In this developing customer base and rapidly changing environment, car subscriptions have the potential to assist OEMs and dealerships in ensuring their businesses. It’s time to break some myths and reveal the truth regarding this innovative digital mobility solution.
Many OEMs have been rebranding themselves as mobility companies in the last few years, offering services beyond simply standard car sales and maintenance. This indicates that digital mobility services, like auto subscriptions and digital rentals, are already being discussed.
There are several common and ongoing myths about car subscriptions that need to be debunked.
It’s not correct that a subscription for a vehicle is more expensive than buying a car.
When you buy a car, you have to make a large initial investment and the original cost will be depreciated by 25%, so if you want to sell the car later, you won’t get what you paid for. However, when someone subscribes to a car, they don’t have to pay for getting on and off, they just pay a monthly fee. With this service, users can have everything from insurance, repairs, maintenance, and overhaul. It will save you from all the fixed and unexpected expenses associated with owning a car.
It’s not correct that the services included in a subscription are limited.
With a vehicle subscription, everything is included at once: all hazard insurance, maintenance and service, ITV, breakdown assistance, and road tax, and you can even change vehicles as your life changes. In addition, mileage is included at the time of subscription but can be renewed at any time as needed at the time of subscription.
The all-inclusive car subscription plan is where consumers and businesses pay a single monthly fee that covers most car-related expenses, excluding insurance, fuel, or battery charging. A subscription often includes road tax, servicing, maintenance, and financing costs associated with the vehicle itself, and is usually in the form of a lease or rental agreement.
It’s not correct that you have to take the car for several months to falsely deregister it.
Subscriptions have added value and flexibility. The period of the contract is fully customizable by the customer, and the user pays a fixed amount each month, allowing the car to be returned when it is no longer needed. The duration can be 1, 3, 12, 24, or 36 months and once the period exceeds the time mentioned in the subscription, the car can be owned for as long as the user wants.
It’s not correct that the subscription is only for individuals.
Initially, the service was more end-user focused, but as subscriptions gained more subscribers, entered the market, and gained momentum, companies came to see this model as an ideal solution for their businesses through subscriptions. Options such as vehicle change emphasize the flexibility of the subscription to suit each company’s needs.
One of the biggest advantages of car subscription is that it’s a 100% digital process. So, users can save a lot of time on going to the dealer. Take some time to decide what your ideal vehicle is and it can be delivered to your home with one click or you can pick it up at the drop-off point by yourself on an agreed-upon date.