Why leasing is becoming more interesting for car customers

Is it still worth buying a car? This is the question a major specialist portal will be asking in the summer of 2019, pointing to alternatives such as leasing, which are also becoming increasingly interesting for private drivers.

Modern possibilities of vehicle use

Should motorists nowadays still buy the vehicle or should they prefer to lease it? What about the alternatives of renting, car sharing or car subscriptions, which are also gaining more and more followers? Car dealers will have to seriously address such questions in 2019. They will also influence the efforts they make for their online sales and marketing. There are many alternatives to buying a car. Cost is a key consideration in this regard. When it comes to buying a car, the purchase is the biggest cost item, depending on the model, brand and type of financing. Owners should also take into account the fixed costs of maintenance. These are insurance premiums, fuel costs and expenses for repairs, inspections and care and maintenance. Not to forget the loss of value that occurs even when the car is not running at all. Its sheer age makes it more worthless, and it also wears a little bit when standing still (at least on the road in wind and weather). In the first year after purchase, new cars lose an average of 25 percent of their value, with some premium brands this so-called moral wear is even greater. Let us now look at the alternatives to buying.

From car sharing to leasing: alternatives to buying a car

There are many Car-Sharing providers; they offer the quick availability of the car for a short period of time. Apart from the fuel, the customer does not pay any additional costs to the sharing price. The car subscription model is similar, except that a slightly longer use is planned. Car sharing is about hours to days, car subscription about months to years. Both models have a comparatively high degree of flexibility, but this is expensive. With the car sharing providers DriveNow and Car2Go, for example, only one minute of use costs 33 to 40 cents (depending on the model). This is something price-conscious car drivers are well aware of. Even the usually very short-term car rental is expensive and is worthwhile for private drivers at best when on holiday at a distant location to which one has travelled by train or plane. Leasing offers a compromise between absolute freedom and flexibility and a reasonably priced alternative. It is not without reason that many car dealers have recently focused on it in their online marketing, as private individuals are also increasingly opting for it. Drivers use a leased vehicle for several years. This variant is therefore offered at the lowest price of all models beyond the purchase. Everything else - car sharing, car subscription and rental - is considerably more expensive. The leasing rate, which is based on mileage and/or a residual value calculation, includes wear and tear and the loss in value of the car. This basis for calculation appears to be extremely fair.

What does this mean for online sales in the vehicle market?

Car dealers may need to place more emphasis on the option of leasing vehicles when marketing them online. Customers are very interested, but they need tangible figures. How many kilometres can I drive for how much money? What is included in the price? What are the vehicles like? Answering these questions precisely in turn supports the online sale of leasing contracts.