Importance of Technology and Telematics for the Renting Sector in 2019

August 7, 2019

The renting sector has gained strength in recent years. This is a global trend that we also see in Latin America. According to the latest reports, of the more than 5 million registrations in the region, 258,000 correspond to renting. Brazil, Mexico and Colombia the countries with more vehicles of this type.

In many countries the renting sector is growing more and more. Every year they add up to a higher percentage in total registrations, and this is a trend of exponential growth.

Renting is becoming the main alternative for use of vehicle of individuals and even in companies. This can be evidenced by the increasing number of people who have chosen this model of use of vehicles as opposed to the traditional purchase.

With this service, the individual or company does not pay entry fee but only a fixed monthly fee that includes all the expenses related to the vehicle; both in maintenance issues and taxes and fees. It also has the advantage that one can change vehicles every few months, giving access to safety and efficiency updates.

The challenge is modernizing the vehicles

In this sector, technology will play a fundamental role in improving the safety and efficiency of driving vehicles. That is why the challenge for the renting business is to be able to modernize and offer quality services to its customers.

The main renting and fleet management companies must rely on innovation and connectivity of the entire fleet of vehicles through telematics.

Thanks to technology such as telematic systems, big data and connected car, leasing companies will be able to offer a quality service from the point of view of fleet management of a company’s vehicles. In addition, digital platforms will be able to streamline the necessary procedures and derivatives of the use of the car, which will make it even more attractive for users to opt for this type of service compared to the traditional purchase of vehicles.

That is why in this market having connected car technology, such as that offered by Location World  with its CarSync product, will be a great competitive advantage over other more traditional renting companies that do not rely on this technology for their vehicles.

Each time the service is valued more than owning as well as the payment per use. Undoubtedly, in the coming years, renting, together with the new connected car technology, will be a growing trend in Latin America.

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