KBB: Ride Sharing Not an Imminent Threat to Dealerships
A new study from Kelley Blue Book concludes that the growing popularity of ride- and car-sharing services does not pose an imminent threat to dealerships.
IRVINE, Calif. — While the amount of people using car- and ride-sharing programs has grown in recent years, results of a new Kelley Blue Book study reveals these services are not an imminent threat to new-car buying and vehicle ownership.
The 2016 Kelley Blue Book Ride Sharing/Car Sharing Study commissioned by Kelley Blue Book and conducted by Vital Findings sought to understand the motivations behind ride-sharing and car-sharing usage. The study found that services like Uber, Lyft and ZipCar have had limited impact on current or future vehicle ownership.
These services, the study found, are mainly being used as substitutes for taxis and rental car companies.
“Ride- and car-sharing services are getting a lot of attention these days, and we wanted to better understand the current landscape of these app-fueled platforms and how they may impact both consumers and the auto industry moving forward,” said Karl Brauer, senior analyst for Kelley Blue Book. “While there are numerous benefits to ride sharing and car sharing, our data reveals that owning a car still reigns supreme, with reliability, safety and convenience all being major factors.”
The study found that the majority of respondents felt owning a car gave them a sense of freedom and independence, with 74% of consumers polled indicating they would be primarily driving themselves in the next six months.
Additionally, 24% of those surveyed said they would consider vehicle dealerships as a potential ride-sharing provider, while 16% said they would use a ride-sharing service offered by a vehicle manufacturer.
The study surveyed more than 1,900 U.S. residents between the ages of 18 and 64.
More Auto Finance
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →