Car subscription business reports record growth

AAM Group has reported that it’s car subscription business, Mycardirect, has achieved profitability 18 months ahead of schedule.

Established in September 2020, it is now profitable on a monthly basis and together with AAM Group’s other brands, Onwrd and BestCarFInder, has seen sales increase by 46% to £23m in the 12 months to June 2022.

AAM Group chairman David Murray-Hundley said: “Mycardirect has done a great team job as part of the revenue increase for AAM Group this year. This is particularly pleasing in a time of challenging new vehicle supply issues and a cost-of-living crisis which is putting pressure on consumers and businesses.

“Our focus must be to remain cash positive at a time when all businesses are experiencing challenges in the current economic climate.”

Mycardirect CEO Duncan Chumley said: “I am very proud of what has been achieved in turning a start-up company into a profitable business within 18 months. Mycardirect’s car subscription product appeals to both retail and business customers and that goes to the heart of our success. The flexibility we offer gives individuals and companies the confidence and peace of mind to choose a vehicle, safe in the knowledge that if circumstances change, they can switch vehicles or reduce, extend or cancel the contract to suit. I am confident that this excellent proposition will herald further growth over the next two years.”

AAM Group manages a fleet of over 3,000 vehicles, with EVs and hybrids now making up make up nearly 40%.