Things in the automotive industry are changing, and car subscriptions could be the next big thing.
Leasing a car
has been the affordable and low-risk go-to alternative to car ownership, but some industry experts think that car subscriptions could be even more appealing to a younger generation of drivers. The car-ownership experts at Jerry
dive into why car subscriptions are growing in popularity, where they’re taking off, and what this new trend means for the industry. What are car subscriptions?
A more flexible alternative to leasing or ownership, car subscriptions provide a unique opportunity to use a car for periods as short as a month.
The subscription model also offers users the option to cancel at any time, and often includes access to additional services such as maintenance, insurance, tire changes, or even the option to swap cars.
According to Auto News Europe
, automakers and analysts estimate that between 20 to 30 percent of new cars on the market in 2025 will be sold via car subscriptions. Why car subscriptions could close the gap for EVs
Interest in electric cars is growing, but many consumers still face sizable barriers to outright ownership.
Range anxiety is a huge concern for many drivers, and while they save you money over time on fuel and maintenance costs, electric vehicles are still significantly pricier than their gas-powered counterparts.
Incentives like the $7,500 federal tax credit help to close the gap, but many popular EVs no longer qualify for the credit, not to mention that electric cars tend to have higher insurance costs
overall. Auto News Europe said that in Europe, there are seven times more EVs on car subscription services than gas-powered cars.
A subscription service provides a more affordable and risk-free entryway into electric car use without the risk of committing to a car that you’re not 100% sure about.
As many automakers are now finding out, making electric cars is not cheap.
Not only are the raw materials themselves expensive, but a commitment to making a more electric fleet requires a total overhaul of the manufacturing process itself and time and money invested into converting factories to make electric cars.
Capitalizing on a car subscription service and using that money to invest back into EVs could be the key to long-term success.
Should you try out a car subscription service?
Depending on your lifestyle and your needs as a driver, it depends.
A subscription service is a great entry point into a flexible vehicle access plan for drivers who want the option to mix things up. If you’re a regular driver who just wants an affordable option and don’t mind making a bit of a longer commitment, leasing is the way to go.
Regardless of which option you choose, using Jerry to buy your car insurance will help you free up money for your dream car.
If you’re hesitant to switch plans or insurance providers because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and can even help cancel your old policy. And if you have any questions along the way, just text one of our agents through the app.
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