Globally, the US continues to be the leading market to test and launch vehicle subscription offers. The analyst estimates about 32 vehicle subscription programs in the US at various stages of life cycle in 2018, and it is expected to witness more than 50 programs by 2025.
The analyst carried out more than 2000 interviews among potential customers of vehicle subscription in the US.Respondents included car owners, decision makers in car purchasing, suburban and urban inhabitants, and people with no previous experience in vehicle subscription.
Majority of the drivers, who took part in the study, drive new, volume brand cars that were purchased outright.Almost 90% have experience with different car usership models, such as leasing, rental, and carsharing.
Currently, awareness of vehicle subscription service is the lowest (52%) out of all methods of car usage. Half of the interested drivers said they would use vehicle subscription for their main car. When it comes to vehicle segments, the most preferred include compact SUVs, large SUVs, and midsize vehicles. Respondents also expressed preference for used cars over new cars owing to lower price. Similarly, volume car brands have more preference than premium cars due to cost-effectiveness.Demographically, drivers from younger age groups are more attracted to vehicle subscription. Also, young families with children below 14 years of age are more inclined to go in for vehicle subscription. Furthermore, new car drivers, large, luxury & sports car users, and drivers with the highest annual mileage show the most interest in vehicle subscription service. The key factors influencing people to choose vehicle subscription are monthly fee that has the highest influence on the decision for choosing vehicle subscription service, followed by vehicle class. Another key factor which tilted the respondents in favor of vehicle subscription was ease of ownership, which is the hassle-free nature of vehicle subscription where aspects, such as maintenance, repair, and insurance were taken care of by the company.With regards to usage, half of the potential vehicle subscription prospects consider using the car as their primary one. While the rest consider using it on certain specific occasions, such as need for another car or travelling. As for contracts, drivers would prefer longer, at least a 6-month contract period, and higher or unlimited mileage option. They show no interest in paying for vehicle swaps, some are not interested in swaps at all. Regular monthly rates and a fixed contract period with lower monthly fees is the preferred model for vehicle subscription in the US.
Author: Joe Praveen Vijayakumar
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