Guest Post: New opportunities in new mobility models

Aleksander Kaczmarek, VP of loyalty partnerships of CarTrawler, unpacks where the chances lie

Is car ownership still worth it? As economic pressures mount—including inflation, high interest rates, and new tariffs on imported vehicles and auto parts—car ownership is becoming more costly for American consumers. Combined with ongoing supply chain disruptions and an increase in new vehicle prices, these factors are creating conditions that could push more people to consider alternatives to traditional car ownership. Flexible mobility models such as rentals, subscriptions, and micro-mobility may become more attractive as the appeal of traditional car ownership wears thin and consumers look for cost-effective and flexible transportation options. For brands, particularly those with loyalty programs, making these alternative mobility options more attainable can build stronger relationships with consumers while addressing a real financial need.   

The rising cost of car ownership 

Transportation stands as the second-largest expense for Americans after housing, consuming 17% of an average household's budget. With new vehicle monthly payments exceeding $700 and nearly one-fifth of payments surpassing $1,000, cars have become a significant financial burden. Even used cars now command payments averaging $550 monthly. 

These rising costs are expected to increase further following the new broad-based tariffs that took effect in April. While the new tariff regime included carve-outs for the automotive industry, most economists predict the levies will increase prices on both new and used cars, vehicle repairs and even insurance. For households already struggling with broader cost of living increases, vehicles now represent another layer of substantial financial strain - and prompt more people to consider alternatives. 

Emerging mobility models and shift to usership-based models 

So, what’s the alternative when nearly half of Americans (45%) live in areas without reliable public transit, and ride-hailing services often cost more than ownership in the long run?  

Alternatives such as usership-based models—transportation solutions that provide access without the burden of ownership, are gaining traction. Car-sharing platforms, micro-mobility options, monthly car rental subscriptions, and traditional rental services are proving to be financially viable and flexible choices to purchasing vehicles. According to McKinsey research, 40% of consumers now utilise multiple mobility modes, and the shared mobility market is projected to grow by 20% annually through 2030. 

Companies driving this market growth include peer-to-peer car-sharing platforms like Turo and subscription services such as Sixt Plus. Even traditional car rental companies are seeing new usage patterns. In our 2024 report, Driving Loyalty: Market Insights on Car Rentals & Reward Programs, CarTrawler found that 24% of car rentals are now for everyday use rather than just travel occasions. 

Loyalty's role in car usership 

The shift toward access-based mobility options, including everyday car rentals, is creating opportunities for consumer-facing brands. Loyalty programs are recognising the strategic value of incorporating car rentals into their offerings. These services align naturally with consumer preferences for flexibility and convenience while allowing brands to diversify their value propositions through experiential rewards. 

Consumer interest supports this approach. Our Driving Loyalty research indicates that 45% of Americans are likely to rent cars through their loyalty program, with this figure rising to 56% among 25-39-year-olds. This represents approximately 27 million loyalty program members who are potential car rental customers. 

The integration of car rentals into loyalty programs creates mutual benefits. Members gain access to valuable transportation options as traditional ownership becomes more expensive, while brands enjoy higher engagement rates, member retention, and revenue growth. While travel-oriented loyalty programs have long included car rental options, as a part of their travel rewards, economic factors are now encouraging non-travel brands to add these services to their rewards portfolios. 

The future of mobility and loyalty 

As transportation habits change, loyalty programs have a significant opportunity to adapt by offering rewards that support usership rather than ownership. Forward-thinking brands can position themselves at the intersection of changing consumer needs and new mobility solutions. 

Brands that effectively incorporate car rentals into loyalty frameworks will create more connected transportation experiences for their members. Execution also matters; implementing advanced retailing techniques, including bundled offers and dynamic pricing, will create a more positive customer experience and generate greater customer lifetime value. Success in this changing landscape requires strategic vision and dedication to adapting alongside consumer behavior.  

From traditional rentals to shared mobility options, loyalty programs are well-positioned to accelerate the adoption of these new models by making them more rewarding and accessible for daily use. The most successful loyalty programs will be those that recognise and respond to the fundamental shift in how consumers think about transportation—moving from the paradigm of ownership to one of access and flexibility.