Car quality and shorter distances delay replacements

The quality of machines has improved a lot in the last 10-15 years and is gradually extending the replacement time. In long-term rental last year, orders with a duration of more than 36 months accounted for 80%. This is a huge leap from two years ago, when the ratio was two out of every three. Not too many years ago the average duration was 36 months while now it is estimated to be around 44.

Apart from product quality, the cycle is also affected by annual mileage, which is decreasing, now averaging 28,000 km, so much so that 56% of the orders now include less than the standard 30,000 km/year. On the small business side, i.e. tax codes and VAT numbers, the discourse repeats itself but with some peculiarities. It is certainly true that they too are lengthening the replacement cycle, having perceived the better quality of cars that are more resistant to wear and tear.

Another important cause is that, like fleets, they have acquired the habit of preventive and not just repair maintenance, which helps to keep vehicles in good condition even after several years and kilometres. However, there is a difference and it is an important one: while fleets no longer run at three but at four to five years, the cycle of private individuals is rather around ten to twelve. So yes, the lengthening trend is the same, but between the two periods the distance is sidereal. So far, the strategy of charterers has been to convince customers that it is better to halve the period. That of private individuals, numbers in hand, has been to preserve their habits by choosing to be owners.