to deliver customized, flexible services,” added Lau. “Captives and non-captives must position themselves as complete, one-stop service solutions to attract and retain consumers in the North American market.”
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