New deals on wheels - the evolution of car ownership

Cars have traditionally always been more than just vehicles. They have been objects of desire, inspiring devotion, conferring status, penetrating the psyche of our collective consciousness. But attitudes about mobility are shifting, and car ownership is no longer the exalted goal of times past. Increasingly, people just want the best possible solution to get from A to B, with waning emotional attachment to the method of travel. In order to reflect that, the car industry may have to radically adapt its practices.

The automotive business model hasn’t really changed since the days of the Model T. Manufacturers produce cars which are sold more or less directly to customers, who then become the outright owners. Leasing has grown in popularity recently, but exists predominantly as a mechanism to reduce the barrier to purchase. Ultimately, the industry’s business model depends on obsolescence and volume, and is implicitly inefficient as a result. What’s more, it’s a model that precludes OEMs from the bulk of expenditure over a vehicle’s lifetime.