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How does car subscription compare?

Car subscription is much more than long term rental or short term leasing

George Skentzos
Head of Customer Experience
Last updated on 
September 21, 2022
Introduction

Introduction

Sourcing Vehicles

Sourcing Vehicles

Procurement

Procurement

Financing

Financing

Acquiring Customers

Acquiring Customers

Above The Line

Above The Line

Point of Sale

Point of Sale

Key Value Propositions

Key Value Propositions

Discounts & Promotions

Discounts & Promotions

Lead Management

Lead Management

Inbound Lead Generation

Inbound Lead Generation

Outbound Lead Generation

Outbound Lead Generation

Managing Customers

Managing Customers

Customer Onboarding

Customer Onboarding

Customer Service

Customer Service

Customer Experience

Customer Experience

Legal Agreements

Legal Agreements

Receivables & Arrears

Receivables & Arrears

Collection & Handover

Collection & Handover

Delivery

Delivery

Fines & Tolls

Fines & Tolls

Breaches & Reposession

Breaches & Reposession

Insurance & Claims

Insurance & Claims

Eligibility

Eligibility

Claims Management

Claims Management

Incident Management

Incident Management

Fair Wear & Tear

Fair Wear & Tear

Fraud Risk & Prevention

Fraud Risk & Prevention

Managing Vehicles

Managing Vehicles

Subscription Structure

Subscription Structure

Profitability & Performance

Profitability & Performance

How does car subscription compare?

Perhaps the biggest misconception with car subscription is that it's synonymous with long term car rental or short term car lease, however there are a number of distinctions that uniquely position car subscription as a new market innovation beyond typical car rental.

There are two key areas that uniquely define car subscription from traditional car ownership or rental:

Minimum duration

Car rental and ownership exist at opposite ends of the spectrum from a duration perspective. Car rental is often a temporary mobility solution ranging from days to weeks at most, while traditional methods of car ownership like purchase, finance or lease have an inherent duration of years at the very least.

Car subscription bridges the gap between car rental and ownership with a flexible duration that can range from a month up to several years depending on the individual needs of the customer.

Sense of ownership

If we think of purchase, finance or lease as providing an ownership experience and rental providing a usership experience, then car subscription sits somewhere in between.

In the simplest terms, subscribers want to be able to drive a car they would otherwise own but with the flexibility of a rental.

Figure 1. Car subscription bridges the gap between rental and ownership.
About the author
George is the Head of Marketing and Customer Experience at Loopit. Having originally started his career as a motoring journalist and founding team member for one of Australia's top automotive startups, George has a strong passion for automotive, business and growth marketing.
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