Navigating car subscription service implementation

September 04, 2019 | Case Study

Until recently, leasing and buying have gone uncontested as the two main models of vehicle ownership, but automakers are now exploring vehicle subscription services as alternatives to conventional options. While traditional buying is declining in popularity due to cost and supplemental requirements like insurance and maintenance, leasing falls short in its long-term contract structure. Alternatively, vehicle subscription models are characterized by flexible terms and feature bundling, offering short-term contract options as well as inclusive benefits like insurance coverage, maintenance, roadside assistance, and the ability to swap cars. Additionally, most – but not all – car subscription services allow users to swap models based on seasonality or general preference. Today, Care by Volvo (CbV) is the largest subscription program, but it is coming under regulatory scrutiny in California for the role dealerships play.