Why Millenials Are Turning To Car Leasing
Millenials are one of the largest generations in history and include those born between 1980 and the dawn of the millennium. They have seen rapid changes in technology, the economy, culture, the political landscape and so much more. These rapid changes have given this generation a different set of priorities from the generation that has come before them.
Study after study and survey after survey have found that Millennials are usually without attachments. They are not attached to specific brands and they don’t feel like they need to own possessions anymore. That is why we have seen the sharp rise of Spotify for music, Netflix for TV and films, YouTube for broadcasting and it is why we expect our news for free online. Millennials prefer to pay monthly payments for things that can easily be cancelled rather than buying specific items.
This is why Millennials are turning towards car leasing as a way of getting behind the steering wheel. It doesn’t offer them ownership. It offers them access, which is far more important to this generation than it has been to previous generations who have valued ownership far more.
What car leasing offers Millennials
Car leasing is a booming market already, constantly seeing massive growth throughout the market. This growth is expected to only continue more rapidly thanks to Millennials because it offers that accessibility without the attachment of ownership.
With either a Personal Contract Hire or a Personal Contract Purchase, which are both leasing options, you have the options to hand the car back. You never have to own the car. This gives Millennials a flexibility they may not enjoy if they found themselves tied to a car through ownership. It allows them to change the car they have every few years without any additional hassle.
More car for your money
Leasing gives Millennials access to both new and used car markets, giving them more choice about what they can drive. However, with their interest in technological advances and greener technology, brand new cars are more tempting. However, under normal finance agreements, these new cars would be financially out of reach.
Leasing companies like Hippo Leasing offer brand new cars through Contract Hire agreements. These deals offer Millennials the choice of getting a brand new car for cheap monthly payments before handing it back three or four years down the line. In fact, because leasing companies offer such low monthly payments on these brand new cars, Millennials can stretch their budgets to get better cars for their money than they would if they were financing.
Car leasing offers Millennials affordability, stability and flexibility. According to reports, 34% of Millenials already lease their cars rather than buying outright. We expect that number to increase over the next decade. It is expected that eventually, leasing will become to go-to option for drivers rather than car ownership. The big push for that change will begin now with this generation.
Under warranty saves you money
Car leasing allows Millennials to lease brand new cars through Personal Contract Hire. This means that because these cars are brand new, they will be under warranty. The length of that warranty depends entirely on the manufacturer, but in recent years, warranty agreements have been getting longer. For example, Kia offers seven years warranty on all their cars. This will save Millennials money on maintenance and repairs that they wouldn’t otherwise have if they bought or financed a used car. At a time when Millennials want to avoid being tied down with financial commitments, the chance of having access to cars that can easily be handed back and are covered by warranty in case of needed maintenance or repairs is always a positive.
Car leasing offers Millennials new technology
Millennials are the tech generation. They have seen the biggest leaps in technological and digital innovation compared with previous generations. They have instant access to information through the internet on their smartphones, smart watches, tablets and computers. They have instant communication with their friends, family and work through social media, Skype, video calls, text message and other instant message apps.
Millennials look for everything to be connected and that comes through the newest vehicles. Most new cars come with the technology that connects your phone to the infotainment system. This technology allows you to send texts whilst driving through voice commands as well as other features. Through Personal Contract Hire, brand new cars are open to Millennials.
If having access to a car is important to you and want a cheap affordable route to go, then car leasing is the way forward. Hippo Leasing offers great leasing deals on their huge selection of new and used cars for you to consider.