2019 is changing several industries across the world. Its high-time we discuss the reforms it will bring to the car leasing industry. The automotive industry is in the midst of major changes thanks to recent innovations, and leasing market is not very far behind. Following, we are discussing the six trends that will reshape the car leasing market for 2020.
1. Self-Driving Cars
Internet OF Things and Artificial Intelligence has made an impact on the automotive industry. It is leading to revolutionary changes including the advent of electric vehicles and autonomous driving. The use of self-driving cars and those powered with AI will change the insurance policies. Yes, the insurance industry might have to revise its business model. Electric and hybrid cars are more valuable to their low CO2 emissions.
People are now more concerned about the environment than ever. In 2018, around 80,000 mild and hybrid cars were sold with less than 5,000 plug-ins and extended-range electric cars sold in the UK.
There is a growing demand for these cars. Car leasing companies will make some changes. It might devalue electric cars but leasing them will save the consumer from major spikes in value. This change will increase the sale of electric cars.
1. Leasing to Individuals
Automotive industry prefers leasing to individuals. The fact is, leasing companies are making offers to customers without even VAT numbers.
Young people make up the most leasing customers. They want multi-benefit leasing offers. Companies crediting leasing options for individuals make room for flexibility and convenience. The services are similar across the business, but there should be a certain degree of adaptability for customer’s needs. Fewer restrictions on duration, mileage and ad hoc let you trade a used car.
2. Used Leasing Cars
A recent report showed that there is a growing trend of offering used cars in the leasing marketplace. We believe this trend will take over the automotive industry in the future. It’s true the market is growing slower than what we expected, and new car registrations aren’t all-time high.
The fact is, people no longer want to pay a high figure to a major market player. Leasing companies realize this trend, and they are exploiting the opportunity to lease used cars.
3. Mid-Term Leasing
Leasing a car in the medium term is another growing trend. This car leasing method lies between long- and short-term car leasing. Last year, there were over 70,000 car leasing contracts only in Italy. The flexibility and lack of time and mileage restrictions make mid-term leasing a popular option.
It is attracting a wide range of audience. If you want to lease a car, you better research the market and assure you are leasing from a reliable option. Intelligent Car Leasing offers you affordable leasing plans for both personal and business lease. It offers fast processing and tailors its contract according to your requirements.
Technological innovations are constantly changing the way of our life. The case with the car leasing industry is no different. Leasing companies will use black-boxes and obtain the following information:
- Vehicle’s Geolocation
- Fuel Consumption
- Driving Habits of Buyer
- Crash Dynamics
- Maintenance Routine
- Thief Location
These vital stats will equip the company to handle claims and avoid getting ripped from their clients.
5. E-Car Subscription Service
You can process short-term leasing contracts right from you’re mobile. Still, there will be new forms of mobility also to car sharing. These will include pay per use or a subscription-based service. This way, you won’t need to sign a contract to lease a car for the long term. It will only work on a short-term basis. With the focus on used cars, this might be a major shift in the leasing industry.