The car rental company ALD sold its vehicles in the first quarter with a record profit of more than 3,000 euros per vehicle on a very tight second-hand market, according to figures published Thursday.
The Société Générale subsidiary sold its vehicles with a profit of 3,101 euros per unit on average, compared to 439 euros in the first quarter of 2021, for a total result of 215.2 million euros. The lessor, however, sold fewer vehicles, multiplying contract extensions and used car rentals.
In a context of pandemic, shortage of semiconductors and with the war in Ukraine, the shortage of new cars has intensified in Europe, raising the price of used cars to historically high levels, explains ALD in a press release.
In this context, ALD recorded strong sales momentum in the first quarter and an exceptionally favorable second-hand vehicle market which should continue in the short term.
The lessor’s net income jumped to 255.3 million euros in the first quarter (+64.2% over one year). The group had 1.737 million contracts at the end of March 2022, for a fleet of 1.436 million vehicles (+4.8% over one year). Rental contracts brought in 329 million euros, a stable figure which includes a provision of 27 million linked to Ukraine, where ALD leases 5,000 cars.
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ALD had an excellent start to the year, with strong commercial momentum, despite supply constraints, said Tim Albertsen, the lessor’s general manager, in a press release.
ALD has revised its forecasts upwards for its car sales, counting on an average profit of more than 2,000 euros per unit for the year 2022. It also continues to prepare the acquisition of its Dutch competitor LeasePlan, whose closing is scheduled for the end 2022, after approval by the competition authorities.