AM Online

Mycardirect car subscription business hits profit targets 18 months early


AAM Group’s Mycardirect vehicle subscription business has celebrated reaching its profitability targets 18 months ahead of schedule as it celebrated two years in business.

AAM, previously Alliance Asset Management group, officially launched Mycardirect in September 2020 but the business described the fledgling mobility operation’s success since then as “nothing short of remarkable”, adding that it had proved “vindication for the group’s decision to invest £6.5m in the project”.

The business achieved profitability in the space of 18 months and has helped AAM, which also operates the Onwrd and BestCarFinder brands, to sales grow 46% to £23m in the 12 months to June 2022.

AAM said that Mycardirect now has over 3,000 vehicles available for subscription, with electric vehicles (EV) and hybrids making up 40% of that volume.

Group chairman David Murray-Hundley said: “Mycardirect has done a great team job as part of the revenue increase for AAM Group this year. This is particularly pleasing in a time of challenging new vehicle supply issues and a cost-of-living crisis which is putting pressure on consumers and businesses.

The team at AAM's Mycardirect vehicle subscription business“I am proud of the whole team, who, collectively, have put the group into profit. Our focus must be to remain cash positive at a time when all businesses are experiencing challenges in the current economic climate.”

Mycardirect chief executive Duncan Chumley said: “I am very proud of what has been achieved in turning a start-up company into a profitable business within 18 months.

“Mycardirect’s car subscription product appeals to both retail and business customers and that goes to the heart of our success.

“The flexibility we offer gives individuals and companies the confidence and peace of mind to choose a vehicle, safe in the knowledge that if circumstances change, they can switch vehicles or reduce, extend or cancel the contract to suit.

“I am confident that this excellent proposition will herald further growth over the next two years.”

Last month AM reported how recently relaunched car subscription business Karzoom was offering car retailers the ability to enter the mobility sector.

Launched by former ASE chief commercial officer Mike Fazal, Karzoom aims to partner retailers across the UK to tap into new revenue streams from a fleet of subscription vehicles.

The AM100’s Hendy Group, its South Coast partner, was the first to deliver the new offering via its HendyGo division.

The latest AM industry special issue

The complexity of running a modern dealership can be misunderstood easily by people looking in on our industry.

Any general manager has so many plates to spin, and they must foster a talented team that they can rely on to not just do the basics well, but to sprinkle some magic on top that customers can notice.

If the marketplace in 2023 is steadily returning to relative normality, this normality now includes the drive to find customers for an increasing supply of electric vehicles, and the need to source used cars from all channels and market them carefully. And of course there are the desires to delight consumers with an omnichannel experience and to hold on to decent margins after a couple of years of strong profitability.

The expectations of both the customer and the business’s stakeholder must be achieved to the optimum level.

In this special digital publication, industry experts, prominent suppliers and franchised dealers share their insights on the major aspects required in running a modern dealership well.

Read now

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.