Few manufacturers have dared to change the car business model, betting on the subscription. A program that allows you to always have a new car, even if the vehicle is not owned. In Europe, subscriptions are increasing in the northern countries of the continent, although they still do not exceed sales.
Buy a new car or join a subscription program? This is one of the new modalities that are beginning to be imposed in some manufacturers. A new way of having a new car launched by Volvo, Polestar and which has also been extended to the new Lynk & Co 01, which has started its commercial career in the Old Continent, offering customers a new experience.
And is that the subscription allows access to a specific and fully equipped model paying a monthly fee that includes everything from maintenance, repairs to insurance, including relevant taxes for a contractually agreed period of time. After that time, the customer can change to another model and thus always keep a new car or a more exclusive model. In Europe, this system is taking over and it has more and more followers, who do not want to own a car.
Long-term subscription programs have positive benefits
This is clear from a new study carried out by the expert consultants of «Boston Consulting Group», whose conclusions show that They do not pose a danger to the classic sales format, but they do pose significant competition, and which is expected to continue to grow as we approach the next decade. In fact, by 2030, the study estimates that manufacturers will enhance this strategy to bring their models closer to younger customers.
These are precisely one of the great objectives, since in European countries, interest in a brand new car begins to disappear and there is more commitment to shared mobility, another of the great bets of the brands, despite the health situation. This reality puts more emphasis on the subscription compared to sales having a more positive effect that may end up eventually causing the vehicle to be purchased. In addition, the analysis places special emphasis on electric cars, whose price today is very high, even in the lowest segments.
The study points out three key and erroneous myths that customers consider about subscription contracts: the first is the change of car regularly, in which only one in four clients admits this condition. The second is the high cost of a subscription, which is a mistake because there are brands that offer their models with a monthly payment of 199 Euros, less than a financed fee. And third, customers prefer monthly subscriptions. Another big mistake, since the longer the time, the lower the monthly feel, so the study points out that 8 out of 10 clients bet on a long-term contract. The only advantage of this monthly format is that it can be canceled at any time.