The escalation in prices that new cars are experiencing, added to the stock crisis at dealerships and the prevailing economic uncertainty, open the door to second-hand car leasing. A booming market that offers an escape route for drivers who do not see a feasible option, the traditional purchase or the renting of a new car.
The automotive sector is facing numerous challenges in Europe. Some challenges that are transferred directly to the consumer in the form of problems. And it is that these are turbulent times to buy or change cars. The stock crisis at dealerships continues to make a dent in the sales figures of the brands. A shortage of new cars caused by the global shortage of microchips and semiconductors.
The latest statements made by senior Volkswagen officials show that the microchip crisis will not be solved in the short term. To this we must add the price escalation not only of new cars, second-hand cars are also becoming more expensive. And as if that were not enough, there is the uncertainty generated by a complicated economic outlook. Inflation, rising prices of raw materials and/or energy, etc… A person who needs to acquire a vehicle or change the one they already have must deal with all these issues.
Car leasing as a way out of Europe’s problems
In recent years, especially since 2020 marked by the coronavirus pandemic, renting has been seen as an escape route for all this uncertainty and problems prevailing in the Old Continent. Nevertheless, leasing companies also face stock problems and long delivery times What are the manufacturers giving? This has a direct consequence. Y is the available supply reduction.
We should also keep in mind that the formula for New car leasing is not a valid option for everyone. So what are we left with? Stock crisis at dealerships, price rises… This is where the incipient market for second hand car rental. The economic situation has forced many drivers to opt for the “pay per use” model as a solution to have a comfortable and, above all, accessible form of transport.
The renting of second-hand cars is situated as an outlet for those citizens who need to have a vehicle available as soon as possible and they are not willing to face the prices that are handled in the market for new cars. Now, we cannot ignore the fact that used cars are also becoming more expensive and, in many cases, they are not directly devalued. But, despite this, the used market, from the point of view of renting, continues to allow access to a car without large outlays.
Immediate availability and contained prices are the main advantages of renting used cars
Automobile manufacturers continue to work at full capacity to solve the enormous delivery times that are occurring in certain models and/or versions. In some cases, the barrier of half a year is overcome. Something unsustainable for much of the population. In this context, many citizens have been directly expelled from the new car market to the used one.
Putting the spotlight back on the renting of cars for the occasion. For the most part they are vehicles with an average of between 3 and 4 years old that come from renting. Some of them can be classified as pre-owned cars. And in the face of the fear of a catastrophic economic scenario, the renting of these used vehicles can be contracted from approximately 6 months. A short-term contract to avoid being stuck with a high monthly fee if our financial situation has changed.
In times of crisis, the used car market is one of the great beneficiaries. It is not ruled out that second-hand car leasing will experience a significant boost in the short and term if the automobile industry in Europe continues to deal with all the problems described throughout this article.