How a new car leasing agreement can disrupt the sharing economy

The UK Government has just announced a ban on new fossil fuel vehicles by 2030, drastically accelerating the shift toward electric cars.

With plenty already on the market, drivers are faced with a growing paradox of choice. The second you’ve invested in the newest model, along come 5 other cars with better efficiency and better features and suddenly you feel behind the curve, already looking ahead to your next potential purchase.

But what if you could drive them all? What if you could have all the benefits of owning a car without having to go through the hassle of ultimately selling it or dealing with depreciation when you’re ready for a change? 

And what if that car could help you earn money?

Our community car sharing platform Karshare has partnered with a global car leasing firm to enable consumers to take a PCH (Personal Contract Hire) agreement that permits hiring to vetted drivers in their communities for the very first time in the UK. What this means is that people can now take advantage of all the benefits that come with leasing a car - lower payments, smaller deposits and the ability to swap for a new car at the end of each term - and rent out that car whenever it’s not in use to earn extra income.

In a survey of 1,000 households with brand new cars on car finance agreements, Karshare discovered that 4 out of 10 are losing sleep worrying about how to meet their fixed monthly outgoings while over half have shared that their car finance agreement payments are one of their biggest financial concerns. With Covid putting a significant financial strain on UK households, 83% are also actively looking for ways to boost their income - and sharing assets is a way to do this. 

The initiative by Karshare is called Lease and Share and will unlock earning potential for millions of people. It plays into the growing trend of dematerialisation and puts experience over ownership. Most importantly, however, it will help Karshare in its mission towards achieving a sustainable and shared future. 

Cars remain unused 95% of the time and Karshare utilises this fleet of already-existing vehicles instead of papering our streets with more and more cars. Car owners can make their cars available on the Karshare app whenever their car is sitting idle and watch the money trickle into their account, without having to move a finger. Owners can sign up their vehicles to be rented out here. The innovative KarshareGo technology also makes it possible for vetted renters to access any car without a fussy key handover while our comprehensive insurance plan ensures that any mishaps are fully covered under Karshare’s policy.

The key to a sustainable future is sharing. Karshare is here to help.