Nine million UK motorists might be ready to make the switch from car ownership to subscription, according to the results of research from Wagonex.
While its representative study of 2,000 people found that subscription could be the first choice for around half a million Brits looking for their next vehicle, it determined that up to 9.2 million would consider the mobility solution due to its flexibility, deposit-free format and not having to worry about servicing or maintenance.
Alongside Wagonex, car retail sector suppliers including Karzoom and Loopit are already helping dealers embrace the model and Wagonex claims that interest is on the rise, with Google searches for ‘car subscriptions’ peaking in February 2023 and has since remained four times higher than in 2018.
Wagonex chief executive Toby Kernon said: “Over the past six years we have seen that the car subscription market is really gaining momentum as a flexible and digital first way to have a car.
“The survey validated this by showing that as well as being able to meet the needs of an individual’s lifestyle, the subscription model can take away any servicing or maintenance worries.
“While still in its early stages, we believe we will see further advances in this market this year with more innovations emerging that will help to bring subscription to the fore as a mainstream way to own a car.”
Some car retail sector experts predict subscriptions could take over from PCPs as the most popular way to fund a private vehicle.
In February AM reported that Mycardirect is expecting to double its revenues in 2023 as demand for vehicle subscriptions continues to grow.
Earlier this year AM also took an in-depth look at the market’s Q4 2022 offers to see how they compare.
Kernon said: “The traditional car industry is coming under increasing pressures, from online sales to the phasing out of ICE vehicles, so it’s no wonder that all players in the car industry, as well as consumers, are looking seriously at subscriptions.
“It offers an additional route to market that is easy to manage and quick to implement. While for the consumer it offers no hassle maintenance and the flexibility to exit more easily than most other types of vehicle contracts.
“And, with the growing movement towards low-pollution zones, we believe EV car subscriptions will increase in popularity, allowing drivers to make the transition to electric cars without having to fork out for private ownership or leasing of increasingly expensive vehicles.”