Consumers have more options than ever before when it comes to vehicle ownership. Beyond purchasing and leasing options, vehicle subscription services are here and becoming increasingly popular.
Similar to subscriptions for a phone or streaming service, car subscription services entail customers paying a set amount each month to gain access to a single vehicle or various vehicle models, as well as insurance coverage and perks like maintenance or roadside assistance.
Currently, a number of different companies like Land Rover and Porsche are already extending car-subscription services to customers. Outside of car manufacturers, there are third-party providers offering subscriptions, as well. For instance, rental car company Hertz has launched a new subscription program called Hertz My Car, and the company Borrow solely provides electric vehicle-subscription services.
While this type of subscription service is just now taking off, it will likely become an even bigger trend in coming months and years – especially as consumers become more acquainted with the companies that offer these services and how they work.
Vehicle Subscription Services Move Mainstream
There are certain demographic groups that have already embraced vehicle subscription services. Namely, younger drivers and young families with children below 14 years of age are the most attracted to these vehicle subscription options because they prefer this subscription experience over leasing a vehicle or car ownership. In addition, drivers with the highest annual mileage, as well as those drivers interested in new vehicles, luxury sedans or sports cars are more statistically likely to go for an auto subscription service, likely in large part because they want to drive these types of vehicles without actually leasing or buying them.
In terms of subscription plans, Research and Markets reports that drivers tend to prefer longer contracts, particularly those with at least a six-month contract period. On top of that, monthly payments and a fair, fixed overall contract period with low monthly fees is currently the preferred subscription model in the US, as subscribers want as much value as possible with their agreement.
But while vehicle subscribers currently skew toward younger drivers and those who are interested in luxury or sports vehicles, there are many subscription providers that are working on attracting other demographics, as well. Vehicle-subscription company Canvas, which is owned by Ford, has a more basic, used-car subscription service that costs a lot less than luxury subscription services. Fair car subscription, owned by Uber, and Flexdrive offer subscription services that are handled from beginning to end on an app, targeting more budget-conscious drivers.
With these subscription services expanding, and more and more companies getting on board to offer these services to customers, it’s likely that the vehicle-subscription experience will eventually be less for a specialized group and more for the mainstream.
Vehicle Subscriptions Require Vehicle Logistics
Ultimately, no matter the monthly subscription fees, contracts or enrollment fees a company puts into place, that company needs to make sure it can successfully meet customers’ needs in this arena. Those companies that are interested in setting themselves up to offer vehicle-subscription services in the near future will want to invest now in a logistics plan that enables those subscriptions to happen.
Crucially, auto-subscription providers must have access to storage facilities where they can keep vehicles for periods of time when they’re not in use. Ideally, these storage locations can also serve as hubs where the vehicle can undergo maintenance, reconditioning and repairs between different subscriptions.
Additionally, companies looking to offer subscription services must have a means of transporting vehicles, particularly when it comes to taking cars back and forth between storage locations and showrooms. Depending on how many vehicles are being transported, the distance they’re being moved and the preferences of the subscription provider in question, that provider may want to utilize either car haul or drive-away services to complete these vehicle moves. While car haul enables the provider to move multiple vehicles at once, often at longer distances, drive away can be used for shorter moves where one vehicle is being transported at a time. Drive-away services also allow for more of a white-glove subscription service, as well, which could be especially useful for those companies that want to create a luxury-based experience for their customers.
Companies may also want to consider outsourcing services like title and registration to a provider that specializes in these services, so they can get vehicles processed quickly and made ready-to-drive before they get them cycled into subscription use for customers.
ACERTUS as a Subscription Partner
Vehicle-logistics providers like ACERTUS are already well-positioned to partner with companies and help them execute a successful vehicle-subscription program, regardless of whether they need to move luxury cars, used vehicles, oversized vehicles, coupes, electric cars or any other type of automobile. ACERTUS’ wide carrier and driver network, which extends across North America, ensures it has both the car-haul and drive-away services to meet any provider’s specific transport needs – whether they need individual vehicles moved short distances, multiple vehicles moved at greater distances or both types of transport options. wherever they need to take place across North America.
Storage-wise, ACERTUS has more than 55 storage locations in both the United States and Canada, which can serve as a go-to sites for companies that need to store vehicles prior to or in-between subscription uses. And because ACERTUS offers care and maintenance and reconditioning services, as well, this work can be done mid-transport or while vehicles are being stored.
Additionally, for those companies that want help completing time-consuming title-and-registration work for their subscription vehicles, ACERTUS can assist in these areas, as well – even ensuring that all vehicles are registered, fully compliant, plated and 100% ready to drive before they ever get transported or moved out of storage.
The team at ACERTUS will work closely with automaker, retailer, rental car company or other company in question to help it get set up to with vehicle-subscription services, establishing a program that makes sense for its particular business and for its customers.
Learn more about ACERTUS’ full range of transport and vehicle-logistics services at https://acertusdelivers.com. To connect with one of our team members or receive a pricing quote, contact us here or call us at this phone number: 855-ACERTUS (855-223-7887).