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JSC LC Europlan: Enhancing Growth of Car Leasing in Russian Markets

The evolution of automotive industry has witnessed surge of new trends, and leasing is one among those trends. Buying this big ticket possession accompanies with some additional expenses. Thus, leasing them becomes more convenient option, instead of owning them. A Russian company, JSC LC Europlan is enhancing this model with its endeavors to make cars easily available to Russian businesses and businessmen. JSC LC Europlan is a leading car leasing company in Russia. The company’s capital amounts to RUR 10 billion and it has BB rating according to Fitch Ratings. It has built 4,000+ partner suppliers, carried 300,000+ leasing transactions, and have 2 000+ employees and 80,000+ customers.
The company leases cars, commercial vehicles and smaller construction equipment to legal entities and private individuals. Europlan serves customers throughout the Russian Federation via its own distribution network of 74 offices.
In addition, according to survey by Leaseurope for 2017, JSC LC Europlan is among Top-15 car leasing companies in Europe by the volume of new business, and it remains the leader in car leasing segment among Russian companies.
Integrated Servings 
Europlan participates in the automotive industry-specific support programs provided by the Russian Government, while it launches its own subsidizing program from time to time. As JSC LC Europlan has a record of big shares of the market in truck and car leasing, it provides manufacturers’ discounts to its customers. It also tries to make the financial lease period comfortable to the maximum extent offering integrated support measures. It provides discounts for vehicle disposal and trade-in programs offered by dealerships to legal entities. This is how the company strives to satisfy the existing deferred demand for cars and trucks in Russia. Its integrated vehicle fleet services includes vehicle insurance, registration of vehicles with State Vehicle Inspectorate and at State Technical Authority, a fuel program, roadside assistance program, buy-out of vehicles, delivery of vehicles throughout Russia.
From a Credit Expert to the CEO 
An elite team of JSC LC Europlan is led by its CEO, Alexander Mikhaylov. Alexander joined Europlan team in 2001 as a credit expert. Since then, he developed and performed various functions within the company. Since 2011, Alexander was responsible for finance attraction, treasury and investor relations, and since 2013 he was in charge of finance and procurement. In February 2016, he was appointed as a President and Chairman of the Management Board of Europlan public company. Since November 18, 2016 he has been holding the position of the company’s Chief Executive Officer. On June 30, 2017 he also took the coveted position of CEO of JSC LC Europlan. Apart from CEO, Alexander also serves as a Vice President and a member of the Council of United Leasing Association, a major Russian professional union of leasing industry companies.
An Exceptional Approach 
Europlan primarily focuses on the quality of financial services and tries to make it exceptional. It also strives to simplify the business with its customers, both in terms of transactions’ documenting and communications within the period of leasing. The company offers an independent solution to each of its customer which is most suitable for their needs. For example, it selects car and trucks of any make and models, not only those, which are sold by a particular manufacturer.
As Europlan offers the widest range of car services at the Russian leasing market, its customers not only enjoy the most beneficial terms for a car lease, but also have access to convenient and beneficial maintenance services throughout the car life cycle. The company is very much flexible and swift, both when concluding a leasing contract with customers, making it done within 2 hours from the first contact, and when it brings new products and services to the market. Additionally, one of its exceptional features is its financing scheme. It never covers costs of servicing customers with smaller fleet with the income gained on major customers.
Increasing Awareness of Leasing Scheme 
Leasing industry is constantly changing and thus, facing challenges as well. According to JSC LC Europlan, running a leasing business in Russia is a challenge itself. The key challenge is that the use of leasing scheme to buy a car is poorly developed in Russia (less than 10% of total sales of cars and light commercial vehicle versus 30%-49% in Western countries). Europlan, being the leader of car leasing market, responds to that challenge by increasing customer awareness by promoting it through its content marketing products (for example, portal), Web, and mailing campaigns.
Another challenge has recently emerged, namely VAT increase in Russia. It has resulted in higher car and truck prices, due to which the number of transactions in the automotive market is reducing. But, Europlan take this new challenge as a need to work harder and to invest in business.
Moving Steadily towards Future 
According to Europlan, in the more distant future, the role of leasing companies would be to ensure higher mobility for their customers (using not only cars but also other transportation means). The company envisions leasing more and more often transforms for the customer from a way of buying car in a more financially beneficial manner to a service of car provision for possession and use with all life cycle-associated services, and customer only pays lease charge. The list of its strategic products includes leasing services for individuals, which is almost unknown in Russia for mass consumer, operational leasing and development of complementary services.
Testimonials from Europlans’ Clienteles 
“They offered terms for us, a startup company at the time, on which we were able to buy our first vehicle. The cooperation was interesting, productive and comfortable for both parties.”– Sibmontazhspetsstroy Group of Companies (GC SMSS), Construction Industry
“There is a game called Associations, which we manufacture. If we play the game, then Europlan is associated for us with civilized leasing.”- Desyatoye Korolevstvo LLC, Toys’ Manufacturer
“If your business stands still, you lose. That is why we draft now a new leasing contract. We are growing, together with Europlan.”- TSC LLC, Supplier of Construction Materials
Source: The 10 Most Active Vendor Leasing companies 2019