FINANCEACAR Reports Millions Plan To Use Rather than Own Cars

The purchase last week by Avis of the world’s leading car-sharing business for $500 million and BMW’s recent launch of “BMW On Demand” (which rents BMWs for $35/hour) confirms a recognition by large auto companies that drivers are moving towards a model of ‘car usership’ as opposed to ownership. FinanceAcar research suggests that this trend towards usership will continue to gain traction with mainstream motorists.

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The trend away from car ownership towards car usership will continue and this was confirmed by the fact that 60% of new cars sold in 2012 were taken on short term finance options..."

London, England (PRWEB) January 10, 2013

When most were still shaking off the excesses of New Year celebrations Avis, the US car hire giant, was (according to Reuters) announcing its $500 million bid to buy Zipcar, the car-sharing business operating in cities across the US, UK & Spain. Car-sharing is taking off around the world with “BMW On Demand” offering BMW’s by the hour and other schemes showing ‘usership’ instead of ownership is set to become big business with Avis projecting the global market to grow to $10 billion within a few years as millions take to on-demand motoring.

Car sharing allows customers to rent cars at an hourly or daily rate and park in convenient reserved spots. Technology plays a huge part in delivering the service with cars remotely locked and unlocked using a smart card or app on the user’s mobile device. Simon Norman from FinanceAcar stated “Our customer research suggests that the trend away from car ownership towards car usership will continue and this was confirmed by the fact that 60% of new cars sold in 2012 were taken on short term finance options such as PCP. Drivers are looking for low cost, shorter term alternatives that don’t require large upfront investment such as car sharing, short term leasing or car finance deals where ownership is not transferred. Therefore, this is a good strategic move by Avis”.

Commenting on its proposed purchase, CEO Ronald Nelson said, “We see car sharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company”.

Simon Norman from FinanceAcar explained “In essence the car rental industry has been losing business to customers attracted to a service offering far greater levels of flexibility and convenience. It also speaks volumes for the remarkable rise in using rather than owning cars. For those seeking alternatives to owning a depreciating asset but need use of a car on an exclusive basis then car leasing is worthy of consideration. New car leases are typically offered on 2-4 year terms with fixed monthly payments that can even cover the costs of servicing and maintenance”.

With a lease, unlike other cheap car finance options such as PCP, hire purchase and car loan, the vehicle remains owned by the leasing provider. At the end of the lease term the car will be collected by the leasing provider leaving the user free to choose their next new car without the need to sell or part exchange their existing vehicle before taking receipt of a replacement.

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Financeacar.co.uk is the market leader in matching the cheapest car price and the best finance from top lenders to create unbeatable monthly deals. Financeacar (http://www.financeacar.co.uk) allows personal and business users to quickly compare vehicle costs and submit an online credit application that will not leave a mark on your credit record.


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  • Mark Peatey
    mark@financeacar.co.uk
    447932656523
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