The automotive market is constantly changing, and, in the coming years, it is expected to become more competitive. The shift towards renewable energy, environmental protection laws, and new technology are all slated to disrupt the status quo. Additionally, car manufacturers are also trying to keep up with consumer wants and needs through innovation.
When it comes to consumer ownership, leasing is also increasing at a steady pace in the country. It appears that more people are moving away from purchasing a car, and instead choosing to lease. NJ car lease companies are more than eager to accommodate consumers who are looking for the easiest way to drive a new car.
Amidst the rise in lease consumers, some trends are predicted to change the leasing market in the years to come.
Self-driving and electric-powered cars
If you go to any car leasing NJ company, you will likely get an option to choose a hybrid vehicle. Yes, it is a step-up from conventional gas-powered models, especially if you are concerned about the environment. Hybrids have not completely taken over the market yet. But, as more cities around the country adhere to strict CO2 emission guidelines, car leasing companies may also welcome the higher demand for electric vehicles and self-driving cars.
In fact, leasing is perfect for these types of vehicles because of a couple of reasons. First, leasing allows consumers to switch cars and try new technology frequently. Second, electric cars devaluate faster; hence, leasing provides consumers with the buffer they need from higher financial loss.
In the past, leasing used to cater more towards businesses. Nowadays, leasing companies cater more to individual consumers. A key market driver is the younger consumer demographic. In the US, a ‘millennial’ is more likely to lease than buy a car. It makes perfect sense since most young people cannot afford a car loan which requires a massive upfront downpayment.
The automotive industry is no stranger to being at the forefront of digital technology. As such, there is also no doubt that car leasing in NJwill be revolutionized by new technology. For example, in Europe, leasing companies use a device called a ‘black-box’. These devices provide essential information, such as:
- Deadline for vehicle maintenance
- Theft prevention
- Crash dynamics
- Driving style and behavior
This technology primarily protects the interests of leasing companies, but at the same time makes the lessee more aware of the vehicle’s condition throughout the lease term.
Leasing to small and medium enterprises
Apart from the growing private market, car leasing companies are also welcoming lease contracts from small and medium enterprises. Opening up the avenue for these businesses to lease cars has tremendous potential. SMEs will benefit from the tax break offered by car leasing, and leasing companies can also customize their business model to accommodate the unique needs of these enterprises.
The expanding market of car leasing for both private and business consumers will not only keep the industry afloat but will also contribute to growing overall revenue.