Part 5/9:
Willingness to Pay
The core determinant seems to be the willingness of buyers to pay. For private car buyers, affordability is influenced by the high prices themselves, sometimes leading to older or lower-spec models. For fleet operators, the decision hinges on whether the potential rental income justifies the investment, considering fuel costs and operational expenses.
Elevated rental prices, driven by high private hire demand, also contribute to maintaining strong consumer willingness to pay. As a result, rental yields remain attractive, encouraging continued investment despite the soaring COE premiums.