This phenomenon has been driven by the rise in interest rates as a result of adjustments in the monetary policy of the Bank of Mexico (Banxico), pressured by world inflation and which is expected to make credit more expensive and therefore reduce the purchase of cars. and leasing is favored, which is in line with the preference of this generation to avoid long-term obligations and only adjust their expenses to their needs.
Finally, multifaceted digital natives, entrepreneurs and leaders, may not require a car for more than a few months and then decide to emigrate or have other needs.
According to BitCar, car leasing has been the financing option that has evolved the most in the current economic conditions, the impact is such that, of the total units financed in Mexico in the first quarter of 2022, self-financing represented 1.8%, with an advance of 13.4% compared to 2021, and leasing represented 7.4% of the total, registering a 32% increase in units placed during the past year.
This phenomenon would have been unthinkable in other times and who would rather rent than buy a car? However, the benefits offered by this system are many. Leasing or leasing allows the use of a vehicle in exchange for rent and enables a user to access the car he wants and not the one “that reaches him”.
Additionally, as I already mentioned, it offers the possibility of not making a long-term commitment, being able to renew the car frequently and opt for a better range without incurring a debt. You also avoid paying a down payment that usually ranges between 15 or even 30 percent of the value of the vehicle depending on your credit quality, which in many cases makes it impossible for the potential buyer to access the unit. This financial scheme has been used mainly by companies, since it represents a fiscal benefit.
The model is focused on the utility of the cars rather than their ownership, platforms such as BitCar offer the possibility of choosing between more than 900 new vehicles of different brands, with terms of 24 to 48 months, monthly payments around 14% lower than with a credit, with the possibility of changing, returning or acquiring at the end of the contract and with the particularity that it is aimed at individuals.
According to data from the global automotive consumer study prepared by Deloitte in 2022, younger consumers between 18 and 35 years of age are more interested in subscription services, specifically 6 out of 10 of them prefer it because it allows them to access to a different make of vehicle.
This is as disruptive as it is useful and in the case of BitCar it also includes another novel aspect such as technology, which allows the user to carry out the entire process digitally thanks to the integration of solutions for advanced electronic signature and delivery of the unit where choose the customer. Thanks to these new proposals, many will no longer have to ask their uncle for a truck if they intend to have a crush with friends or an executive car if they go to a meeting, a whole tailored suit that we will have to try on.