The car rental market is constantly changing. It is now common for individuals to share or rent their car to other people via sharing applications or rental vehicles such as drivy.co.uk that allows you to benefit from peer-to-peer car-sharing. The main objective is to make your vehicle profitable during periods of non-use and save money when renting.
It is estimated that today, 1 out of 5 cars in circulation is either shared or rented by an individual to another individual. So, is this evolution a risk or an opportunity for car dealers?
Private car rental: why it’s trendy?
Car rental between individuals is booming famous in England. It is part of the movement called “collaborative economy”. Its principle is based on peer-to-peer sharing or exchange with or without monetary exchange.
Collaborative leasing has many benefits for the consumer, financially, environmentally and socially. Its main goal is to reduce over-consumption.
The car rental market is evolving
The success of car-sharing, carpooling and private car rental websites and applications shows that the way English people look at cars is changing.
The use value takes precedence over the need for possession. But is it because of the awareness of environmental constraints or is it a true sociological change? In both cases, automotive professionals must adapt to this market development.
We are in the age of the collaborative economy and the automotive sector is no exception. In the big cities, renting has become the best means of transport, the possession of a vehicle being an important load in relation to its use.
Indeed, between the direct costs of use (gasoline, insurance, wear, etc.) and the indirect costs (parking, tickets, etc.), a vehicle can quickly be expensive. Especially when you know that 90% of its real use is devoted to the journey from home to work.
Apart from owning his own car, the individual therefore has 3 other alternatives:
- rent a vehicle according to its need for use;
- rent a vehicle to another individual;
- share your car or share someone else’s car via carpooling.
Collaborative Leasing: An Opportunity for Car Dealers
New technologies are a real asset to individuals and must be strength for car dealers.
Faced with alternative vehicles, why would not car dealers become players in this rapidly changing market? How? By proposing to the short-term rental some models of their car park. 3 advantages to this:
- make the “dormant” stock profitable;
- respond to the request of certain individuals;
- Retain its rental customers who can become buyers at any time.
The reflection is open and some traders have already taken the step.