The Rise of Post-Covid Car Leasing
After almost two years of uncertainty brought about by measures to defend against Covid 19, the UK’s motoring sector is almost back to what it was pre-pandemic. Although there have been many false starts, with people told to work from home, head back to the office, and then work from home again, early 2022 looks like being the point where employers are finally asking their staff to come back to work. For the majority of British workers, this means getting back on the road. With vehicles under-used for long periods, leasing is proving an attractive option, at least in the short to medium term.
Far-Reaching Changes
In many ways, the Covid pandemic brought to a head what was already a time of great change in the car and van market. Announcements like the banning of diesel vehicles, and the UK’s commitment to zero carbon emissions by 2050 meant the writing was already on the wall for traditional car sales. As people’s vehicles started to depreciate, they were already wondering if the next MOT check would be their last; maybe their next car would be electric or even driverless. Perhaps car sharing or public transport might have been people’s best option.
Perhaps ironically, the issue of public transport has been particularly thrust into the public eye during the pandemic, with some unexpected results. Initially, government advice was to avoid public transport unless absolutely necessary, which meant only key workers should use it. Combined with high prices and unreliable services, this directive has meant that huge numbers of workers are unlikely to use public transport again. Indeed, a survey carried out during the height of the pandemic showed that, of the 40% of travelers who actually use public transport, a huge 43% don’t want to anymore.
As well as existing issues of cost and reliability, the fact is that people are worried about catching Covid 19 on buses and trains; especially of other travelers who refuse to wear masks. The government even advised people to find a safe space in which to travel; for millions of people, this translates into driving their own car.
Wider Choice for Motorists
With this potentially huge market coming online, the motoring industry is very well placed to satisfy that market. The days of physically visiting a car showroom are long gone; it is now very easy to source a vehicle and have it delivered to the door. Again, the memory of Covid 19 means that many customers much prefer this remote method of obtaining what they want. Vehicles can be new or used; with the advent of online MOT status checks, buyers know exactly the condition of the car, van, or even motorcycle they’re buying. These will even show up any issues the vehicle is prone to or has suffered in the past for the best MOT companies like checkmot.com.
Another pre-pandemic shift in the market was vehicle leasing. Again, this has been put into sharp focus with the re-opening of society. Before the crisis, motorists were considering their options regarding types of vehicles for the future, and leasing gave them time to assess the best way forward. This is still the case, except now there is an added risk of financial uncertainty in many parts of the economy. As people look at perhaps changing their jobs and/or location, the thought of committing to buying a new or used car is often something they will avoid.
Contact-Free Process
In many ways, the car leasing industry is already forcing the pace in terms of customer experience. Leasing companies offer a completely contact-free customer journey, including digital showrooms and online streaming of new models from major manufacturers. As many of these makers will sell straight to leasing firms, the customer often gets the first choice of state-of-the-art vehicles. Increasingly, these will be electric and perhaps driverless, and just the spec the customer is looking for.
With tailor-made leasing terms, this solves one of the age-old problems of buying a car; depreciation. It’s a well-worn adage that, as soon as a car leaves the forecourt, it halves in value. That situation is avoided completely when leasing. Also, the pressure on manufacturers to produce the cleanest, most efficient, and connected vehicles will only increase as time goes on; therefore, it will be much easier to drive a state-of-the-art car with a lease. For many motorists, this could be the best way forward.