Industry News: Most Consumers Don't Know About Car Subscription Services

[William Maley]

More and more automakers are launching subscription services as another option to get into new or used cars. But a new report shows the subscription services are still flying under the radar for most consumers.

Autolist recently conducted a survey with 1,428 car shoppers in the second half of April. This is what they found out.

• 70 percent of shoppers had no idea that such a thing existed
• Out of the 30 percent of shoppers who knew about subscription services, only half could actually name one
• 33 percent would consider a subscription service for their next vehicle. The number climbs to 45 percent when asked if they would consider it in the future
• The big draw to subscription services? 37 percent of shoppers said the ability to switch between different types of vehicles. This was followed by no long-term commitment (32 percent).

The results aren't really that surprising. Only one subscription service, Care by Volvo is available nationwide. All of the other services are in limited to one or a few cities. Book by Cadillac is only available in New York, but there are plans to expand it to Dallas and LA in the coming year. Not helping is most of the services being offered come from luxury automakers which means high prices. 

Source: Autolist

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[riviera74]

All forms of innovation start at the high end and work their way down.  Expect subscription services to replace car buying in at least 15 years or so.

[balthazar]

15 years?? Right now only 15% can name a car subscription service.
It will slowly add to the buying/leasing mix, but it may never "replace" purchasing, ever.

[ccap41]

And 15 years ago flip phones were a thing.. Once they get their foot in the door things can advance extremely quick. 

[Robert Hall]

I can't name a car subscription service, but I can see the appeal of such a service...could make sense for people like 'blu that change vehicles every few months. 

Edited May 4, 2018 by Cubical-aka-Moltar

[G. David Felt]

Subscription services are for a minority of people, not the bulk of society.

[Drew Dowdell]

Car subscription services only work financially in an extreme minority of circumstances or if you have a set timeframe where you need a car and don't want to have to worry about offloading it when you're done.

If the pricing was a little better, I could see subscribing a sports coupe over the summer and an AWD crossover I'm the winter. Or if I know I'll be moving, subscribe to a truck for a few months before switching to something else.

The idea intrigues... But the costs aren't there yet.