Subscription could smooth EV uptake
- 23 March 2022
- Posted by: Alan Feldberg
- Category: News
Subscription models could help new car buyers who are hesitant about electric vehicles make the switch to the technology, according to the latest industry research by What Car?.
A subscription model allows customers to obtain short-term leases on cars, with insurance, tax and other fees bundled into a single monthly payment, and acts as an alternative to traditional leasing and finance.
Subscription packages often allow customers to switch between new models, too, over the duration of the lease.
What Car?’s research of 822 new car found 45.26% of buyers would be more interested in obtaining an electric vehicle through a subscription model rather than leasing or financing one as a means of testing the technology first.
Ease of use, ability to swap models and lack of stress were highlighted as key factors by those in favour of subscription models.
Steve Huntingford, editor, What Car?, said: “Subscription models are a niche in the industry, but as our research shows they could act as an important tool in furthering electric vehicle uptake for buyers who may be hesitant over the technology. This is in particular if the manufacturer allows buyers to swap between internal combustion and electric models during the subscription.”