Could Leasing With Friends Be The Future of Private Car Ownership?

Raising money, grabbing a lift to work, updating your wardrobe, even finding a home for your pet while you're away; you don’t have to look far to find a service that’s part of the ever growing sharing economy.

Consumers are going crazy for the peer-to-peer model which is allowing anyone who has some value to offer to enter the marketplace and earn a little extra cash, or simply help someone else out.

From an ecological standpoint the benefits are clear. Huge quantities of new stuff has been kept off the shelfs due to the effective cycling and use of existing resources. And from a consumer perspective, the benefits are just as juicy.

The days of believing we need to own stuff is coming to an end. We’re starting to clock on to the fact that our lawnmowers gather dust in the shed for 350 days of the year, 75% of our clothes go largely unworn, and our cars spend more time on the driveway than on the roads.

The housing ladder is crumbling, with over 50% of ’generation rent’—otherwise known as generation Y–set to be living in properties owned by private landlords by 2025. The same goes for our cars—with the number of drivers opting for leasing contracts rather than buying outright on an upward trend.

A lot of the services thus far have offered a steady transition into sharing economy. We share the existing resources of others, dipping in as and when we like. The next—somewhat more uncomfortable—move demands a complete shift in attitude from ownership to access. This is collaborative consumption.

Collaborative Consumption Comes to Car Leasing

From local food purchasing to art studio rentals, collaborative consumption has been slowly making its way toward bigger and bigger investments. And naturally, it's now arrived at car leasing.

Ford are one of the first car manufacturers to experiment with car-sharing in a new scheme which aims to shake up the automotive market.

The scheme known as ‘Ford Credit Link’ was announced, alongside other initiatives, at the North American International Auto Show at the start of 2016. It’s set to launch this month, offering leasing options on vehicles to self-organised groups of three to six people.

Ford is among the big players in car manufacturing, with around an 8% share of the automotive market. But the giant has spotted an opportunity to tap into the much larger $5.4 trillion market of car-sharing services, currently dominated by services like Zipcar and Uber.

Is Sharing a Car Really a Good Idea?

To answer this question, Ford will pilot the scheme in Austin, Texas, and first offer 24-month leases to groups. The groups are expected to vary from family households of multiple drivers and neighbours with needs for vehicles such as pick-up trucks, to friends, co-workers, and college students.

Ford anticipated disagreements and conflicting schedules to be a challenge, so they came up with an app to help manage the use of the vehicle. Groups will be able to use the app to reserve a drive time, check its maintenance, keep in touch with other members, and even make payments.

People are already sharing everything—it’s just a matter of time before that includes our cars. Ford’s pilot scheme will be the ultimate test of whether or not we are ready to take that leap. But in the meantime, leasing will remain the most cost effective, green, and convenient form of using a private vehicle.

If you’d like to find out about our leasing options, leave us a comment, send us an email at info@marshall-leasing.co.uk, or call us 01480 414541.