Demand-side Factors of the Georgian Cars’ Leasing Market Avtandil Gagnidze, East European University

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Demand-side Factors of the Georgian Cars’ Leasing Market Avtandil Gagnidze, East European University

Abstract: The purpose of this article is to continue our papers and investigate the possibilities of leasingdevelopment in Georgia and to develop measures to increase its effectiveness. Because of the decision “lease orbuy?” always is based on Financial and Behavioral aspects, we‟ll investigate both, but particularly focus on aspectsthat determine the Decision Making. In order to achieve the goal set in the article the following main task is stated:What are the most important factors for Georgian consumers and that influence their decision on leasing? Main findings: Survey results show that Awareness is really the problem. Only 139 out of 318 (about 44%)participants responded that they are well aware on Leasing and the difference between leasing and loan. The surveyshows that most of potential consumers prefer their own funds: 150 out of 318 (about 47%) and only 56 (less than18%) consider leasing as source of financing. Most of potential consumers 245 out of 318 (about 77%) prefer tohave Hybrid or Electric cars. With respect to New Average Brand or Secondary Luxury Brand consumerspreferences are almost the same: 141 and 147 out of 318 for New and Secondary consequently. Ownership is likelybe very important, because of with Leasing, person is not real “owner”: 72% of respondents indicated thatownership is important or very important.

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