What is car subscription and the different types of subscriptions?
Most of us know
Netflix
and Disney plus subscriptions. Your children make you sign up and you think to yourself “I can cancel that at any time if I want to when they get bored with it” but you never do. Car subscription is not a new thing. I still remember a few years back
Porsche Cars North America
launched the Porsche Passport product. The whole point of a subscription is to give less capital upfront and flexibility to be in and out of different cars when you want.?
So who are our typical customers at
AAM Group (Alliance Asset Management Ltd)
who require a subscription to our mobility services:-?
- The customer wants a Landrover defender in the winter and a Porsche 911 convertible in the summer. This is where our longer-term solution with
Mycardirect
comes in.
- Customers who are on the waiting list for cars and need something for a period of months.
- A new employee working through a probationary period.
- Customers who want to test a Hybrid or electric vehicle before committing to buying one.
- In the case of our super flexible
ONWRD
platform, our customers may only need a car for an hour, a day, a week, or always need to make sure they have transport. That's where our partnerships with
Hiyacar
and
Jyrney
come in.
- Then we have B2B long-term customers. At the moment we are finding that over 60% of our vehicles on B2B subscriptions are Electric.?
- Lastly, we have customers who want the best deal and not necessarily the highest-spec car and will use our
BestCarFinder
solution.
- Customers who want choice. Because AAM has been in the space for 30 years, we can pretty much get hold of any car you want. We have petrol, diesel, hybrid, and electric, from a Fiat 500 to a Range Rover Hybrid or Audi RS Etron GT.
- Insurance. Really make sure you read the T&Cs. You could find yourself having a deposit locked away until a subscription platform has the time to sort out the insurance claim, which could be months.
- Some subscription platforms will only cover UK residents. At AAM Group we are able to cover non-UK residents.
- Age restrictions, if you are young, then don't expect to be able to get in every car offered by platforms.?
- Pricing - Subscription on the face of it might look more expensive than traditional PCP. However, take into consideration the all-in-one package, lower deposit, and flexibility.
- Too cheap to be true - There are a lot of deals out there. Just look for a
Tesla
Model 3 and you will see some really cheap deals. The key is in the detail around mileage restrictions and other added details, like exit clauses.
So that's the basics. Plenty of choices out there and lots of options and t&cs to get your head around.?
Chairman of AAM Group Ltd including MyCarDirect, ONWRD, Alliance Fleet and BestCarFinder
CEO and Co-Founder
Pario Ventures
investor in AAM Group
Data Scientist | MBA | MSBA Candidate at Georgetown University
1 年David, thanks for sharing!
Drives value from Data & Analytical Platforms | GM, Regional lead, SVP Sales | Scales SaaS teams | Customer Success | Advisory & Coach
2 年Good article David, interesting points on term and flexibility as vehicles increasingly become utility. Interestingly I have to question to value of a sporting car in the Surrey/south west London region - where the volume of traffic today, reduces us all to the queue! Do you believe electric will be the next wave or will hydrogen or .... come down track for 2030 wind down of petrol/deisel? I guess we have a couple of subscriptions before the outcome is known.
Managing Director at ONWRD
2 年David Murray-Hundley The Grumpy Entrepreneur great article and the point you make around flexibility is paramount. At ONWRD we are working harder to de-bunk the myth that shorter commitment greatly reduces choice. Right now, we are helping Customers with just 3-4 week subscriptions find BIK-friendly hybrids, PHEV's and BEV's simply because we can source vehicles from so many suppliers across the UK, from the AAM Group (Alliance Asset Management Ltd) and even purchase specifics in tandem with Mycardirect. And if we cannot get the vehicle to the Customer, then we are getting the Customer to the vehicle - our new partnership with Jyrney delivers the driver to the car!
Helping startups and scale-ups to start up...and grow...and exit!
2 年Where's there's complexity I believe that customers look for trust. Someone who's been a round a while, values their reputation and is unbiased. This used to johnlewis in retail and is AAM Group (Alliance Asset Management Ltd) when it comes to #carsubscription