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On-demand services are changing attitudes to car ownership - Automotive World

Why wait months for a new car when a mobility service will grant you access to one in just minutes? By Karim Kaddoura

Cities are changing at a pace never seen before, and in the last few years, the idea of car-free areas has been gaining traction. From London’s ULEZ and Ghent’s ‘Circulatieplan’ to Birmingham’s Clean Air Zone and Brussel’s Le Pietonnier, city planners around the world are embarking on large-scale, dynamic social experiments. These are just part of a line of action by political leaders across the UK and Europe to discourage the use of personal cars within cities in the move away from a 20th century, petroleum-based world. But what about when it comes to the individual, to the general public—what do their changing attitudes mean when it comes to private car ownership?

Consider younger generations—Millennials and Gen Z. Growing up in a world of next day delivery, streaming services and fast food, these generations are conditioned for immediacy, convenience, and on-demand services. They are true digital natives. From a very young age, they’ve been exposed to technology and the internet. Everything is available to them at the touch of a button, and that button is rarely more than an arm’s-length away on a mobile device.

Virtuo car rentalVirtuo offers a car-on-demand service

Technology has changed the way we do everything, the way we interact, eat, shop, and even sleep these days, and is also the driving force behind the expected change in car ownership attitudes. Netflix style binge watching, dinner at the front door in 20 minutes, being able to book a holiday without ever leaving the couch, these are all facilitating young peoples’ extreme need for immediacy and how they see the world.

Purchasing a car can take a long time, between making the actual purchasing decision, placing the order, and extortionate lead times. In fact, with a factory order car it’s common to have a lead time of up to three months, maybe even longer. And for higher end cars, for example any new BMW model, there’s typically a lead time of six to nine months. On the other hand, the use of a car is available within a matter of hours in today’s society. On-demand and app-based service allow customers to seamlessly book and unlock a range of cars with no queues, hassle, or paperwork, and provide quick, easy, and convenient transport methods to this Primed Generation. The question for many boils down to this: why wait close to a year for something that can be delivered to the doorstep in mere hours?

These generations are also now facing a cost-of-living crisis, the worst since the 1950s, and are thus having to become far more financially savvy. Inflation for July 2022 came in at 10.1% – a leap from 9.4% in June and borrowing on credit cards is growing at an annual rate of 12.5%. The cost of owning and running a car is substantial. For most young people (especially those paying big city rent) price is a major factor in any form of decision-making. On average UK car owners lose £1,200 (US$1,400) a year through depreciation, £500 on insurance, £280 on repairs and servicing, and £144 on road tax. Then there is the additional cost of financing. The average cost of purchasing a car in cash is £10,511 in the UK, whereas through financing is £15,438—a jump of nearly £5,000. For many older generations, car ownership symbolises freedom and opportunity, while younger generations value the affordability that comes with on-demand car rental services.

Netflix style binge watching, dinner at the front door in 20 minutes, being able to book a holiday without ever leaving the couch, these are all facilitating young peoples’ extreme need for immediacy and how they see the world

What’s more is Gen Z’s interest in issues pertaining to sustainability and climate change. According to a survey from the University of Bath (2019), 41% of young people aged 16-25 said they were hesitant to have children due to climate change, and 71% said their future is frightening. Younger people are now emerging as the sustainability generations, and private car ownership goes against this. According to government public health research in 2018, air pollution is the largest environmental risk factor linked to deaths in England, while research in the European Heart Journal found that poor air quality is likely to take three years off life expectancy.; this is higher than smoking tobacco.

Cars consume a lot of energy before they ever make it to the dealership. Automotive production leaves a giant footprint because materials like steel, rubber, glass, plastics, paints, and many more must be created before a new car is ready to hit the road. These are equally destructive at the end of a car’s life. Private cars lead to air and noise pollution, contribute to climate change, and occupy space that could otherwise be used for recreation and green spaces—all in all going against the strong tendency of Gen Z to support the fight against the climate crisis.

The changing attitudes of Gen Z and millennials have already begun to, and will continue to, impact private car ownership

Finally, consider the impact on social lives.  The most social places in society—parks, squares, pedestrianised areas—are all areas with no cars. To younger generations, spending weekends with friends, and evenings after work having drinks with colleagues, is an essential part of city living. Private car ownership takes this away to an extent, especially wasteful when you consider that the average car spends 96% of its life idle and depreciating. On top of this, 50% of public space is taken up by roads, eliminating so many of the places which could be used for socialisation. By simply reducing the number of cars on the road, it is possible to reduce the need for roads and parking, and thereby increase the areas in which young people can socialise within cities.

The changing attitudes of Gen Z and millennials have already begun to, and will continue to, impact private car ownership. The demand for immediacy, the extortionate pricing, the impact on the environment, and the effect on social lives all combine to make it so that the future of private car ownership is highly likely to continue its decline going forward.

About the author: Karim Kaddoura is Chief Executive of Virtuo’s CEO

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UK car distributor Inchcape's finance boss steps down - Reuters

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1 minute readNovember 28, 20227:54 AM UTCLast Updated ago

Nov 28 (Reuters) - British car distributor Inchcape (INCH.L) said on Monday finance chief Gijsbert de Zoeten was stepping down after a "lapse in judgement" that involved behaviour the company said fell short of standards expected of its executives.

Inchcape, which appointed insider Adrian Lewis as acting group chief financial officer while it looks for a permanent replacement, said Zoeten's departure was not related to the firm's financial performance or strategy.

The company said Zoeten resigned voluntarily after the incident where "he displayed personal behaviour falling short of the high standards expected of the leadership of the group."

Inchcape declined to elaborate on the circumstances. Zoeten did not immediately respond to a request for comment sent on the networking platform LinkedIn.

The Dutch businessman, who is in his mid-fifties, joined Inchcape in 2019. Before joining, he had previously worked for 27 years at consumer goods giant Unilever (ULVR.L).

Reporting by Pushkala Aripaka, Yadarisa Shabong and Aby Jose Koilparambil in Bengaluru

Our Standards: The Thomson Reuters Trust Principles.

Gallery
Retail & Consumercategory· November 25, 2022

As 32 teams compete for the World Cup in Qatar, Adidas and Nike also hope their shares can score.

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Big Discounts: Air ev G20 Cars Used at G20 - Bali Discovery

Wuling Motors – the Indonesian Company distributing the electric vehicles used during the just-completed G20 Summit in Bali, has begun selling these vehicles at discount prices.

As reported by Kompas.com, says Wuling Motor dealers in Jakarta and other cities in Indonesia have begun to sell their fleet of electric vehicles used during the G20 Summit in Bali. Dian Asmahai, Brand & Marketing Director for Wuling Motors, was non-committal when contacted by Kompas.com seeking confirmation of prices for the electric vehicles. Dian, however, did say that the Air ev G20 Edition will be sold at a special price and in limited numbers.

Some reports claim the Air ev G20 Edition vehicles once used in Bali for the Summit are being sold “as new” at the ticket price of a new car. Dealers are said to offer very deep discounts to customers wishing to purchase a Wuling Air ev G20 Edition. One dealer on the outskirts of Jakarta in Cengkareng was found to be offering Rp. 18 million discounts for models in the regular, long, and various available colors with 100 units on the block.

The ”slightly used” vehicles are guaranteed to be in top condition for their use for only a few days during the international Summit in Bali. The cars come with an 8-year guarantee on their batteries, five years more than the standard battery warranty of 3 years.

Another dealer in West Jakarta reportedly offers Rp. 10 million discounts for cars with only 200-300 kilometers on their odometer, with the new sticker prices still affixed to the window.  Purchasers are listed on the cars’ titles as the original owner.

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Barloworld’s Car-Rental Unit Sees Valuation of $260 Million on Listing - Yahoo Finance

(Bloomberg) -- Barloworld Ltd.’s car-rental business, which will be carved out and listed in Johannesburg next month, will have a valuation of about 4.5 billion rand ($260 million), the unit’s chief executive officer said.

Most Read from Bloomberg

Barloworld has hired Goldman Sachs Group Inc. to advise the diversified South African industrial group on the spinoff and listing of Zeda Ltd., set for Dec. 13, according to stock exchange filings Monday. The business houses the Avis and Budget rental brands, with Barloworld shareholders receiving one Zeda share for each Barloworld share they own.

Zeda CEO Ramasela Ganda, who gave the estimated valuation in a separate interview, said the company aimed to tap the growing needs of online retailers such as Naspers Ltd.’s Takealot. The potential arrival of players like Amazon.com Inc. would give this business further impetus, she said.

