A widespread surge in leasing as an ownership model is being experienced all over the world. People are now preferring to acquire property on a need-basis, as opposed to full ownership. The model is also being encouraged by governments worldwide as a way to reduce idle capital.
In Cambodia, for example, the revenue from the leasing industry grew 3225% between 2013 and 2017, from $4 million to $129 million.
The automobile industry – mainly cars and motorcycles – are contributing in a large way to the growth of the leasing industry. At a time when people do not want the baggage of owning and servicing a car or motorbike, they are turning to lease as the next-best mode of access.
This preference is being brought around by the amount of flexibility it brings. For one, it affords users to experience virtually unlimited automobile models without the huge hassle and cost of acquisition and disposal. There have, however, been concerns about changing conditions of cars and bikes brought about by use by different handlers. A couple in Ecuador, for example, was filmed engaging in an indecent act atop a motorcycle which was in motion. If such a machine was leased, other users might turn it down in future.
That said, leasing usually affords users the same privacy that they would get in a private car. They can, for example, work on their own schedule without stretching the cost, something that would not be possible if they went for a taxi cab instead. Moreover, once the user is through with using the car or bike, they return it to the leasing company which in turn takes care of repairs and maintenance.
With the expansion of internet capabilities and growth of leasing companies, this new model of automobile service acquisition is only destined to grow bigger. Government encouragement of the model is also a big boost.