Digitalisation driving growth in leasing market

New analysis has found that private ownership of vehicles has fallen from 53% to 42% this year, while at the same time more than five million vehicles have been leased in the UK alone.

According to a report published by JATO Dynamics, this highlights the evolving priorities for consumers who are increasingly placing car usage above car ownership. Part of this is the result of technological advances meaning that customers consumers now expect to consistently access new products and services. In fact, research from Salesforce found that three quarters (75%) of consumers’ site search queries are new each month.

This growing desire for new products and features can clearly be linked to the rise in popularity for leasing subscriptions.

Digitalisation doesn’t just relate to new vehicles either, with 72% of customers expecting to be able to apply for a leasing contract entirely online.

David Krajicek, CEO at JATO Dynamics, said: “The leasing sector has evolved significantly in recent years. Impacted by many factors – such as technological advances, digitalisation, and changing consumer priorities – OEMs and leasing companies must now ensure they shift away from manual processes and adapt to changing customers’ wants and expectations. Those that fail to respond to this evolution risk damaging business relationships, sales prospects, and their chances to succeed in the increasingly competitive market.”