Wagonex, the Cardiff-based car ‘subscription’ specialist, has seen online enquiries rise by around 250% in the last six months, fuelling speculation that people are much more open to subscribing to a flexible car supply service as an alternative to actually owning one. But will they really account for 10% of all car use by 2025?
Wagonex, founded in 2016, works for manufacturers and retailers alike, building and launching their subscription platforms aimed at tech-savvy customers. Apparently, EVs are among the most searched-for vehicles at the moment.
What does all this mean? What does it mean for the car retail sector? Are cars really just consumer goods now seen in the same way as a mobile phone or TV streaming service?
We’re sure car ownership still remains the Number One choice of most British drivers, but also know that these figures can’t be ignored. Subscription has a lot of benefits that really appeal to some drivers and the lockdown has really brought some of this home, such as having to pay lease payments on cars that sat on the drive for month after month.
And certainly customers can switch between cars or upgrade, within the terms of their specific contract.
Inevitably, it seems that the online power of the subscription service has influenced the growth in interest. Companies such as Wagonex have got their act together when it comes to easy-to-use online platforms. Customers can really get into the how and the why very easily because the websites tend to be well-designed and simple to navigate.
Wagonex founder, Toby Kernon, says: “The shift towards the subscription model of car ownership has been coming for a while and, before lockdown, research suggested subscriptions would account for 10% of all new registrations by 2025.”
A bold claim. He backs it up with this comment: “When you consider that 80% of drivers didn’t use their cars at all during lockdown while spending an average of £226 a month for the privilege, it is easy to see why people are making the shift towards flexible ownership.”
We’re not sure where those figures come from but we’re sure Toby knows his onions, so who are to argue?
What do you reckon? Ten per cent of all new registrations by 2025?