Vehicle finance was responsible for 75% of the record €64.2bn (£54.9bn) of new leasing business in Germany in 2016, according to the Federal Association of German Leasing (BDL).

Passenger cars and commercial vehicles were the largest asset type of new leasing business, increasing by 8.6% to three-quarters of German leases in 2016.

The BDL stated that 40% of all newly-registered road vehicles in Germany were leased, as vehicle finance continued to expand its market share.

However, despite record results, Martin Mudersbach, president of the BDL, delivered a gloomy outlook for the German leasing market in 2017, citing the outcome of the US presidential election and low interest rates as contributing factors.

Mudersbach said: “The outlook for economic growth and the safeguarding of business location is not good.

“Persistently low interest rates have imposed considerable burdens on leasing companies as regards to their income and cost situations.”