Growth Of Car Leasing Market

A Market Unexpectedly Transformed by Technology

The role of technology in steering the car leasing market towards unprecedented growth is unparalleled. Digital leasing platforms are making the process smoother and more transparent. A customer can now compare multiple leasing options with just a few clicks — something that was impossible a decade ago. But this convenience also opens the door to unexpected issues.

Automated valuation systems mean cars are often appraised differently than traditional methods, affecting residual values and ultimately the cost of a lease. While this can sometimes work to a customer’s advantage, it often throws a wrench in the expected cost savings. There’s more to this technological evolution that might not meet the eye.

Car manufacturers are embedding cutting-edge tech into their vehicles, from self-driving capabilities to AI-driven systems. These advancements are attractive to lessees who want to enjoy the latest innovations without long-term commitments. However, this creates a shifting landscape of what’s considered ‘valuable’ in a vehicle. What used to be premium features are now standard, impacting lease terms profoundly.

Moreover, technology is paving the way for the rise of electric vehicles in leasing markets. Companies like Tesla are setting new benchmarks with their electric fleets. Leases on electric vehicles have different considerations, such as battery life and charging infrastructure. Surprisingly, this transformation holds untapped potential and hurdles you might not expect in the coming pages…