Could autonomous vehicles change the face of short-term car leasing? The future introduction of self-driving vehicles within the leasing sector could bring many benefits to consumers and providers alike. Autonomous vehicles used to be something only reserved for science fiction, but thanks to rapid advancements in motoring technology, the potential widespread use of self-driving cars is now very much a reality for drivers worldwide.
While we’re still some distance from a global rollout, the development of autonomous vehicles is something those in the motoring industry are keeping a close eye on—in particular, those in short-term car leasing. Driverless cars have the potential to change the face of this industry and could bring about a wealth of benefits for companies and consumers alike. Let’s take a closer look at this to determine exactly what advantages are on offer and when we might expect to see smart vehicular tech in use.
Short-Term Car Leasing Explained
As the name suggests, short-term car leasing involves an arrangement between a provider and a customer by which the latter is leased a vehicle over a short timeframe, often ranging from a few months to a few years. Car leasing, in general, is often the preferred option for many, as it covers everything from leisure use to commuting and even business fleets.
What’s more, customers can gain access to a wide range of cars that may otherwise be off-limits to them in the buying markets. The fixed payment schedules are something many prefer, as they help with budgeting and avoid the unexpected costs that can come through car ownership. In other words, the demand for short-term car leasing is there, but how might autonomous vehicles fit into this business model?
An Ever-Evolving Technology
Fully autonomous vehicles—or “level 5” automation, according to this chart from Interesting Engineering—are those which operate without any human interaction. This is accomplished through a multitude of sophisticated hardware, software, cameras, radar systems and sensors that constantly process data in order to drive a car safely and securely. Once such vehicles are cleared for legal use on our roads, they could easily be an option for short-term car leasing.
In fact, it may well be that autonomous vehicles will become a preferred choice for those looking for the newest and best cars to drive without the typically hefty buying price tags. The above piece from Interesting Engineering points out how most modern cars already have some form of automation within them—features like lane assist, auto-braking and cruise control. So theoretically, full automation options may one day become something those looking at car leasing will want to come as standard.
The Benefits for Short-Term Car Leasing
In addition to the general benefits of short-term leasing, autonomous vehicles could also bring these positives to the industry:
• Lower risks for drivers through reduced crashes and vehicle damage
• Cost savings on repairs, maintenance and insurance costs
• Subsequent lower pricing on short-term lease contracts
• Cleaner, more eco-friendly running, since the majority of autonomous cars are and will be electric
• Cost savings on fuel
• More efficient driving and reduced travel time for drivers
• Access to the latest in smart vehicle tech for customers
• Positive PR and brand awareness for leasing companies that will be able to provide these services
The Issues for Short-Term Car Leasing
However, while it would seem that the future introduction of autonomous vehicles would change the short-term car-leasing industry for the better, there are a number of manufacturing issues preventing this from happening. This article from The Conversation summarizes five key reasons from industry experts why self-driving cars still aren’t on our roads. These include:
• Concerns about the reliability of the technology
• Not enough testing in all weather conditions
• A lack of sufficient standards and regulations for autonomous systems
• A lack of trust in machine learning
• Not enough awareness and positive public perception of self-driving cars
On top of this, Paul Brown, the managing director of car-leasing firm Cars On Demand, has voiced other concerns about the safety, cost and legal implications that could arise through the use and leasing of autonomous vehicles. As he explains, “With the rapid development of hybrid and battery-electric vehicles, the push for autonomy has slowed recently, particularly as the costs involved are high and the technology would appear to still be some way off.”
Brown adds, “The complications of developing the technology to safely and reliably navigate the extremely complex and forever-changing situation that driving involves, along with developing fool-proof sensors and measurement systems, will likely hamper the widespread use of autonomous cars for many years to come. In addition, the legal implications for responsibility between the driver, car manufacturer and insurer still require a workable solution, along with the moral dilemma that will be faced by the software engineers as the technology develops.”
So, in short, we shouldn’t expect to see self-driving cars being used at all—let alone within short-term car leasing—until these problems are addressed.
Looking to the Future
Ultimately, then, we can only speculate on whether or not autonomous vehicles would have a beneficial impact on the short-term car-leasing industry—although there are plenty of indications that change will come and it will be for the better. The rollout may also end up being sooner than we think. Every day, more and more testing is being carried out, such as this example from automotive analysis body AB Dynamics, in the United Kingdom.
In addition, new petrol and diesel cars will be banned within the next decade, and many nations have zero-emissions targets to hit before the middle of the century. So it’s likely further development of electric cars and autonomous technology within vehicles will become a bigger priority for global manufacturers—which could, in turn, speed up their eventual rollout.
André Gwilliam is a content writer and digital outreach specialist. For more than six years, he has written about a variety of subjects that are close to the heart of the U.K. economy, including automotive, property, business logistics and market trends. Find him on LinkedIn.