Photo by JESHOOTS.com from Pexels
Here is how car leasing could change after COVID-19
Many industries could be changed by the Coronavirus pandemic and car leasing, in Arizona and beyond, could well be one. With more contactless exchanges and deliveries needed, more people wanting to lease cars with poor credit scores or more businesses needing to lease in order to get their profits back up to former levels, it is a landscape that is likely to be altered by the current climate.
Leasing a car involves a one-off payment to secure the vehicle followed by monthly payments for a fixed period, for example 36 months. Some car leasing companies buy the vehicle the customer requests and then leases it to them, making sure they get the exact make and model they desire. At the end of the period the car is returned.
How Businesses are Being Affected
Arizona has been particularly badly hit by Coronavirus, and businesses are attempting to not be affected too badly by the pandemic. This includes adapting so that they can continue trading; through delivery or working from home, for example.
1. Contactless Leasing
One way in which businesses can adapt themselves to trading under these circumstances is to become contactless. Contactless leasing could become the method of the future, with cars delivered to customer’s homes or to a garage without a driver. This would prevent having to wipe down the entire interior of the vehicle and reduces the amount of human contact involved in the leasing process.
2. Bad Credit
As both individuals and businesses are hit hard financially by the crisis, the number of those looking for a car lease with bad credit could rise significantly. With some companies offering vehicle leases to those who have suffered bankruptcy or other bad credit, so long as the person or company has a traceable address and can afford the monthly payments, they are still able to get the car they desire.
3. Business Leasing
Some businesses, whether they have had to endure bad credit or not, could look to vehicle leasing in order to get back on their feet. As the monthly costs are more manageable than paying for the entire ownership or the car at once, leasing could become the norm for restaurants wanting to offer delivery, for example.
Business needs to be flexible and versatile, and some may see leasing cars or vans to aid their income as the best way to do that.
4. Electric Cars
At least 47 of the 50 U.S. states maintain regulations that promote electric car usage. Going forwards, the sustainability and eco-friendliness of these green vehicles will become far more popular, with pledges around the world, for example Germany’s aim to have 1 million electric vehicles on the road by 2022 and the UK’s aim to only sell zero emission vehicles by 2050. The pressure is on companies to ramp up electric vehicle production and development.
Car leasing could see a rise in those looking to lease electric vehicles for environmental and health reasons.
Car leasing stands to remain a popular route into vehicle ownership around the world but may also be the most viable financial option for businesses in the future, too. Using leased vehicles to add another dimension to a business is promising but needs to be done safely to fit the current health crisis.