“Whereas owning a car used to be taken for granted by many, today we see an increasing number of people choosing to rent instead – either long-term or as needed via short-term rental options. The same trend can be observed in other sectors where consumers aim to avoid large upfront costs and maintain financial flexibility,” said Andrus Valma.
Piret Paulus also confirmed that Estonians’ interest in flexible payment solutions and rental services is on the rise, with a third of Estonians considering rental options important. Inbank has offered smartphone rental services since the fall of 2023, and has since expanded its rental portfolio to include laptops, smartwatches, and tablets.
“In the case of phones, we see that consumers have embraced the rental model – two-thirds of Inbank’s rental portfolio is made up of smartphones. However, considering the environmental impact, the potential of rental services in the future is even greater,” Paulus noted.
According to Valma, the concept of full-service leasing didn't initially gain widespread traction in Estonia, but market attitudes have changed significantly in recent years. Since the beginning of 2020, Mobire's vehicle fleet has grown from 1,700 to 5,000 cars.
A Shift in Consumer Mindset
A decade ago, owning a car was a status symbol for many, but today consumer mindsets are evolving. While the majority of new vehicles in Europe are still purchased outright, a Deloitte report forecasts that by 2030, rental services will account for 21% of new personal vehicle registrations.
Mobire, one of Estonia’s leading full-service rental providers, sees a clear trend: people increasingly prefer flexible and cost-effective solutions that require no large initial investment and avoid unexpected expenses. With the introduction of the car tax, new car purchases have decreased, but full-service leasing numbers remain steady.
“Where car ownership once meant security and prestige, today consumers are more likely to ask whether it’s reasonable to tie up a significant sum in an asset that quickly loses value. Instead, the car is seen more as a monthly managed service – much like a phone or streaming subscription,” explained Mobire CEO Andrus Valma.
The Younger Generation Is Moving Away from Ownership
Valma sees this shift in the automotive sector as part of a broader societal trend, where consumers favor services over ownership to maintain flexibility and make more financially rational choices. This change is especially noticeable among the younger generation, who are less attached to the idea of owning a car compared to older generations – they use vehicles more purposefully and for planned trips, rather than daily commuting.
A similar mindset applies to electronics, according to Paulus. “Young people have developed a habit of replacing their smartphones roughly every two years, as the latest models offer access to the newest software solutions. However, replacing a phone every couple of years is quite costly, while renting is nearly a third cheaper – making it a convenient and more affordable way to always use the latest device,” she pointed out.
Rental Services Help Reduce CO₂ Footprint
The trend of renting small electronic devices is supported by an EU regulation aimed at manufacturers, which encourages extending the life of electronics instead of turning them into waste after their first use. “Unlike old cars, which typically don’t just sit idle, small electronics often end up forgotten in drawers – in fact, 54% of Estonians left their previous smartphone at home unused,” noted Paulus.
She emphasized that rental services ensure that devices get a second life and don’t become waste after just one user – helping both consumers and retailers. Everyone who reuses devices, whether independently or through rental services, helps reduce the CO₂ footprint.
