Advertisement feature: Consumer demand for car subscription is still outstripping supply in the UK, says Loopit
Advertisement feature from Loopit
Loopit, the leading car subscription management platform for the automotive industry, has presented its annual Global Car Subscription and New Mobility report for 2023 that reveals strong consumer demand for subscription-based mobility solutions is continuing to outstrip access and supply.
The UK study involving 1,500 participants commissioned by Loopit reveals that 71% of consumers aged 21-55 would consider car subscription for their next car and a further 90% agree that car subscription should be offered as a standard alternative alongside leasing and financing options.
“Strong demand for flexible mobility options is not yet being met with adequate supply. Some of this can be attributed to the global automotive supply chain issues, but it’s new mobility startups that are fulfilling demand while automotive incumbents such as automakers, dealerships and rental providers continue to lag behind despite being best positioned to provide these new services.” says Loopit managing director, Michael Higgins.
This is against a backdrop of technological and economic uncertainty where long-term commitment and contractual obligations from loans, leases and PCP schemes present financial burden, making the flexible car subscription option a more affordable and appealing alternative to a growing number of savvy customers.
“Rather than blunting the uptake of car subscriptions, these market conditions have created a perfect storm for it to thrive as consumers seek out new mobility options that are more flexible and offer less of a long-term financial burden compared to traditional means of car ownership.”
Loopit says much of this demand in the UK has been brought about by the recent withdrawal of Cazoo from the car subscription market, providing the ideal opportunity for “fast-followers” to thrive.
Andrew Mortimer, Executive Chairman at Loopit UK says, “Cazoo’s departure has left a gaping hole in the UK market for dealers, leasing and rental firms to fill. If anything, Cazoo has laid the foundations for such businesses to thrive with car subscription presenting a golden opportunity for them to ‘seize the moment’. But, it’s not just the void left by Cazoo. The data in the UK consumer study supports the market trend and is factual evidence of demand.”
The new study also demonstrates a strong link between electric vehicle adoption and car subscription, with 87% of respondents who currently drive an electric vehicle saying they would consider car subscription over other forms of car ownership.
Among Loopit’s global network of car subscription providers are rental car giant SIXT and Australia’s largest national car subscription provider, Motopool.
Loopit says it has now achieved 36 consecutive months of net new subscriber growth collectively across its global network of car subscription providers, which is each month since the company launched.
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Website: www.loopit.co
LinkedIn: Loopit