What are Car Subscription Services?
The way that we pay for things is changing. Millions of us now sign up to pay monthly for streaming services, such as Netflix and Spotify. However, this model is expanding out of the digital realm and into the real world. People are starting to pay for their cars according to the same monthly subscription model. Car Subscription Services are a new way of leasing cars that allow users to pay monthly for their car, insurance, breakdown cover and tax.
Drover
Drover are one of the fastest growing Car Subscription Services in the UAE. It has received a five-fold growth in subscribers since 2017, and estimates that by 2027 as many as one in ten drivers might be using its model. Cars from Drover start at as low as (USD $)169 a month – and go as high as around (USD $)2,000 for cars such as BMWs.
Carpe
Jaguar Land Rover are entering the field of Car Subscription Services, with a venture named Carpe. The service is all inclusive, and covers every aspect of car use – from insurance and breakdown to tax. All costs are upfront, with a payment structure that starts at (USD $)910. Carpe is intended largely for high mileage drivers, and covers most of Jaguar Land Rover’s cars.
Care By Volvo
Volvo has bold plans for its Car Subscription Service. It expects that 50% of its sales will come from subscriptions by 2025. Volvo believes that the industry is moving away from car ownership and towards a largely renting and leasing market. Care By Volvo starts from (USD $)799 a month for an all-inclusive service. Volvo believe that the level of interest they have received stands to revolutionise the market.
Will Car Subscription Services Replace Ownership?
There is certainly evidence that the motor industry believes that subscriptions are the future of cars. With more and more car manufacturers moving into subscription services, you are likely to hear much more about the model in years to come. Whether signing up to a car subscription replaces ownership is harder to predict.