Illustrating Wear-Based Dynamic Leasing for Sustainable Mobility

Traditional business models like automotive leasing often fail to incentivize sustainable resource consumption. To address this, we are exploring the Fair-Wear Pricing Model (FWPM), a data-driven approach that dynamically adjusts leasing rates based on a vehicle’s actual wear and tear.

This work demonstrates the model’s core logic, using a synthetic dataset on tyre wear to illustrate how contextual IoT data can be translated into a dynamic pricing factor. The goal is to highlight a plausible technical pathway for operationalizing the FWPM, creating a more transparent and behavior-sensitive leasing model that aligns financial incentives with sustainability.

Working Paper.