Ride-sharing hasn't chipped into car sales – yet

The emergence of car-sharing and ride-sharing services in recent years caused a few fits of indigestion for auto industry executives. After all, if these services proved to be cost-effective and convenient, would people stop buying cars?

They needn’t have worried. As a new study from Kelley Blue Book points out, these services are beloved by many who use them, which isn’t many. According to the 2016 Kelley Blue Book Ride Sharing/Car Sharing Study, these services have gained traction but remain a niche phenomenon and no threat to auto sales.

Highlights of the study show:

Awareness Doesn't Mean Use

Nearly three-quarters of respondents (73 percent) were aware of ride sharing but only 16 percent have actually used these services, with Millennials and city dwellers leading usage. As for car sharing, 43 percent of respondents are aware but only 7 percent use these services.

Still Planning to Buy or Lease

Vehicle-sharing services are viewed as substitutes for taxis (41 percent) and rental cars (39 percent). About 76 percent of vehicle-sharing users say they intend to purchase or lease their own vehicle within the next two years.

Ownership Has Its Benefits

According to respondents, vehicle ownership is more reliable, with 81 percent favoring ownership over ride sharing. Also, 80 percent of respondents feel safer in cars they own and 74 percent owning your own car is more convenient than car-sharing.

Budget Is Primary Ownership Factor

Among those surveyed who did not currently own or lease a vehicle, more than half of respondents, about 57 percent, cite affordability as the main deterrent for not purchasing or leasing their own vehicles. None of this means that the services won’t one day become more widely used.

If owning a vehicle is in your future, visit Travis Credit Union’s Vehicle Loans at www.traviscu.org to get started. If you’re ready to apply for an auto loan, visit a branch or call us at (800) 877-8328!

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