With the advent of technology, the nature of every business is changing. Today many industrial market virtues are having a mobile app for flourishing their businesses. All the small and medium-sized businesses are looking forward to having a mobile app and one such venture name that is being highlighted nowadays with the mobile app is Car Lease Businesses.
If you’re interested in getting a new car, you’re probably well aware that you have two basic options: leasing or buying. While most drivers choose to buy (or finance) a new car, many shoppers swear that leasing a car is the better decision. So which is correct?
In this blog, we will cover every aspect of a car lease app development from market size to app features and the cost of car lease app.
How Car Leasing is Popular
Car leasing has become increasingly popular over the last few decades. As a result, it has brought benefits to more businesses and customers.
Why is car leasing so popular for businesses?
Leasing is an attractive prospect for businesses, and there are many reasons for this, some of them are,
The fixed cost helps in avoiding depreciation.
- Significant tax benefits.
- Regular car upgrades.
- Saves a great deal of money.
- Value-added benefits for employees.
Why is Car Leasing so popular among Customers?
Car leasing has been a predominant choice for businesses in the past, it has become a very viable option for customers as well. There are several reasons for this, including;
- Way lower monthly payments.
- Lesser money investment upfront.
- Don’t have to worry about the used car.
- Get to drive the latest cars.
- Impressive tax benefits.
Car Leasing Market Size Stats and Business Opportunity
Leasing is a popular and fast-growing way to finance a new car. As of 2016 (most recent data), approximately 31% of all new car sales in the United States were leased. This translates into the fact that over 4 million cars leased in 2016 alone! Leasing has grown quickly in popularity, moving from nearly 15% of the market share in 2006 to 31% of the new car market in 2016.
Talking about the business opportunity, it is expected that the global car leasing market will witness a compound annual growth rate of 14% during the period of 2019-2023. Asia Pacific, Europe, North and South America are the eminent regions that form the global car leasing market. It is expected that APAC will have the biggest share of the market by the end of 2023. With more mobility demands and high fleet management solutions, car leasing companies all over the world have increased the demand for leasing.
How A Car Leasing Mobile App Helps
The automotive industry offers a wide range of car-selling and related apps designed to meet customer needs. With the help of mobile apps, potential clients are able to compare prices, check out reviews, simplify the whole car, leasing process and obviously save plenty of time. By simplifying the leasing process, the app provides a platform that gives customers easier access to personalized lease deals from local dealerships and can bring dealerships new business they might not have gotten otherwise.
Type of Car leasing Mobile App Business
The aggregator app is one of the widely used models that bring in all the dealers and car lenders together within a single platform. Here the customers can find the dealers nearest to their location offering the best deals on the car lease. Such applications do not have their own inventory. They only provide a platform facilitating car leasing service between the dealers and customers. As far as the monetization is concerned, the potential ways are a commission, advertising, 3rd party brand promotions, and featured listing, etc.
The application is developed for a specific business house or the manufacturer to facilitate its operations. The point of contact here is the customer and the executives of the store location or the employees of the company. Here the entire operational activities like lease management, contract management, and financial management are handled by the various modules incorporated in the application itself.
Social Signup & Login:
This feature allows the users to sign-up to the app. It uses social accounts such as Facebook, Twitter, Google ID, phone number, etc. as the primary source for logging in. This medium helps in completing the registration process in a hassle freeway.
Under this feature, the users get reminders and updates regarding the appointments, payments and any new car added as per their interest. Also, they get the details related to the available offers in their respective cities for a car lease. The technology keeps the users connected to the application and notifies them about all the updates. It works great in augmenting the user’s engagement standards.
In-App Camera and Document Scanner:
The In-App document scanner allows customers to capture the image of their documents to be uploaded for completing the leasing process of the car. Moreover, with the In-App camera, the dealers can click the image of the car being delivered to check its condition at the end of the lease contract.
With this feature, the documents that are scanned or shared by the various customers can be managed properly. With the integration of ERP in Data management helps in the smooth processing of the business operations.
Under this feature, the customer can get a rough estimation of the monthly EMI. The customer may fill in the car details, the amount that he/she wants to pay as the down payment, loan tenure and can get an estimation of the monthly EMI.
CRM & ERP Integration:
Adding the CRM helps in strengthening customer relationships with the application all the way stronger. It allows the users to seek any assistance for the problems they face while using the app. The CRM integration helps in generating the response for the queries and keeps the users feel attended. Also, users can share their improvement feedbacks or the shortcomings related to the application which helps in enhancing the customer experience and adds perks to the business.
Today ERP systems are critical for managing thousands of businesses of all sizes and in all industries. With the ERP integration in the application every module such as the Financial Management and Lead Management System enhances the business processing and helps in generating good revenue.
A content management system is an intuitive and conventional tool for admins. It helps admins to manage available content all over the application.
This can help the users in making certain calculations if required in the application itself.
