Times used to be different pre-pandemic. They got different during a pandemic. Times are different post-pandemic. People have moved from buying luxurious things to getting things on rent. This was supposed to happen since people lost their jobs, the salaries boiled down, and the prices went up. Since people, businesses, and governments, all of them are in recovery mode. One of the most affected still remains the sector of society, the people.
One perspective is that people have lost their jobs but the prices have not gone up but a little. The other perspective is some have lost their jobs while others kept on working at a boiled down or maintained level of salary. Either way, the end result is a decreased overall capacity to buy.
This is why one of the most fascinating changes in general behavior is being witnessed by the Automobile industry. People are moving towards user-ship rather than preferring to buy something. Getting a car for rent on a monthly basis and getting a car on lease is the new way to get to a car.
Such a jaw-dropping change is one of the answers to the question of the Car Rental Industry’s survival which was being asked.
That being said, the rest of this post explains why such a shift in the general behavior has been caused. What the Automobile Industry is doing about it and how the shift in the situation is favorable to the rental car industry.
The automobile and rental car industry post-pandemic
It is not only about cars, but the prices of overall commodities. As for the automobile industry, this year marks the first year in which the car prices are kept comparatively low. This is simply to encourage buyers in their recovery phase post-pandemic. But the situation is not that simple. It is not about keeping the prices low as if inflation in other areas doesn't exist. Since almost all businesses are in the recovery phase, they have not kept the prices low.
The commodities are kept expensive (to maximize the profit and recover the production) or kept the same as before. Even if the prices are kept the same as before, it is not going to make any difference as the overall buying capacity has decreased. Since unemployment, decreased salaries, and an immense increase in the candidate competition, looking for new things to buy for the people has become harder.
Now, the blame does not go shine on the automobile industry as they are in the recovery phase as well. The best that they could do to minimize their profit, encourage new buyers, and avoid going into loss was maintaining the prices as previous models. Whereas new models are supposed to be more expansive. Now the general behavior is people moving towards renting things that they could have bought pre-pandemic.
According to Michel Ayat "This is the sign of times... and the automobile industry will just have to accept it" - C.E.O. of Arabian Automobile company in Dubai. This is just a situation where people are moving towards user-ship rather than looking for buying them. One of the sectors that tend to be particularly true in this context is getting a car on rent.
There was a question that was being raised on the survival of the rental car industry. The general behavior of people that are moving towards user-ship is one of the answers to the question of the industry's survival. However, it seemed unusual that how things would turn out this way. As for now, the situation is in favor of the rental car industry. Understandably so, people are going through a decreased overall buying capacity.
Whether if the prices are kept as before, the unemployment has caused major damage to the overall capacity to buy as well. The only way now businesses can succeed is by empathy and there seems to be no way around this fact. Businesses can manipulate the prices all they want and keep things to AED n.99. Tricks and tactics like these are useful when people have average if not strong buying capacity.
Conclusion
Pandemic has created a situation where people are operating on a low budget. Even the ones with a salary more than average are trying to find pocket-friendly ways to operate. Such is a condition post-pandemic because of the overall decreased capacity to buy.
Businesses now are trying to find ways to keep their survival going. Such is the case with the Automobile industry as well. This year marks the first year where the prices of newer models are kept to a minimum, whereas the case seems to be contrary to the present situation usually.
This is all because of decreased overall capacity to buy. This is why the general behavior is suggestive of and is preferring user-ship over buying something. According to Michel Ayat "This is the sign of times... and the Automobile industry will just have to accept it".
As far as renting a car is concerned, there is a rule of thumb to remember. The longer you rent, the lesser you pay. This is why monthly car rentals tend to be cheaper than weekly ones. If you are looking to get a monthly car rental, here is one among many places to get your today. Enjoy pre-scheduling and choosing the time, day, and location of your preference. Enjoy the freedom of hiring a car on rent through Whatsapp. These are some of the several ways that you can opt to interact with Finalrentals.
