# What is a good renewal rate for lease contracts — benchmark?

> A good renewal rate for lease contracts is 40-55% for private leasing and 55-70% for commercial leasing. The market average is 25-35%. The difference between 30% and 55% typically depends on whether a structured T-90 re-leasing flow is used or not. CARRUSLiNK customers report a 15-20 percentage point lift in renewal rates within 6-12 months.

**Source:** https://carruslink.com/en/answers/leasing-kontrakt-fornyelse-rate-benchmark
**Hub:** Leasing operations
**Last updated:** 2026-06-22

The renewal rate is the most important single metric in leasing because it drives both revenue and residual value risk. If the customer renews, the vehicle is returned in a controlled manner, prepared, and the next agreement is made without loss. If the customer does not renew, the portfolio must be replaced with cold acquisition (CAC: DKK 8,000-15,000 per contract).

Companies with the highest renewal rates share three common characteristics: (1) an automated re-leasing flow that starts at T-90, not T-30; (2) a single system that links the contract, customer, and next-vehicle offer — not a separate call centre; (3) clear margin and commission distribution between the leasing company and the dealer, so no one loses money by selling renewals.

- Market average private leasing: 25-35%
- Market average commercial leasing: 35-50%
- Top-tier private: 40-55%
- Top-tier commercial: 55-70%
- Biggest leverage points: T-90 flow + one system + clear margin
- CARRUSLiNK customers: typically +15-20 percentage points in 6-12 months

— CARRUSLiNK · https://carruslink.com/en/answers/leasing-kontrakt-fornyelse-rate-benchmark
