Vehicle Subscription Services are a Hot Niche
Center for Performance Improvement
· 2 min read
Traditional car ownership isn’t going anywhere in the foreseeable future.
According to respondents in Autotrader’s Generation Z Study, 92 percent of those asked said they still intend to purchase a car. But there’s a segment that will benefit from an alternative to the typical car ownership model, and that’s where vehicle subscription services fit perfectly.
What a Subscription Service Is All About
It’s a no-hassle, worry-free way for a client to drive the type of vehicle they want when they want it. It provides flexibility to choose a fuel-efficient car for long-distance drives, a larger SUV for carrying passengers, or a truck for hauling cargo.
The Lowest Cost of Driving
The Jeff Wyler Automotive Family in Cincinnati, Ohio has unrolled the first-ever vehicle subscription service in their market, Wyler FastLane.
Their eCommerce director, Kevin Frye, says, “With Wyler FastLane, you have one monthly payment that gives you access to an entire fleet of cars. The payment includes all maintenance and service, taxes, and insurance is also included. You can switch vehicles as often as you want, and there are no long-term commitments. Essentially, it’s a month-to-month agreement. You get the perfect car for every occasion.”
It’s a bold step forward, and one that manufacturers have been eyeing. Cadillac, BMW, Porsche, Mercedes-Benz, Volvo, and others have been developing and rolling out their own versions. However, a dealer group could create their own version, serving non-traditional customers in a way a single OEM simply can’t.
Offer the Best in Customer Solutions
For a successful vehicle subscription service, the focus must be correct: on the customer. Kevin Frye explains their purpose: “Our goal is to provide flexible mobility solutions for our consumers and become more consumer-facing in the process.”
The long-term commitment to a car is gone. The cost of maintenance is a moot point. Insurance costs are included. Vehicle subscription services can make car ‘ownership’ extremely simple. For those who aren’t interested in the downside of leasing, financing, or owning a car outright, offering subscriptions is an ideal solution. It’s evident that the customer is the focus.
Creating a vehicle subscription service isn’t for the faint of heart, and there are plenty of questions to answer and hurdles to jump. If you’re bold enough, it could be the right way to differentiate yourself from the competition and provide the most comprehensive solutions to your customers.
Are you ready for the challenge?
From Inner Circle News