In a survey of millennials (those aged 18 to 37) about financial milestones, Moneyish found that millennials on average thought that the ideal age to lease or buy a first car is 21. 14% of millennials believed that people should buy or lease their first car before their 18th birthday.
When it comes to car leases, monthly payments are decreasing right now. Kelly Blue Book (KBB) estimates that the average transaction price for a smaller vehicle was $35,511, an increase of $736 over the last year and $118 higher than at the end of May. For car leasing programs, however, that story is different.
“We’re seeing an increase in discounts and aggressive summer pricing beginning to permeate across trucks and SUV’s for lease deals,” said Wantalease.com Executive Vice President Scot Hall. “Consumers are increasingly searching for aggressive deals on everything from small trucks to large, as well as mid-size and luxury SUVs.”
In July, the Nissan Sentra had the lowest monthly payment of all cars, even lower than the Ford Focus, which used to hold the lowest monthly payment spot.
With car sales dropping 2% this year and fewer millennials getting into new vehicles, “car subscriptions” are starting to gain popularity. This service allows drivers to swap cars in and out of their local dealership however often they want. Ford, Cadillac, and Volvo are three of the biggest car brands that are using this new type of service for a $950 monthly fee. This covers costs for delivering the car, maintenance of any kind, and insurance.
“Auto makers are charging a premium for subscription services because you do get the convenience, you do get the flexibility,” Cadie Thompson, a Business Insider transportation editor, said. “That’s priced in.”
Turo, also known as the ‘Airbnb for cars’, is offering a service that allows people to lease their Tesla cars to strangers in order to better afford them. Car owners can list their vehicles on Turo and lease them daily. According to Turo, the average host in San Francisco makes $672 a month through Turo, which is more than enough to cover the average monthly car payment in the United States for a new vehicle. Users of Turo can charge anywhere from $29 to $200 a day, depending on the vehicle.
When Turo users were asked what they do with the money from renting their vehicles on Turo, over half of respondents said that they use the money to pay down their car loan or lease, while a third said they put the money into savings.
Turo currently leases vehicles in over 56 countries and 5,500 cities around the world.
Rolls-Royce is stepping up the car industry game by prototyping a flying car. This is not long after Uber announced plans to introduce flying taxis in Dubai, Dallas and Los Angeles by 2020, raising the possibility of flying vehicles being offered by fleet management companies in the distant future.
The British company unveiled an electrical vertical takeoff and landing (EVTOL) vehicle in the UK at the Farnborough International Airshow, creating new competition in the vehicle marketplace.
The EVTOL is said to carry up to five passengers while traveling at speeds of 250 MPH for around 500 miles. They anticipate the vehicle being available for use by the early 2020s, but plan to create the prototype within the next year and a half.
“Building on our existing expertise in electric technologies and aviation, Rolls-Royce is actively exploring a range of possible markets and applications for electric and hybrid electric flight,” said the head of Rolls-Royce’s Electrical team, Rob Watson. “We are well placed to play a leading role in the emerging world of personal air mobility and will also look to work in collaboration with a range of partners.”
The vehicle would be powered by six electric propulsors, which are “specifically designed to have a low noise profile”. To take off or land, the vehicle’s wings would rotate 90 degrees, and then would fold away once the vehicle reaches cruising height, relying on rear propellers for momentum.
“Electrification is an exciting and inescapable trend across industrial technology markets and while the move to more electric propulsion will be gradual for us, it will ultimately be a revolution,” Watson said.
The company, based in the UK, makes commercial jet engines, but is not associated with Rolls-Royce Motor Cars, which is owned by German car manufacturer BMW.