How future vehicle ownership will change

Vehicle sharing is a widely expected phenomenon of the near future, said Jakkie Olivier, CEO of the Retail Motor Industry Organisation (RMI).

He explained that most people who share vehicles through Uber or Taxify in reality only do so for temporary convenience – and still own a vehicle.

“The major instance where Uber is widely used – and replaces vehicle ownership – is in dense urban areas, where vehicle ownership has in any case always been rare. Nonetheless, vehicle sharing is an evolving trend that poses challenges for market players such as big dealers and automotive manufacturers.”

Jakkie added, “Shared mobility is an attractive notion as a solution to rapid urbanisation – and it has found its ideal not in shared vehicle but in mass public transportation systems. There are challenges with vehicle sharing – such as financing it, insuring it and servicing it – the costs of which ensure that as soon as one gets to over 3 220km travelled a year, it makes financial sense to own your own vehicle.

“Ownership issues aside, we stand at the brink of the age of autonomous vehicles (AVs) and most attention has been riveted on the societal and behavioural changes they will bring about, rather than the more mundane aspects of who will own and care for the millions of AVs that will presumably be idling, awaiting summons via a smartphone app.”

Techopedia [https://www.techopedia.com/definition/30056/autonomous-car] described an autonomous vehicle as, “… a vehicle that can guide itself without human conduction. This kind of vehicle has become a concrete reality and may pave the way for future systems where computers take over the art of driving. An autonomous car is also known as a driverless car, robot car, self-driving car or autonomous vehicle”.

Jakkie added an AV will essentially be a large computer, a valuable asset that will be owned by somebody.

“Most likely, vehicle ownership will lie with fleet operators rather than individuals. You’ll call for an AV via a smartphone app – it will arrive at your location, you’ll get in and enter your destination, and you’ll head for the freeway, and pay digitally via the same app. Riders never have to think about maintenance, never have to worry about refuelling, finding parking, cleaning, or buying car insurance or monthly car repayments,” said Jakkie.

However, some company somewhere will have the responsibility for all those bills – and vehicle ownership. Some issues, such as regular servicing, are being built into the design of the computerised vehicle, which may not only diagnose its own maintenance needs, but schedule its own appointment and then arrive by itself at the workshop.

Issues of financing and insurance are also being looked at in the packaging and marketing of AVs.

“Vehicle sharing will undoubtedly affect vehicle sales in the medium to long-term. Even if many people will continue to own a vehicle while at the same time use Uber, on a family basis it may alter the decision of whether or not to own a second vehicle, for example, or rather consider a shared vehicle ownership model or even just ‘leasing’ a vehicle as and when needed, as an option for the second vehicle.

“No matter who owns the vehicle it needs to be properly maintained as road safety has to be a priority. We continue to recommend that vehicle owners use RMI members for proper maintenance, service and ultimately peace of mind,” concluded Jakkie.