Private leasing is growing, as consumer mindsets shift from
ownership to subscription. The growth of subscription offerings
(e.g. Netflix, Spotify, WeWork, Go Car) and companies such as
Google and Amazon has resulted in consumers being more informed in
their purchasing, having researched online, and more open to
subscription offerings than ever before. This presents a growth
opportunity for the asset financing industry in the form of
Personal Contract Hire (PCH) products, a long-term vehicle rental
agreement targeted at a private individual who does not wish to own
cars at the end of an agreed term.
Trends in the Market
Following in the footsteps of other industries such as music and
media, the automotive industry is seeing a shift towards a service
based model where customers are increasingly inclined to pay a
subscription fee for a service as opposed to purchasing a good or
asset in the form of Personal Leasing or Person Contract Hire.
Personal Leasing or PCH is
