Car leasing programs gain traction

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The automotive industry has gone through a somewhat recent, but ever-evolving transformative stage of shifting focus from primarily-bought vehicles to primarily-leased vehicles. This movement is still in motion, with the balance between owned and leased vehicles being consistently shifted in favour of cars obtained by novated leasing or general leasing methods. The simple reality is that Making the choice between buying and leasing your next vehicle is an interesting one. While there are obvious pros to buying a car – customisation at your will and complete ownership, being two of the most prominent – it seems that the benefits definitely outweigh the negatives for car leasing options. The vehicle industry is in a transformative stage. The old ways of the industry are making increasingly less sense as time goes on, and this has led to ideas being brought to the attention of the public that have the ability and the power to transform the industry into one that is not only up-to-date, but ahead of its time.

In some countries – like the UK and the US – subscription-based ownership models for vehicles have already been integrated in up to 10% of household incomes. Subscription-based ownership is nothing new. We use streaming subscription platforms like Netflix, hire out clothes, temporarily foster animals, and pay off smartphones with the option to upgrade when more recent models become available. Subscription-based ownership for vehicles, however, is relatively new. Despite its relative infancy in the modern world, it is expected that by as early as 2025 to 2026, vehicle subscription programs are likely to result in over sixteen million vehicles being part of the subscription services. This is a rapid pace of development, and it is one that is being more and more strongly backed by the rise in individuals who want to obtain their vehicle through driver subscription methods.

As the realisation that individuals can lease their vehicles instead of buying them takes hold, the demand for subscription-based ownership for vehicles is on the rise. The allure is easy to understand. For those that want to, the idea of being able to change your vehicle as often as every day without having to be concerned with price, registration, financing, insurance, servicing, or maintenance holds a lot of value. When an individual buys a car, there is often months of thought and even years of savings put into the idea, and even then they end up paying for a portion of the car, entering into a deal to pay off the rest of it for years. Owning the same car for years at a time has a few impacts. Firstly, it means that, when the decision is being made which model to buy, it must be considered with the near future in mind (life changes like starting a family can cause a dramatic shift in automotive necessity for most people). And secondly, over time cars begin to need repairs. As they age, parts of the engine break down and car owners need to fork out more and more money to keep them running.

Car leasing, however, allows for two things that counteract these issues with car ownership. First, drivers the opportunity to have a broader range of options at their disposal. This means that drivers have access to more vehicles for a fraction of their owned prices. The movement is not exclusive to traditionally affordable vehicles, either. Luxury car companies are jumping on the bandwagon and in fact, a high percentage of luxury vehicles have been leased in recent history as opposed to purchased. And secondly, car leasing programs allow drivers to switch vehicles whenever they want to, giving them more reliability and trust in their chosen vehicle. As one vehicle requires more repairs, they can simply switch to the next, eliminating the costly repair process altogether (provided the repairs are not necessary as a result of their fault).

The choice of being able to buy or lease vehicles is a new concept to the widespread public, and it is one that is consistently rising in popularity. Individuals no longer must adhere to the financial and long-lived ideology of committing to purchasing a vehicle. Instead, they now have the option to utilise a subscription-based car leasing option, which allows them the wiggle room to chop and change their vehicle to align with their changing needs. This is a welcome change to the many, and more and more individuals are choosing to opt for the leasing option, as it gives them greater flexibility, more options, and a sense of comfort in the way they choose vehicles. Car leasing programs enable individuals to feel more confident in their choice by giving them access to cars usually out of their price range, the option of switching cars when they want to, and the reliability of knowing that if something goes wrong with their vehicle, they can just make a call and get a different one.

The subscription-based method of ownership gives car users the flexibility, financial advantage, and reliability that owning a car simply cannot provide. Subscription-based vehicle ownership programs allow individuals to have the car of their dreams without the financial or structural liability (unless they crash the leased vehicle, in which case they are entirely liable). This revolution is allowing people the chance to put their hard-earned money into other aspects of life like owning a house, travelling, caring for their pets, and starting a family – and it is one that continues, even now, to gain traction at unprecedented speeds.

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