In Q1 2014 the share of financed vehicles in the Ukrainian car market grew as compared to the same period of last year. Thus, the crediting segment increased by 0.9 %, leasing segment – by 1.1%. On the whole the market of new vehicles showed a significant decline in the volume of sales.
According to the results of work in Q1 2014 Porsche Finance Group (PFG) ranks ninth among the major players in the credit market in Ukraine with a share of 4.15% (according to the research of “IC “VUSO”). Last year this figure was higher: according to the data of analytical department of “Alfa-Bank”, the company ended 2013 with a market share of 7.9%. PFG’s explanation of such a decline is simple: despite the fact they have the lowest crediting rates in the market (10.5%), financing is provided in hryvnya at the exchange rate to the foreign currency, and it serves as a major deterrent from buying.
“Due to the unstable situation in the country customers are buying cars with due diligence. Moreover, after a sharp devaluation of the national currency such brands as Volkswagen, Audi and SEAT, with the prices referring to the exchange level, greatly grew in price. Under current conditions, clients are afraid to make purchases related to financing, especially those that are not in the national currency. Therefore, one of the priorities we have identified for ourselves is offering financing in hryvnya,” Josef Graf, CEO of Porsche Finance Group, says.
According to him, one of the most important directions of the company development is a Fleet Service and special deals on cars of fleet models. “The mentioned concept provides a number of benefits for the organizations purchasing vehicles of fleet models. They are privileges of service at dealer centers, individual payments system, and a number of other bonuses. For big business, which realized the benefits of operative lease long time ago, it is very convenient,” Josef Graf explains.
Moreover, to strengthen its positions in the market and provide customers with additional benefits when financing a vehicle, PFG plans to pay special attention to further development of insurance services. Thus, implementation of a model of direct settlement of insurance claims for all customers of Volkswagen, Audi and SEAT authorized dealers in Ukraine is planned, as well as increasing the share of sales of additional insurance product GAP. This product provides full or partial compensation of the difference between the cost of the vehicle acquired and the residual value of a new vehicle at the moment of its destruction or theft.
“Now, in the market one can observe not only general decline in funding levels, but in sales in general. This is normal in conditions of instability, and we are ready for this. I think we can predict the number of sales in the market in the amount of 110-130 thousand vehicles. Moreover, the segments of leasing and crediting are most likely to retain their positions amid general decline”, Josef Graf emphasized.
Information about the Company:
Porsche Finance Group is represented in Ukraine by the companies of Porsche Leasing Ukraine, Porsche Mobility and Porsche Insurance Agency. They are the property of Austrian Porsche Bank, which in its turn belongs to “Porsche Holding” (Volkswagen AG). In Ukraine Porsche Finance Group provides the following services to the clients of official dealers of Volkswagen, Audi, Seat and Porsche – financial operating leasing, crediting, fleet management services and acts as an intermediary in insuring vehicles purchased with financing or cash.