With this feature, the admin can check the lease ending dates and can push the notifications or reminders to the customers. Also, the customers can check the availability of the desired vehicle and can schedule it for the delivery on lease.
Rewards and referral programs motivate the customers to share and use the application more and more in order to earn more reward points which can be converted into attractive discount offers. It is a really beneficial feature of the Car Leasing App to boost the approach among potential customers.
GPS Tracking System:
This is the most essential feature that helps the admin to track the vehicle’s current location. The geolocation feature captures the geographic location of the user and as per that the app displays the information. For instance, if the user is driving the car in a rash manner than the admin can send alerts and alarm the user to slow down in order to avoid any surcharges. Also, the users can locate the nearest dealer as per their location.
Analytics & Dashboards:
App analytics offers various types of essential data that can be used to enhance the business and app operation to the admins. Also, the incoming and outgoing funds can be tracked and managed under this feature of the car leasing app development. One of the crucial features for an admin is a dedicated dashboard. This feature shows all analytics and data to the admin separated by the categories.
This feature helps the admin in keeping track of all lease contracts. With these live statistics the business flow can be managed in the most efficient way also other monetization strategies can also be implemented.
With this feature, the admin can manage the car fleets remotely via the app itself.
A thorough inspection is performed before the delivery of any car. Here are some predefined checkpoints under which the car is completely checked by the certified engineers and a report is generated which can be seen under this feature. This helps in building the trust factor with the dealerships or stores.
Under this, the brand or application presence is capitalized in many ways. The marketing campaigns can be run on various platforms and their performance can be analyzed so to make a better monetization strategy. All the advertisements, banners, email templates, and promotional campaigns are managed by the admin.
This feature is really helpful in knowing the insurance renewal time period of the various cars that are under the inventory. The details regarding the claim and new insurance can be obtained by this feature.
With the help of geographic tracking, the driving behavior of the users can be monitored. Also by this feature, the notifications and alarms regarding the speed limit and driving pattern can be sent to the customers so as to help them in saving from the surcharges implied by the traffic police.
Regular maintenance of the cars is necessary so as to maintain its durability. Frequent reminders are provided to the customers to send the cars at the authorized service centers for its service.
If any customer wants to cancel the lease before its end date than certain calculations regarding the pending amount needs to be done and the car pickup is scheduled accordingly.
Customer Profile Verification:
This is the most important feature where a customer profile and its background are checked thoroughly so as to confirm the authenticity of the documents that are provided.
Roadside Assistance is a 24×7 emergency service that is offered in case of a breakdown of a vehicle. RSA intends to reduce the inconvenience caused by any failure of a car. Roadside assistance covers different services like on-site assistance, Flat Tire, Towing, Dead Battery, Key lost or locked, Fuel delivery up to 5 litres, Cab assistance & more.
Required Technology Stack
It wouldn’t be an exaggeration to say that behind every successful mobile app there are competent and experienced mobile app developers who turn ideas into a profitable business. While developing a car lease application just require to partner with a successful team or company of mobile app developers. To make the app available to a wider audience, it is wise to make the car lease app available on all mobile platforms like Android and iOS.
- Platform – Android, iOS, Web
- Real-time Analytics: Storm, Flink
- Database: Postgress, HBase, MongoDB, Cassandra
- Payments: e-Wallets, Stripe, PayPal, Braintree, Net Banking
- Voice, SMS, & Phone Verification: Twilio, Nexmo
- Push Notifications: Push.io, Twilio
- Cloud Environment: Azure, Google, AWS
- Navigation: Google Map
Car Leasing App Development Team Structure
For car lease app development, the minimum team structure would look something like this
- Business Analysis Team
- Project Manager
- Android and iOS Developers
- Front-End Developers (UI/UX Developers, AngularJS Developers)
- Backend Developers (PHP Developers, .Net Developers, NodeJs Developer)
- QA Professionals
How Much it will Cost to Develop a Car Leasing Mobile App
The cost of developing a car leasing mobile app depends on the below factors:
Find out some of the listed factors below:
- The platform selected
- Geography of development partner
- Front and back-end development
- UI/UX development
- Development team Size
- Brand value of development partner
- 3rd Party App Integration
- Customization & Functionalities
Keeping beside the aforementioned technical parameters, the physical location of the mobile app development company and the app developers also plays a major role in estimating the right price of the mobile app. And the most important factor that affects the overall cost is the geographical location of the development. For instance, Asian countries like India offer a great quality of mobile app development at way lower prices than that of western countries.
Considering all ideal factors and best options, an MVP version of a car leasing mobile app can cost somewhere around USD $15,000 to $20,000.
Rahul Mathur is the founder and managing director of ARKA Softwares, a company renowned for its outstanding mobile app development and web development solutions as well as specialized in Android and iOS app development. Delivering high-end modern solutions to all over the globe, Rahul takes pleasure in sharing his experiences and views on latest technological trends.