“People and companies don’t need to own their own cars or manage their own fleets anymore,” Ganda said in Johannesburg. “This is where we see the market shift and further growth, with companies like Amazon coming, and Takealot already here, they need fleets to transport and deliver their goods -- that is where we fit in.”

The spinoff is a rare boost for the Johannesburg Stock Exchange, which has been struggling to attract listings in recent years. Zeda would be one of two debuts before the year is out, with Brait SE, an investment group, planning an initial public offering of its consumer-goods division Premier Group.

Listing Zeda will boost management’s efforts to expand in areas including car rental and leasing, as well as commercial fleet rentals and other services such as maintenance contracts, said Ganda. The company manages an average fleet of some 57,000 vehicles, generating about 8 billion rand in annual revenue, she said.

Barloworld has said it will continue to focus on its main business of renting industrial equipment to mining and consumer-goods companies.

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.

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Jay Leno Arrives for First Comedy Gig Since Getting Burned and Grazes a Cop Car - TMZ

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BACKGRID

Jay Leno's miraculous return to comedy -- just 2 weeks after getting severely burned -- is officially a smash hit ... just ask the cops whose car he clipped!

It's the kinda Murphy's Law moment ya just have to laugh off, and Jay did, but Sunday night, as he pulled up to the Comedy & Magic Club in Hermosa Beach, CA ... he really did graze a cop car's tire with his Tesla.

jay leno

Backgrid

Jay arrived with his wife, Mavis, and everyone -- HBPD included -- got past the near-fender bender quickly, and the comedian immediately made it clear he's ready and willing to joke about the garage fire.

Check out the video ... Jay dropped 2 or 3 one-liners at his own expense on his way into the club.

TMZ broke the story ... Leno was working on one of his vintage cars in his garage when the fuel line burst on him, and about half of Jay's upper body -- including his face -- caught on fire.

After suffering 2nd and 3rd degree burns on his face, neck, arm and hands ... he went to the Grossman Burn Center, where he underwent skin grafts and got treatment in a hyperbaric chamber.

Just a few days after the accident, Jay told us he'd be back doing standup within a couple of weeks.

image 11/22/22

MEGA/Backgrid

Very few people thought was realistic, but Sunday night he proved all the doubters wrong.

BTW, Jay's been doing Sunday nights at this club for decades, and it quickly sold out when he announced he'd be returning. Appropriately, there was a ton of media outlets outside, waiting to see his astounding comeback.

Welcome back, Jay! We'd say, "Break a leg" ... but, let's not take any chances. �œ

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Free Review:

If you are looking to increase your insurance coverage on your vehicle, the insurance company may require you to obtain a certified auto appraisal.   If you have a custom car, truck or motorcycle, the insurance company won't pay you more than book value. Get a stated value appraisal to cover money spent customizing your vehicle.  Have a collector or exotic vehicle?  Book value does not justify the vehicle value  In case you are in an accident, have a certified auto appraisal done.  Contact us today for a Free Evaluation!

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Pinnacle Auto Appraisers Will Professionally Evaluate Your Vehicle!

FLEET VEHICLES:

Pinnacle Auto Appraisers prides itself on quickly handling large amounts of vehicles. We routinely handle fleets for: vans, trucking, limousine, shuttle, buses, SUV, corporate, taxi, dealership, clubs, rental, and delivery companies. We handle large national chains, small family businesses, and car club appraisal(s).

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Pinnacle Auto Appraisers Offers Quality Fleet Appraisals!

Accident:

If you were involved in an accident and the insurance company deemed your vehicle a total loss, we can help.  If you don't agree with the insurance company's offer, you have the right to hire an independent certified appraiser to determine the actual cash value of your vehicle.  Our certified appraiser will go to the vehicle location, conduct the inspection and complete a certified total loss appraisal on your vehicle.  Total loss claims do require a negotiation phase which we will take care of for you at no additional charge!

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CAR CLUBS & REPAIR SHOPS:

Our Appraisers are repair shop and car club fanatics! We enjoy when local and national clubs invite us out to their local gatherings. We offer an appraisal discount that lasted all month. We love everything that has an engine and drives on the road. We do our best to help everyone in need of an appraisal!

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Pinnacle Auto Appraisers - We Value Car Clubs and Repair Shops!