Research About Car Leasing

7/26/2019 Research About Car Leasing

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Trend Analysis of People opting for Bank Car Lease Schemes

Nadia Zehra

Department of Computer Sciences,

Allama !"al #pen $ni%ersity, slama"ad

A"stract:

Banks provide car leasing schemes to

customers who can pay in installments. In

order to meet the expectations: customer

inclination is to be researched. So that banks

can endow more profitable design and focus

on the automobiles that can provide more

benefits in the future. Customer data can be a

useful contribution to estimate the economictrends. Nowadays banks give a lot of facilities

to customers from credit cards different kinds

of loans insurance and auto lease schemes.

!ur focus in this research is on information

drawing out of car leasing scenarios. Now

owning a car is not a huge burden as it used to

be few years back. "eople can get brand new

luxurious or second hand cars of their choice

at affordable prices on regular installments in

lieu of various car leasing schemes. Such an

ease has increased a lot of traffic as

individuals with average income keep a #uota

of their money for loans to be on roads. In this

study our focus is to find trends in car leasing

among common people their perceptions and

how to improve the road behavior.

ntroduction&

$he car lease cases have interest rates or aremortgage free depending on the type of

banking. $he repayments have to be made for

a range of %&' years in many cases. $his data

can very helpful if we want to make educated

guesses about customer preferences of buying

the type of cars. Similarly keeping in view the

background of customers it can be somehow

ruled out that how customers manage the

paybacks. $ransport situation in "akistan is

not better than worse. (ccording to )orld

Bank *eport there are approx %+ passenger

transports for %+++ people in "akistan in

,++-. $his is dis#uieting situation on roads.

(n alarming situation for a population of %+

million. !ut of which working class make %%+

million which is /+0 of the population 1%2.

(ccording to Neilson Study in ,+%3 about

40 of people want to buy new cars in next

two years and -0 are willing to get them

when they become financially strong. $o meet

the demands of working people on roads Car

5inancing has played a vital role in providing

auto lease opportunities. $he banks that

provide car financing in "akistan are: 6B7

(skari Bank 8ee9an NIB ubai IslamicBank to name the top most ones.

Customers play a key role in financial sectors

specially banks. $he needs and behavior of

the customers can be analy9ed using C*8

techni#ues 1,2. !ne aspect of C*8 is to

highlight the customers that can be termed as

cash effective and on the reverse all those as

well who are risk to banks. $herefore

Customer analysis done by banks can not onlyincrease performance but also strengthen the

customer ties with it. ;Banks that apply

analytics to customer data have a four

percentage point lead in market share over

banks that do not.


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important substantial body to know their

status to draw to a close look at their payback

trends. ;"rudent borrowers restrict their loan

demands to a reasonable percentage of their

annual income and many banks as a matter of

practice enforce an arbitrary maximum

percentage.< 132.

Pro"lem Statement&

$he research focuses on trends analysis of

customers availing car lease schemes. $he

evaluation is to support the banks analy9e

how to categori9e the loans. ( particular

brand of car could be a hot favorite. )hich

banks policies are mostly favored by people>(re the policies by banks beneficial and

analy9e the improvement suggestions given

by the people.

'esearch (ethodology&

;(nalysts say that as technology becomes

increasingly important some buyers have

started to assess their cars and trucks as they

would the latest computer or cell phone as agadget. $he lease has offered a solution for

many shoppers: a chance to drive home in a

vehicle that has the latest technology while

still keeping that monthly payment within

reach< 1'2. $he methodology that is used to

analy9e customer trends is through surveying.

( general #uantitative analysis is done taking

in account ordinary people. ( sample si9e of

,' is used with people of no prior knowledge

of car leasing methodology.

Data Analysis&

In this research we seek different views of

general public for e.g. (re the installment

limits harsh or not> $he following results

show that more than half of the people didn?t

reply in favor of Installment limits. If you do

an Industry analysis the Installment rates of

various banks vary from %&,%0 of overall

payment which amounts a lot for an average

income customer.

010203040

Opinion about Installment Rates of Car Leasing Schemes

In another #uestion of preference of Banks

most of the customers voted for two Banks

namely Bank (lfalah and (skari bank 7td.

ue to @ood Customer Satisfaction repute

they are termed as the most favorite banks.

Banks offer different cars of customer choice

to be leases. ue to different markup rates

and installment types people preferences

change. 8ost of the people tend to buy small

cars which are more affordable. $he analysis

has shown that most of the customers tend to

prefer Su9uki and 6onda Brand. $he cars

which bought at once with full payment are

now possible to be drawn with some down

payments. !ne becomes owner without

paying the actual amount. $his ownership

gives customer the freedom to choose their

dream car. 7ocal car sales Aincluding lightcommercial vehicles eeps and vans umped

to )*,+- unitsin the first three months ADul&

Sep of fiscal year -./ up 4,0 compared to

0,+11units in the same period of last year

according to data released by the "akistan


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(utomotive 8anufacturers (ssociation

2PA(A34 5/2

(nother feature of our survey has been the

market segmentation. $here are many broad

aspects of 8arket Segmentation in(utomobile Industry that range from

@eographical emographical "sychological

and Behavioral Segmentation 142. "eople

preferred that young employees and people

who are financially robust must opt for these

schemes. $his gives the idea that as "akistan

is a young country with /=0 population under

the age of ,'. So it?s very feasible to target

the consumer group of young enthusiast

employees to employ in these schemes.

