The inherently flexible nature of car subscription means that customers are less sensitive to vehicle age and condition, this creates a significant opportunity to monetise used vehicle assets more efficiently than traditional leasing would allow.
In traditional leasing, providers face the challenge of managing end-of-lease returns and finding ways to sell used cars. Car subscription, on the other hand, offers a more predictable stream of revenue since customers pay a monthly subscription fee, and providers can manage the resale of used cars in a more controlled manner.
Because customers are less sensitive to vehicle age and condition in car subscription, dealerships can keep cars in circulation longer and extract more value from them. This creates an opportunity to monetize used vehicle assets by offering them to subscription customers at a lower price point. By doing so, dealerships can reduce their inventory costs and generate additional revenue streams.
Used Vehicle Procurement
As a demonstration of how car subscription can complement traditional ownership models, ex-lease vehicles can be a reliable source of used car inventory for car subscription services. These vehicles are typically leased for a fixed period and have strict maintenance schedules and mileage limits. This means that they are usually well-maintained and have a known history. Additionally, leasing companies may also perform regular inspections and repairs to ensure that the vehicles are in good condition when they are returned.
By acquiring ex-lease vehicles, car subscription services can offer their customers a wider variety of well-maintained vehicles at a lower cost than purchasing new vehicles. This can benefit both the service providers and their subscribers by providing a cost-effective and sustainable way to meet the growing demand for flexible transportation options.
Other Car Subscription Providers
Car subscription itself can play a key role in providing a valuable source of used car inventory for providers. As more customers subscribe to car subscription services, providers can acquire a steady stream of well-maintained, pre-owned vehicles to add to their inventory.
With car subscription, customers typically agree to use a car for a set period of time, typically a few months or up to a year, and return it at the end of the subscription period. The returned cars are then inspected, maintained, and prepared for resale. These cars can be a valuable source of used car inventory for providers, as they are usually well-maintained and have a known history.