As a modern solution to buying or leasing a new car, car subscription plans have become massively popular with drivers, car dealerships and manufacturers alike. Capable of connecting customers to high-quality car manufacturers looking to offer convenient and affordable subscriptions, getting access to brand new car models has never been easier.
Are you interested in joining a car subscription service but aren’t sure if it is the best fit for your unique needs and requirements? In this guide, we break down whether car subscription is right for you and discuss the factors to look for when selecting the right subscription plan.
What is a car subscription plan?
Car subscription plans are an alternative to owning or leasing cars. Paid for by fixed monthly or weekly fees, the amount paid typically includes the fee for the vehicle chosen, driver insurance, breakdown coverage and additional tax. One of the only factors not included in the subscription fee is fuel or electric charging services.
Commonly managed through an app or website, keeping track of your car subscription can be a hassle-free experience.
As car subscription plans continue to gain popularity, more big-name automotive brands are opting to work with third-party software providers like Loopit. Whether you are looking for a functional utility vehicle or want to give electric cars a try, we work hard to help our subscribers get convenient and flexible access to cars that fit their specific needs.
Who are the ideal users of car subscription plans?
As car subscription plans increase all around the world, it is important to consider whether a vehicle subscription is going to be a fit for your needs and lifestyle. Car subscriptions are a great choice for:
- People who do not want to own or lease a vehicle.
- Young professionals on location for work without access to a vehicle.
- People looking for longer-term car rental options.
- Eco-minded drivers interested in test driving an electric car.
- Individuals looking to upgrade their car to newer models on a regular basis.
Important factors to consider when choosing a car subscription plan
Before subscribing to a car, there are a few important factors to consider to ensure that you will enjoy your experience. Some of these factors include:
- The brands and models of cars available — For some people, gaining access to specific car models is a driving factor for considering a vehicle subscription service. Partnering with many different car manufacturers and dealerships, third party car subscription software providers can help get drivers connected to the ideal utility, luxury or electric vehicles for their needs. Offering affordable monthly payments for even the top-of-line vehicles, car subscription plans are a great choice for anyone looking to rent a particular car manufacturer’s latest and greatest model.
- The recurring payment of the subscription — Similar to the subscription models for services like Netflix and Amazon Prime, subscribers of a car subscription membership agree to pay a set fee every month or week for access to the car of their choice. This fee does not include the cost of fuel or electric charging and is not used to work towards owning the vehicle. Before committing to a car subscription plan, it is essential to determine if you can afford the monthly payments, what the fee includes (insurance, breakdown coverage, etc.), and if there is a possibility for the fee to increase.
- Cancellation and termination of service options — Just like any subscription service, it is important to read up on their cancellation policies. Should you no longer want to use the service, you don’t want to be caught paying unnecessary cancellation fees without warning. These minimum terms may vary between subscription plans so we advise that you read the terms and conditions.
- Minimum terms and potential fees for vehicle swaps — One of the key benefits of car subscription is the freedom to swap vehicles on demand. However, many car subscription providers have minimum terms and fees depending on the subscription plan you on, should you want to swap your vehicle.
- Customer service experience — Since car subscription services are still new to the automotive market, chances are you'll have questions around the policies and terms. Looking for customer testimonials or reaching out to the car subscription service customer-support team prior to committing is a great way to get an idea of the services you will receive throughout the duration of your subscription.
- Ease of signing up— As with all car purchasing and renting, the process can be lengthy and confusing. From credit checks to ID verifications, a seamless digital experience goes a long way to giving you that reassurance in the car subscription service. Thanks to car subscription software, subscription providers are able to guarantee this and make subscribing to a car an effortless and enjoyable process.
- Robust payment system — Considering that you are going to be making recurring payments, a secure and safe payment system will be crucial. To ensure this, car subscription providers are now adopting car subscription software that incorporates world-class security and encryption with secure credit and direct debit payments that are PCI compliant.
At Loopit, we pride ourselves on providing purpose-driven car subscription solutions for both drivers and car subscription providers. Whether you are an automaker or car dealer, excellent customer service and care should remain as top priority for your objectives. With car subscription becoming more ubiquitous, it is imperative for your business to invest appropriately into your operational and marketing success.
Want to learn more about the ever-changing automotive industry? Check out our resourceful blog, where we regularly share our expert insights and opinions about the automotive industry and car subscription trends.