Esually low cadre employees with new obs

tend to have cars for their status

improvement.

$ransport Issues as mentioned earlier is a

grave concern. $here is already much traffic

on roads. (nd Car 5inancing has added more

burdens on roads as in "akistan public

transport has not provided the ade#uate means

to travel within city. $he recent incorporation

of 8etro Services in big cities like

*awalpindiFIslamabad and 7ahore has

provided a positive impact on ordinary people

commuting within cities. It is estimated that

public transport demand of around %'=+++

passengers is available on daily basis between

the two cities AIslamabad&*awalpindi 12.

6owever within the city there is still not a

passable infrastructure to maintain peoplecommutation. $hough Car financing has

provided relief to individuals it has

supplemented traffic problem to a huge

extent. Such issues can be addressed if the

7easing Companies focus on @reen

Gnvironment. $hey should do measures to

provide vehicles that are less polluting and

limit the families with already possessing

vehicles to exclude from such schemes. 8ost

of the customers have given positive reply for

@reen 7easing in the survey. (nd much do

not know the terminology. )ith propagation

towards such important factor things can go

in favor of clean environment businesses.

Conclusion&

In Banks there is a much greater scope to do

market segmentation for auto leasing. $here

are many areas that need to address like Safe

(uto Banking @reen (uto 7easing and Soft

Installment rates to make cars affordable forordinary users. Customer analysis and trends

study give a proection towards future policy

making and course of actions. Car financing

is a success tree if it is grown with proper

research methodologies incorporating future

trends as well.

'eferences&

%. 8a9har N. A,+%=. "akistan GconomicSurvey ,+%,&%=: "opulation 7abour

5orce and Gmployment 8inistry of

5inance @overnment of "akistan.

,. Suresh B. C. A,+%,. CRM is all

about bringing people, processes &

technology together a case study of

banking sector in India, *omanian

Dournal of 8arketing % '+&'/.

=. Consulting C. A,+%=. Big ata

(lchemy: 6ow can Banks maximi9ethe value of their customer data *etail

Banking Hoice of the Customer

Survey Capgemini G58(.

3. Chapman D. 8. A%-3+. $he

Customers of "ersonal 7oan


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epartments Commercial Banks and

Consumer Installment Credit NBG*.

'. Jessler (. D. A,+%'. (uto 7easing

@ains "opularity (mong (merican

Consumers $he New Kork $imes

ADan .

/. Ibex A,+%'. Car Sales Dumped to '3

%, units in the first three months 5K

,+%/ (ccessed from:

http:FFwww.ibexmag.comFpakistanFne

wsFcar&sales&umped&to&'3%,&units&

in&the&first&three&months&fy&,+%/F

4. 8antra @. A,+%%. 8arket

segmentation for automobiles

(ccessed from: http:FFgaurav&

mantra.blogspot.comF,+%%F+=Fmarket&

segmentation&for&automobiles.html

. 8etro *awalpindi A,+%/. (ccessed

from: http:FFwww.metrori.pkFabout&

proectF
http://www.ibexmag.com/pakistan/news/car-sales-jumped-to-54812-units-in-the-first-three-months-fy-2016/http://www.ibexmag.com/pakistan/news/car-sales-jumped-to-54812-units-in-the-first-three-months-fy-2016/http://www.ibexmag.com/pakistan/news/car-sales-jumped-to-54812-units-in-the-first-three-months-fy-2016/http://gaurav-mantra.blogspot.com/2011/03/market-segmentation-for-automobiles.htmlhttp://gaurav-mantra.blogspot.com/2011/03/market-segmentation-for-automobiles.htmlhttp://gaurav-mantra.blogspot.com/2011/03/market-segmentation-for-automobiles.htmlhttp://gaurav-mantra.blogspot.com/2011/03/market-segmentation-for-automobiles.htmlhttp://gaurav-mantra.blogspot.com/2011/03/market-segmentation-for-automobiles.htmlhttp://gaurav-mantra.blogspot.com/2011/03/market-segmentation-for-automobiles.htmlhttp://www.ibexmag.com/pakistan/news/car-sales-jumped-to-54812-units-in-the-first-three-months-fy-2016/http://www.ibexmag.com/pakistan/news/car-sales-jumped-to-54812-units-in-the-first-three-months-fy-2016/http://www.ibexmag.com/pakistan/news/car-sales-jumped-to-54812-units-in-the-first-three-months-fy-2016/

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Research About Car Leasing