Car Leasing Dominates New Vehicle Market in Austria

Car leasing has transitioned from a corporate perk to a mainstream lifestyle choice, with over half of new cars in Austria being leased. The leasing rate hit a record 59.4% in 2025, a significant increase from the previous year, according to the Association of Austrian Leasing Companies (VÖL). This trend applies to passenger cars (56.9%) as well as commercial vehicles like trucks and buses (78.4%).

Several factors fuel this surge in leasing. Primarily, the substantial rise in car ownership costs since 2020, with the consumer price index for passenger cars increasing by 29.3%, has pushed consumers towards leasing. It offers a way to manage monthly expenses and gain flexibility. Additionally, financing costs have climbed, with market interest rates for leasing rising from around 2-3% to up to 7% in 2024, though they have slightly decreased to 4-6% more recently. However, these higher rates also affect traditional financing.

The growing market share of electric vehicles (EVs) is another key driver. EVs now constitute a quarter of all new registrations. Leasing can incorporate government subsidies, lowering monthly payments. Crucially, it helps mitigate the significant residual value risk associated with EVs, especially given rapid technological advancements and aggressive pricing from Chinese manufacturers like BYD, Omoda, Jaecoo, and Xpeng. These new players are not only offering competitive prices but also advanced technology and design, supported by extensive dealer and service networks.

Alexander Schmidecker, CEO of Raiffeisen Leasing GmbH, notes the rapid establishment of these new Chinese brands. Tesla also sees strong demand. Furthermore, rising fuel prices, partly due to geopolitical tensions like the Iran war, are prompting more consumers to consider electric mobility, making leasing an attractive option to manage the transition and associated costs.