Wheels Guru

Training, Travels, Racing – Motorcycles and Cars

Guest Post: Link between Auto Lending and the Future of Mobility

motorcycle 1149389 960 720

You will notice that there has been a significant transformation in the business processes and policies as well as the behaviour of the consumers in every sector. Consumers are now more knowledgeable about the products as well as the services that they want to buy. Whether it is a physical product or a financial product such as a car loan, they will not take anything lying down or for granted.

It is all due to the extensive development and use of the internet and information and technology industry. They can now find out information about anything and everything by surfing different website on the internet such as:

  • The details of the product
  • The history and reputation of the company selling that specific product and even 
  • The reviews and testimonials of the previous clients.

They can even visit several other neutral third party review sites such as Better Business Bureau and Angie’s List to compare different products and companies selling physical or financial products such as Liberty Lending.

All these have helped them to take a more educated and informed decision to make the right choice of the goods or loan product in the end.

The auto lending market is also no stranger to such changes and consumer behaviour and therefore has to make the necessary amendments in their business policy to cater to the ever-changing demands of the consumers in this ever-changing business landscape.

The future of mobility

In order to make the changes and cater to the demands of the consumers, the auto lending companies need to consider several factors. The most significant factor of all seems to be the future of the mobility factor. This typically has four different stages that you will need to understand in order to determine the link between it with the future of today’s auto lending market. However, to start with you will need to understand what future of mobility actually implies. 

  • The future of mobility largely depends on the way the goods and people react to the changes bot immediately as well as in the long run. 
  • It all depends entirely on the nature of the fundamental transformation as to how the auto lending market will respond to these changes. 

In addition to that, there are also different elements that determine the future of mobility. A few of these elements are:

  • The advances made in materials and powertrains
  • The significant shift in consumer preferences
  • The increase in in-vehicle connectivity and 
  • The advent and adoption of self-driving vehicles.

All these elements will set up the perfect platform for the rise of an entirely new mobility ecosystem. The delineations of this new ecosystem will, however, will be more likely to be dependent on two vital factors such as:

  • The degree of mobility that is shared or is personally owned and 
  • The fact of whether the vehicles will be fully autonomous or remain in human control.

This is all about the future of mobility that is going to stay and affect the auto lending market in the future.

Different stages of future mobility

The combination of all of the factors mentioned above will yield four prospective future states of mobility.

Future state 1: 

This is the stage where there is an incremental change noticed. In this stage, the vehicles typically are personally owned and driver driven. It is the norm of this stage to have private ownership and it remains with the consumers. Typically, these consumers opt for:

  • Privacy
  • Security
  • Flexibility and 
  • Convenience.

All these come automatically with the ownership of the vehicles. In this stage, it is widely and most importantly assumed that the vision while incorporating the driver-assisted technologies that the fully autonomous drive will not be available anytime soon.

Future state 2: 

This is the world of car sharing that is anticipated to grow continuously. This shared access to vehicles includes:

  • Taxis
  • Rental cars
  • Limousines
  • Ride and car-sharing.

In this stage, there is increased competition and an increase in the economic scale. This drives the expansion of such shared vehicle services. This will be then available in new geographical territories and usually offered to more specific customer segments. 

In addition to that, this specific system will offer the consumers with different options for non-drivers as well such as:

  • The seniors
  • The minors not having licenses and 
  • Low-income families.

In this stage of future mobility, the passengers will choose a service and value it relying heavily on the convenience aspect of the ‘point to point’ transportation. This is the unique aspect of ride-sharing and car-sharing. 

The future state 3:

This is the stage where the auto industry will reach a state of driverless revolution. In this stage autonomous drive technology will prove to be:

  • Viable
  • Convenient
  • Safe and
  • Economical.

However, autonomous technology will not eliminate the private ownership aspect completely. It will continue to prevail but people at this stage will seek such driverless functionality simply for the sake of safety as well as other potential benefits. 

The basic reasons that they will like to continue to own cars will be much similar to the reasons that they had before the beginning of the autonomous drive. They may like to invest in even more expensive cars in the future when a new era of customized car dawns. To the consumers, it will feel to be appealing to drive tailored vehicles for specific circumstances and occasions.

Future state 4:

This is the new era of accessible autonomy that involves the convergence of both vehicle sharing and autonomous trends. In this future mobility, the management companies will offer a wide and diverse range of passenger experiences in order to meet the wide and varied needs of the customers. This will be offered at different price points. 

The most ardent and earliest adopters of this form of mobility will be the urban commuters. However, with the expansion of driver usage and smart infrastructure, it may even spread to heavily inhabited suburbs and beyond.

These different stages will affect auto lending market and volume differently being linked together warranting a change in the auto lending landscape.