The New Car Ownership Model
There is a new ownership model that smaller firms and companies are capitalizing on.
Known as the collaborative consumption or access-based consumption model, this new mode of ownership, or non-ownership, paradigm is currently promoted by on-line applications such as Spotify, Netflix, Zipcar, and Airbnb that provide provided consumers shared access to various services such as songs and movies. Instead of buying actual products, consumers now pay for services that allow them to experience these products. It provides cheaper, temporary experience of enjoying a variety of entertainment products but at the same time provides flexibility since consumers need spend too much on goods and end up stuck with these goods for considerable periods.
Apparently, this has also become a mindset in other utilities. Take for instance the fact that car rental and lease has also increased considerably. As early as 2014, around 25% of car purchases in the U.S. were leased, the highest since 2000, and there is an average 20% increase in all lease and rentals of all major car manufacturers. And although leasing and rentals in the past were popular transaction only for luxury cars, cheaper average cars have also become common choices for rentals and lease.
In Singapore, car rentals and lease have also become lucrative business ventures. Of course, there was a time when car lease or rentals were very risky deals since they usually involved 2nd hand cars. But this has changed dramatically. Various on-line shops and services have now made hard to find parts more easily accessible and affordable. It has also made purchase time of spare or replacement parts a lot quicker. Even machines, equipment and other technologies for car repairs have also become more and more readily available. These have significantly improved the capacity of car rental and lease shop in Singapore in terms of maintaining the quality of vehicles.
Commonly, car rentals are availed for special family events such as weddings and involve renting of vintage or luxury cars, that provide additional awe and memory to the once in a lifetime occasions. Van or SUV rentals on the other hand have also become a popular choice for families or groups out for long road trips. Intercity travel, trips from provinces to urban centers for business meetings or airport ferry have also become a good reason to rent cars. For those staying in a new area for extended periods, car lease is an obviously good option.
The main advantage of car rentals and leases is the fact that, compared to owning a car, there are no depreciation losses when renting or leasing. In other words, the driver does not need to worry about wear and tear that hurts the value of the vehicle since as soon as the rental contract is complete, the maintenance and other responsibilities immediately returns to the rental company unless in cases of accidents where the driver is at fault. Car rentals and leases in Singapore are also significantly cheaper since insurance is covered by the rental company. And of course, car rentals provide a wide variety of choices in models and brands. Various car rental and lease companies in Singapore also offer additional perks such as discounts on long-term rentals or lease, rewards and benefits program, customer loyalty premiums, special promos including credit or debit card rewards and discounts.