Almost half of consumers interested in car subscription

Nearly half (49%) of consumers would be interested in a subscription service for their next vehicle, says PwC UK.

44% of these consumers looking to buy a car in the next five years would choose subscription over a traditional purchase or lease while 4% currently own cars and would not have wanted to replace their vehicle but would be interested to do so under a subscription offering.

The remaining 1% represents consumers who do not have a car and would not be looking to buy, but would be interested in having one under subscription.

Akshara Chandhok, director in PwC’s Automotive Practice, said: “The clear conclusion from our survey is that front-runners have a chance to set the pace and seize market share as subscription takes hold.

“Companies that fail to offer this option are at risk of losing out, especially now that many carmakers are moving towards EV-only output.”

This demand for subscription offerings is driven by younger customers, particularly for premium and luxury brands.

Key factors making subscriptions appealing include access to latest cars and technology, running costs and convenience.

Upfront fees are lower and unlike leasing, customers can sign up for shorter time periods which means they can switch models at short notice.

Subscription offerings also ten to include a package of additional benefits such as insurance, digital services, maintenance and roadside assistance.

Cara Haffey, manufacturing and automotive lead at PwC UK, added: “Subscription could also help to manage supply rates more effectively by putting surplus stock up for subscription rather than conceding to lower prices or sitting idly on forecourts.”