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Are People Going To Lease Not Own Cars In The Future?

Owning a car means that not only are you stuck with an expensive purchase, but it’s also deadweight if you like updating your ride frequently and trying out newer and better models.

With life becoming so fast-paced and with so many newer things coming out each and every day, the ability to trade in your car at a moment’s notice for an alternative is just too convenient for people to ignore and this phenomenon is just going to get more difficult to overlook, as more and more cars come out each year.

A lease car gives you the freedom to experience new technologies like EVs or get to drive the newest available model of the car you’ve always had your eye on. The bottom line is that leasing is easier and doesn’t set you in for the long haul especially if you don’t like being stuck with one car like us and love to be able to switch things up every now and then.

This is also not just us speaking about our personal preferences, as per Fortune Business Insights, the worldwide automobile leasing industry is expected to increase at a 6.9% CAGR from USD 82.01 billion in 2022 to USD 131.10 billion in 2029. Personal Contract Purchase (PCP) and Hire Purchase (HP) have traditionally been the pillars of new-car finance in the UK market, but a growing number of purchasers are now switching to leasing, also known as Personal Contract Hire (PCH), when looking for new vehicles. According to the Finance & Leasing Association, which records vehicle credit statistics, 82 percent of new cars in the UK are being purchased using PCP arrangements.

Leasing marks a new era of automobile ownership, simply because new technology and design are always evolving, things become obsolete rapidly. Consumers are encouraged to upgrade to the latest, modern items available on the market, with the finest features at the best price. It’s the same with vehicles, and leasing is an appealing alternative for customers looking for the most recent and luxurious models at a reasonable cost.

Car technology is continuously developing, and with leasing, users may routinely switch to a new vehicle with more modern amenities such as Apple CarPlay, integrated connection, lane assist, and automated systems every two or three years. Hence, leasing a car like the Kia EV6 makes much more sense especially if you’re new to the world of EVs and want to get a great car with all the latest features and specs.

In comparison, DVLA data research revealed that upwards of 6.1 million automobiles on British roads in 2019 were over 13 years old, with the total average age of cars on UK roads lying at 8.3 years. While the lifespan of a car is primarily determined by how well its driver maintains it, it is apparent that most individuals do not replace their vehicle frequently after purchasing it, whether this is because of costs incurred for new purchases or other factors like access during the covid outbreak.

In any case, they are losing out on more current features. Modern and luxurious models are available to everyone who can manage the 30-day installments through leasing, which is better for the environment too since older cars cause more pollution than newer cars, especially if the newer vehicles are electric or hybrid.

Plus, as per Bloomberg New Energy Finance, 80% of electric cars are leased, which means that electric vehicles are also revolutionizing the way we finance and purchase cars. Gone are the day when people just used to pay upfront and own the vehicle, this segment of cars has proved to car owners that leasing is a much better and more feasible option, which is why both electric cars and leasing have seen a mutually beneficial increase as both grow together.

So, if you’ve recently started thinking about adding a new car to your family’s fleet or are thinking of selling your old one and buying a new set of wheels, then definitely look into leasing, and see what the market is like where you live because chances are you’ll probably get some super attractive deals on the latest models of cars with the least amount of cost.

This is especially important if you don’t want to be tied for a few years and want an option to get rid of the car quickly, maybe due to the kind of travel and lifestyle you have or because you want a change every now and then, leasing is definitely the future, so hope on the bandwagon and make the most of the freedom it allows you.

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