There are several reasons to believe that personal car ownership is going down and will continue to do so in the years to come. With the cost of everyday living and expenses going out, most consumers are concerned and thinking before making big commitments. Owning a car is the second big purchase people do after buying a house.
Here are some findings from a survey shared by the RAC
One in four car owners (23%) has already reduced or planning to reduce the number of cars owned in their household.
61% say that tightening personal finances have made them question the whole idea and need for car ownership.
Drivers are using their cars lesser than before and seeking a low-cost and flexible option for ownership.
Before we jump into the future of car ownership, let us understand what is peer-to-peer car sharing.
What is Peer to Peer Car Sharing?
Peer-to-peer (P2P) car sharing is a concept where individuals can rent out their personal vehicles to others when they are not using them. This allows people who need to use a car occasionally but do not want the expense of owning one to rent a car from someone who owns a car but does not use it often.
P2P car sharing typically works through an online platform or app, where car owners can list their vehicles for rent and potential renters can browse and book available cars for rent. The platform or app also handles the payment and insurance for the rental, making the process easy and convenient for both parties.
Interested in long-term car rental in Singapore?
Rent a car for as low as $898 a month!
What are the benefits of Peer to Peer Car Sharing?
One of the main benefits of peer-to-peer car sharing is that it can help to reduce the number of cars on the road. By allowing individuals to share their cars with others, the need for each person to own their own vehicle is decreased. This can lead to less traffic congestion, better air quality, and a reduction in carbon emissions.
Another benefit of peer-to-peer car sharing is that it can provide a more convenient and cost-effective option for people who need to use a car occasionally, but do not want the expense of owning one. Instead of having to purchase, insure, and maintain their own vehicle, individuals can simply rent one from another person on a short-term basis.
Additionally, peer-to-peer car sharing can also be beneficial for individuals who own a car but do not use it very often. By renting out their vehicle to others, they can earn extra income and offset the cost of owning a car.
Reduces the number of cars on the road
Provides a more convenient and cost-effective option for people who need to use a car occasionally
Allows car owners to earn extra income by renting out their vehicles when they are not using them
Lead to less traffic congestion and better air quality
Can reduce carbon emissions
Provides a wider variety of cars to choose from, as renters can choose from privately owned cars
Provides an alternative to traditional car rental companies
Encourages car owners to take better care of their cars as they are renting them out.
Why has 'peer-to-peer car sharing' gained popularity?
There has been a growing popularity of ride-sharing services in the last decade. On-demand services are changing attitudes toward car ownership. This is because people are less enamored with making large capital purchases. They are happy to explore companies and apps that allow easy and quick hail a ride or rent a car without the need to own their own vehicle. People are less keen to take the burden of car breakdowns or glitches that comes with ownership.
The shift in thinking is more because of the way millennials think about owning a car.
Millennials chose price, flexibility, and convenience as their key priorities. All of these form the crux of car-sharing and ride-hailing services. Since the younger generations are more privileged than their older counterparts - technology savvy, smartphones with Netflix and Spotify, and a host of apps to access, their behaviour and transactions will be on mobile first.
On another note, when we look at city dwellers, driving is less fun and more of a chore. To transport something, visit a relative, shift houses, or commute to work. Travel from point A to point B. Traffic is terrible and unless they have a lot of money to purchase a sports car to show off, buying a regular sedan to get the job done is not exciting.
ALSO READ: How To Select A Fuel-Efficient Car In Singapore For Car Sharing & Renting
One of the other reasons is the increasing availability and adoption of electric vehicles (EVs) and car-sharing services that are available. As the range of cars improves, more people may opt to use them for transportation instead of owning cars and having to maintain them. Car Sharing has the potential to greatly reduce the need for personal car ownership because of the comfort and convenience it brings along.
With many cities also investing in better public transportation options it has become more accessible for people to get around without owning a car.
The development of the sharing economy, and specifically the emergence of peer-to-peer car sharing, has made it possible for people to rent out their personal vehicles when they are not using them, allowing others to use the vehicle instead of having to purchase their own.
The peer-to-peer car-sharing market is expected to continue growing in the coming years, as more people become aware of the benefits of this concept and more companies enter the market. Currently, there are several well-known companies such as Drive lah, Drive mate, Turo, and Getaround, that are leading the way in peer-to-peer car sharing.
Not to forget, the growing awareness of environmental issues and the need to reduce carbon emissions is leading many people to rethink their transportation choices. Cars are one of the largest contributors to carbon emissions, and as more people become aware of the environmental impact of personal car ownership, they may choose to use alternative forms of transportation instead.
All in all, the trend towards ride-sharing, electric vehicles, self-driving cars, improved public transportation, bike-sharing and peer-to-peer car sharing, and long-term leasing combined with the growing awareness of environmental issues, are leading many people to question the need for personal car ownership. It is likely that we will see a decrease in the number of people who own their own cars.
The future of car ownership looks promising for peer-to-peer car sharing as more and more people are starting to embrace this concept. As technology continues to advance, it is likely that we will see more innovative solutions that will make it even easier and more convenient for individuals to share their cars with others.
In conclusion, Peer-to-peer car sharing has the potential to revolutionize the way we think about car ownership and transportation. Considering that the typical car is parked and idle for 95% of its lifetime, it becomes clear just how inefficient automobiles are and why they must be better utilized.
With benefits such as reduced traffic congestion, better air quality, and cost-effective options for car usage, it is likely that we will see more growth in this market in the coming years. However, there are still challenges that need to be addressed before it can become mainstream, but with advancements in technology and legal frameworks, it is likely that the future of car ownership will be shaped by P2P car sharing. Make the most out of car sharing with Drive lah, the largest car-sharing and car rental app in Singapore.