Netflix of cars: Understand the subscription car market

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As our daily movement becomes inevitable, cars gradually become the object of choice of the younger segments of the consumer. On the one hand, if the convenience only increases when buying zero kilometers and used cars, there is a significant share of people looking for new ways to get around without visible entry and installments, on the other hand, without own car.

A study by Globo Insight, published by the National Association of Motor Vehicle Manufacturers (Anfavia) in November, found that only four out of ten respondents without a car wanted to buy one.

Only four out of ten respondents without a car want to buy their own car

One of the alternatives is subscription cars, which are a kind of “Netflix of cars”, which is already recording the growing popularity of industrial companies such as Volkswagen, Fiat, Jeep and Porsche. The so-called car model service (CaaS) is a business model based on renting vehicles for periods specified in the contract with a particular rental company. The option is interesting because it offers lower monthly values ​​than the loan.

As a result of the mentality of the new generation, especially millennials, who are more interested in coming and going than the model used for it, the increase in services like Uber and 99, rides and even taxis have a very clear effect. .

Infectious effect

One of the consequences of the epidemic was a change in locomotion habits by those who managed to avoid public transportation. As for subscription cars, it is a free choice between a preferred model or brand, depending on how long you want to use it.

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One of the most notable benefits is the lack of interest in insurance, maintenance, property tax on motor vehicles (IPVA) and documents, and things that take the sleep of vehicle owners.

With the increase in demand and the offer of subscription cars, the trend of depreciation with the increase in the number of subscribers makes the model more favorable than paying the financial installments. Examples abound: Localiza was introduced Mu With exclusive benefits to its customers; Already Uscar Demonstrates the possibility of having a “zero car throughout the year”.

Eye giants

Speaking of the industry’s greats, Porsche Drive has been providing a kind of subscription club in the United States since 2017, giving members the right to drive different models for about 2,500 kilometers per month. Force Drive – Rental, which is not a subscription, but a way to rent a car for a short period of time (days or weeks). Rental price depends on the vehicle and starts at 5 245 per day.

The FCA team, which owns automakers such as Fiat and Jeep, has introduced a new company in Brazil called Fluva, which will offer cars of both brands in new long-term rental models in Parana and Sao Paulo.

Volkswagen recently announced a new subscription plan for zero kilometer cars called Volkswagen Sign & Drive, which is currently only available in the city of S சாo Paulo and the interior of Sவோo Paulo. Negotiations can be done digitally from selecting the model to sending the documents and signing the contract.

The user has to leave the house to pick up the vehicle

The initiative is part of a VW digital transformation project that seeks to engage younger consumers. The plan only offers T-Cross models for 12 months and Tiguan for 24 months only. Vox has announced its intention to expand the service in 2021 with new options. In the provided simulations, the monthly fee for signing a D-Cross DSI would be R $ 1,899, and for a Tiguan comfort, $ 3,659 per month. It is approximately $ 87,816 after 24 months.

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An interesting thing to note is that at the end of that period, no benefit was offered to anyone who wanted to buy a vehicle. The German manufacturer said in an interview Four wheels, The project’s focus is not on selling cars, but “providing more facilities to the public”; A change of mindset about movement patterns may bring additional evidence of reliance and news that was unthinkable until recently.

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Betto Marcelino, Bi-weekly columnist Techmundo, Is an agronomist, corporate partner and director of government relations at ICT, which is organizing the Smart City Expo CurieTiba, the largest event in Brazil with the FIRA Barcelona logo on smart cities.

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About the Author: Chris Guerrero

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