Change is in the air regarding vehicles. It seems that more people are opting against car ownership than ever before. Some of these people are leasing instead of buying, which is disrupting the auto industry.
There are a number of reasons this may be happening; for one, millennials are relying on car-sharing applications rather than their own vehicles.
Why are People Turning Away From Car Ownership?
Car sharing services are definitely one reason people are turning away from car ownership, but there are others. Some people are simply starting to see how economical it is to avoid car ownership.
Owning a car comes with a number of responsibilities that can become quite costly in the long run, such as insurance. A person who owns a car needs to pay a specific amount of money to insure their car every month. Furthermore, a person also needs to worry about car maintenance costs and parking costs just to name a few more things.
It should be noted that car ownership usually means that an individual has to come up with a large downpayment or borrow from a bank to own a new vehicle. All of these points make it easy for a person to reconsider the idea of purchasing a new car.
Keep in mind that debt is a real crisis that is affecting many people or is going to affect them soon enough, which further solidifies this trend against car ownership.
Why are People Turning To Car Leasing?
The idea of car ownership may not be as strong as it once was, but that does not mean people are abandoning new cars altogether. Many people seem to be turning towards leasing for a number of reasons.
Some could point out that the car sharing industry wants people with newer cars to sign up. This could be one reason some people lease a newer vehicle. Still, this is not the only reason why leasing a vehicle is so attractive. Some love the idea of writing off the payments at the end of the year, especially if they are using their car for business purposes like ride-sharing.
It should also be noted that leasing usually means that the leaser does not have to worry about a large downpayment. Additionally, those who lease may end up paying a lot less for their vehicles, especially if they use lease deals from eAutoLease. It should be noted that those who lease also do not have to worry about car maintenance costs, which are usually included in the lease terms.
Car leasing is not new, but the concept is becoming increasingly popular, especially amongst millennials. The concept of leasing a car is akin to subscription services that allow the user to rent the newest model and simply trade that in every few years.
The reason this concept is becoming more popular is that many services are moving towards this type of service; for example, smartphone owners usually trade in their phones for newer models every two years. There are also other popular subscription services out there like television streaming services just to name one of many.
All of these services have made the idea of paying monthly while being promised the ability to get the newest model a few years later quite normal.
Leasing is not the only thing that is increasing in popularity. Some people are opting out of leasing altogether and choosing to rent a car instead. Of course, renting a car could come with limitations like only driving within the state. There is no telling how much more the car industry is going to change, but it is easy to see that change is brewing.