Subscription models reveal generation gap
- 4 October 2021
- Posted by: Alan Feldberg
- Category: News
New research has found that more than six in 10 millennials would rather access a car via subscription than owning it outright.
New research by Volkswagen Financial Services UK (VWFS) has found that 61% of people aged 18 to 34 are interested in accessing a car via subscription, similar to services such as Netflix, where you can cancel anytime and all costs are bundled into a single monthly payment.
However, the interest in subscription models appears to expose a stark generational divide. Just 39% of 35 to 44 year olds are interested in a subscription service. This drops to 26% among people aged 45 to 54, 18% among people aged 55 to 64, and 11% among people aged 65 to 74 (11%).
Mike Todd, CEO at Volkswagen Financial Services UK, said: “The way that people buy and rent cars is fast evolving and we need to make sure that, as our customers continue to engage more with digital technology, we make their online journey as simple and as convenient as possible. Subscription models are becoming increasingly central to how we consume content, food, and almost everything in between, so it stands to reason that people – particularly younger people – are interested in accessing vehicles in the same way.”