Glass’s: Autonomous vehicles to revolutionise ownership models

The arrival of autonomous vehicles has the potential to completely change car ownership models, vehicle data provider Glass's has said.

Glass’s: Autonomous vehicles to revolutionise ownership models

According to Rupert Pontin, head of valuations at Glass’s, younger generations have already moved from a pure ownership model of vehicle towards leasing them, and autonomous technology is likely to shift the model even further away from pure ownership.

He said: “Autonomous cars are very likely to accelerate the evolution of this trend. The user of the vehicle could opt for a pay monthly model similar to a modern lease deal or they could be part of a buying consortium that pays to have access to one or a pool of vehicles.

“At its most extreme, we may even see a ‘pay on use’ model of ownership become widespread, where the motorist pays for only the time or mileage that they consume.”

This will have other potential knock on effects, he said, including faster replacement cycles as the manufacturer would have more control over the use and ownership of the vehicle. 

Pontin said there was a strong possibility that fully autonomous vehicles are much closer to reality than many people expect, but that the adoption of the technology would be gradual.

He said: “There is a strong possibility that the use of autonomous vehicles on UK roads is much closer than many people believe – one fact that sticks in my mind is that Google’s director of vehicles is adamant that his 11 year old son will never need to get a driving licence.

“However, they will not take over the roads or even become a majority presence overnight. The process – if it occurs – will take decades and there are likely to be a number of motorists who will always wish to retain control over their own car.”

Motor Finance investigated the topic of autonomous cars in the March 125 edition and came to similar conclusions.