The experteye European Leasing Index tracks forecasted residual values, maintenance costs and rental rates in six European countries using data supplied by major leasing companies in each market.

Of the six countries surveyed, France was just behind Spain with an +8% rise in forecasted RVs for the year, Germany +7%, UK +3.4%, Portugal +2% and Italy +1.5%.

Yet for the last quarter it is the UK that has seen confidence in the future used vehicle market soar with a +11.1% increase in forecasted residual values between February and April 2011.

Over the 12 months, budgeted servicing, maintenance and repair (SMR) costs have remained relatively stable across Europe with only Spain reporting a notable increase of +6.4% in prices. Variations across the other five nations sat between a +1.5% increase and a -0.6% decrease during the year.

However, it is UK leasing customers who have suffered the most since May last year with rental rates rising by +7.5%, the highest reported in the experteye survey.

France: With a +8% rise in forecasted RVs in the last 12 months, France is second only to Spain in its confidence in the future used vehicle market, although this has settled in the last quarter with a small +0.8% rise. Of the 6 nations surveyed, French SMR rates have seen the greatest reduction with a -2% drop in costs during the last quarter and a -0.5% reduction over the year. Leasing customers in France have experienced very little variation in their rental rates with a +0.1% increase in the last 12 months, but a -1.2% decrease between February and April 2011.

Germany: In the last quarter Germany has reported a -1.3% reduction in rental rates, and whilst only marginal this is the largest decrease of all nations surveyed. This reflects a steady downward trend in rental prices with a -4% reduction over the last year. Forecasted residual values have continued to climb with a +1.6% increase in the last quarter and a +7% rise since May 2010. SMR costs have remained reasonably stable with a +1% rise reported during the quarter and a -0.5% reduction across the year.

Italy: Italy has shown the least optimism in the future used vehicle market since February 2011. With a +1.5% rise in forecasted RVs over the last 12 months but a -3.2% decrease in the last quarter, there appears to be a degree of uncertainty regarding the strength of the market. Budgeted SMR costs have come down slightly with a -0.6% decrease over the last year, but this has been counterbalanced with a small +0.3% rise between February and April 2011. During the last quarter, Italian customers have seen a small -0.5% reduction in lease prices however there has been a +1.6% rise since May 2010.

Portugal: Portuguese leasing customers have seen a +3.5% rise in rental rates in the last quarter, the biggest 3-month price increase of all nations surveyed. This is consistent with an upward trend which has seen a +5% rise over the last 12 months. SMR budgets have seen the highest rise in the last quarter with a +2% increase, and +1.1% since May 2010. RV confidence in Portugal has dropped between February and April 2011 with a -0.9% reduction, however overall confidence in future re-sale values has improved by +2% during the year.

Spain: Spain tops the league table for confidence in the future used vehicle market over the last 12 months with a +9.7% increase in forecasted RVs. However, this has stabilised in the last quarter with a -0.8% decrease. Since May 2010, Spain has also reported the biggest hike in budgeted SMR rates with a +6.4% increase, which has calmed to +0.4% in the last quarter. Over the year, however, Spanish leasing customers have benefited from the biggest reduction in lease costs, with a -3.5% drop. In the last quarter there has been a -0.8% reduction.

The UK: The UK reported a massive +11.1% rise in forecasted RVs in the last quarter; by the far the biggest increase of all nations surveyed. In the previous European Leasing Index survey (March 2011) the UK had shown a drop in RV confidence by -2% over the year, which means this increase shows a significant shift in confidence and delivers a +3.4% RV rise since May 2010. However, UK leasing customers have also seen lease costs rise the most over the last 12 months with a +7.5% rise in rentals and a +2.3% increase in the last quarter. SMR budgets have been relatively stable with a +1% increase in the last quarter and a +1.5% rise over the year.