The financial problems that Estonia is currently facing has led to a recent increase in down-payment and rejected applications.
The Estonian car leasing company Sampo Pank used to require a 10% down-payment but this has now increased to 20%. Indrek Julge, chairman of SEB Leasing, said that while a year ago the company approved about 80 percent of leasing applications, it has now come down to around 40 percent.
Julge added that lease terms have become less favourable for customers since the purchasing power of customers and solvency has been deteriorating. “Another reason is the increase in the number of cars returned to the leasing company after the lease period expires whose price has come down notably in recent times. However, the real wave of car return to lease is still ahead,” he said.
Source: balticbusinessnews.com
