Drivers could be putting money towards cars they will ‘never own’

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With the rising costs of owning a car, many drivers could be starting to re-think the idea of private car ownership. There are plenty of other options out there at the moment including leasing. However, an expert has warned that by moving away from private car ownership, drivers could be putting their money towards a car that they will “never own”. 

Dorry Potter, an expert at National Scrap Car, said: “People’s attitudes and buying habits are forever changing so it can be hard to predict the changes that will happen in a few years.

“Leasing has become increasingly popular in recent years but as with most things, leasing vs private ownership both have their pros and cons.

“For younger generations, there may be more of a shift away from private ownership.

“With improved transport and the rise of hire car services such as Zip Car, there is less of a need to purchase cars.”

Ms Potter also stressed that not having a privately owned car gives drivers more flexibility and freedom to choose other methods of transportation that may be lower in carbon.

This includes sharing cars, public transportation, walking and cycling. 

The expert added: “For those that rely on a car for work etc, leasing might be a better option for them rather than buying a car outright.

“A lease deal is essentially a long-term rental. Personal Contract Hire (PCH) is the main way of leasing a car, and this sees you pay a deposit followed by a series of monthly rental fees for an agreed amount of time.

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“This is typically two to four years, while you can vary the size of your deposit, with a larger down payment resulting in lower monthly outgoings.

“At the end of the lease period, you’ll hand the car back, with no contractual option to purchase the vehicle although there may be the option to purchase if you wish.

“Similar to the housing market, a lot of young people are now opting to rent rather than buy homes.

“The downside of this is that you are putting money towards a car that you may never own.

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“If you are someone who likes to change their car more frequently then leasing a car may be a much better option as you will be able to get a new one every few years.”

Car ownership could also be set for a massive change with pay-as-you-go services.

Richard Falconer, Managing Director at Co Wheels Car Club, previously said that a pay-as-you-go model allowed drivers to enjoy vehicles “without the commitment of owning it”.

Experts also stressed that car subscriptions could be a big boost to electric car ownership.

Mr Falconer said: “Is a pay-as-you-go subscription the future of car rental? The answer is yes.

“The beauty of a pay-as-you-go subscription is that you can enjoy all the benefits and conveniences of a car without the commitment of owning it.

“You can book a vehicle wherever and whenever you want, for as long or as little as you like.”

He added: “A pay-as-you-go subscription is perfect for those people who tend to use public transport or bikes.

“When in need of a vehicle though, whether for a weekly shop or an outdoor trip, this subscription offers you the liberty to book a car at a time and place that best suits you.”

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