The car subscription market is still relatively new — but it’s expanding rapidly, both in Australia and right across the globe. For people who don't want to be stuck driving the same car for years, it's a great option that offers more flexibility than leasing and more control than renting. If you are considering offering a subscription vehicle service to your customers and would like to learn more about how this new ownership model works, you’ll find all the information you need in this guide.
Let’s start with a basic description of what a vehicle subscription service actually is. In simple terms, it’s exactly what it sounds like: customers pay a recurring subscription fee and, in return, they get to drive the vehicle of their choice. The exact benefits may differ from one service provider to the next but generally speaking, the only thing a subscription fee won’t cover is fuel. Everything else — maintenance, repairs, regular servicing, insurance — should be included in the subscription package and therefore covered by the monthly fee.
If you’re looking to offer your customers a vehicle subscription service, you will need to use a car subscription software, like Loopit, to keep track of payments and to make sure that every vehicle is carefully checked before and after it is used by a customer. This software will also allow customers to make secure online payments using a debit or credit card.
If all you wanted was a quick summary of the car subscription service model, that’s it. If, however, you’d like to know a little more about the unique benefits this ownership model has to offer and how it differs from more traditional alternatives, keep reading!
The easiest way to explain how a car subscription service works is to compare it to the current car ownership options from a customer’s perspective.
With a vehicle subscription service, you pay a recurring fee for the exclusive use of a vehicle and return it once you're done with it. Sounds very similar to renting, doesn't it? But there are some key differences that make subscribing a far more attractive option for many drivers.
A lease is far less flexible than a subscription service and could be more costly in some cases. The main differences between a subscription service and a vehicle leasing service are as follows:
If you would like to find out how you can use our software for car dealerships to launch a new vehicle subscription service in Australia or elsewhere, call 02 8278 9255 to speak to us now.
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