The world is rapidly urbanizing, which means that more people are living in big cities than rural areas. This has both pros and cons for society but one way it can be seen positively is by looking at how many countries have started recommending citizens use public transportation, rideshare, or lease eco-friendly vehicles instead of driving old gas-guzzling cars.
Take this new report published by Facts & Factors (the leading market research organization) found that leasing, as part of the ride-sharing industry, will nearly quadruple over the next four years.
According to the research report, the global B2B Mobility Sharing Market (which includes Car Leasing/Car Rental, Ride Sourcing, and Ride Sharing), was estimated at USD 31.25 Billion in 2020 and is expected to reach USD 119.2 Billion by 2026. The global B2B Mobility Sharing Market is expected to grow at a compound annual growth rate (CAGR) of 25% from 2020 to 2026”
Now with this war in Ukraine, the push for EVs and more modern cars with carbon offsetting programs is stronger than ever.
Here is why the leasing market is going parabolic very soon.
The Next Big Crisis
Now that we are slowly moving out of the COVID-19 pandemic the next big issue is going to be the climate.
Billionaire and climate activist Bill Gates has made this abundantly clear in recent interviews but even as far back as 2019, he was saying that the global economy needs to shift towards greener solutions. Here’s a scary prediction he said made on Reddit interview three years ago:
Fighting against this eco-friendly trend and relying on your old inventory is going to be like a salmon swimming against a current. It’s impossible.
Take Japan where new regulations require those purchasing new license plates to do so through certified eco-friendly dealerships or look at EVs in America where the federal government is giving tax credits to electric car owners.
No matter how you slice it, the cultural zeitgeist is going one of two ways: 1) Drive more eco-friendly newer cars 2) Rideshare or use public transportation.
You can think of these two solutions as the solutions to the climate crisis; they are going to be what everyone focuses on from now on.
COVID-19’s Disruption of the Global B2B Mobility Sharing Market
The Covid-19 pandemic took a big toll on the global mobility industry…
Mandatory lockdowns, work from home, disrupted supply chain, it was a giant mess.
Well, guess what?
It’s back to business as usual. Sure, most Americans still want to work from home, but they also want the freedom to go wherever they please in a car.
If you look around you most cities were not designed for walking. Either the grocery store is too far, or your favorite restaurant is in the next town over. Americans still want a car to enjoy these simple pleasures of life. As established in the B2B Mobility report, this is going to lead them to rent or lease more luxurious cars instead of forcibly buying multiple beaters that they must rely on.
Why else do you think the White House would so comfortably recommend $40,000 EVs to Americans? It is because deep down they know driving is becoming a luxury for many people.
This leads us back to our two solutions: 1) Drive more eco-friendly newer cars, because why wouldn’t you? 2) Rideshare or use public transportation.
Full Carbon Offsetting (For non-electric cars)
We have known that dependence on foreign oil has been a stupid idea for years, but it’s only recently that we are coming to grips with that decision.
Meanwhile, not everyone is going to be able to afford to lease an electric car outright – and that’s alright. This is why carbon-offsetting solutions are going to take center stage as we make the transition towards electric or more domestic energy solutions.
We here at Leasly, for instance, ensure that every purchase comes with full carbon offsetting for each customer. This means your customers can feel good about driving your car while also helping the environment!
So, what does this all mean for you, the American dealer? Well, it means that we’re slowly moving away from our love affair with gas-guzzling cars. We still want one, but we do not need it like we used to.
This is good news for the environment and for the wallet of your customers.
“Ownership” will not be sought after in this new economy. What will be sought after is “modernization” and “environmental impact.” There’s no denying this.
If your customers are looking to lease or rent a nicer car than you can afford to buy outright, Leasly has you covered.
Our selection of eco-friendly and electric cars will make you feel good about driving and won’t break the bank. Head over to our website today and take a look at our inventory – we promise you won’t be disappointed!