July 30, 2020
Category: Faconauto News
This service can represent a new business opportunity for dealers and a revolution in the way of acquiring vehicles.
Consumption trends have been radically transformed after the impact of the coronavirus. If prior to the pandemic the concept of ownership was in full transition, change has accelerated in recent months. Factors such as flexibility and adaptation have been placed on the front line. Against this background, what is the future of the automotive subscription model?
A study by the market research and analysis consultancy Frost & Sullivan It foresees that for the next 5 years this acquisition model will expand throughout Europe. In fact, they estimate that in 2025 10% of vehicles in Europe will be marketed under subscription models. In Spain it represents a figure of around 100,000 vehicles.
It is not a new concept as there are more and more automotive-related projects that are betting on subscription. One of the most recent is Wabi, from Santander Consumer Finance, through which the customer has an exclusive vehicle through his reservation through an app or via the web.
These models are characterized by having great flexibility. Its operation is based on a monthly fee thanks to which the customer can enjoy a car and its associated expenses. The driver will only pay the cost of fuel.
Opportunities and risks for dealers
The subscription model bursts into a changing and changing market. Therefore, it opens different opportunities for the entire sector, such as dealers. The door is opened to a new business model that allows to improve and mobilize the stock of dealers’ vehicles. In addition, it adapts the concession to the new needs of the clients, remaining in the “top of mind” of the consumer.
Still, this model also carries its risks. It can affect the classic concept of property, employment, the conventional way of selling a vehicle … What does seem evident is that mobility will increasingly have more digital and flexible features.
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