Evolving beyond car ownership

The rise of next-gen vehicle subscription models

Today’s drivers have a vast array of options that go well beyond traditional vehicle ownership. Consumers are now considering electric vehicle (EV) ownership, software-defined vehicles, digital purchasing experiences, flexible car ownership and car-subscription models—just to name a few.

The convergence of innovation and consumer demand is driving unprecedented change in the automotive industry. While some consumers want to reduce their carbon footprint, or avoid urban traffic, the most important driver of change is the concern around personal financial capacity in a period of prolonged global economic uncertainty. 

To meet changing consumer needs, emerging mobility providers are disrupting the industry with innovative ownership models that offer quick, hassle-free, app-enabled transportation. Our latest report takes a look at the opportunities offered by flexible car ownership options.

EV Ownership Models

Next-gen vehicle subscriptions focus on flexible, affordable mobility

Car subscription models, unlike traditional vehicle lease and loan programs, offer flexibility as well as the convenience of bundled services. Some offer customers the option to change vehicles throughout the subscription period in order to adapt to shifting needs. Others focus on customer value while maintaining more flexibility than traditional ownership models. While the markets for vehicle subscriptions and car sharing are different, consumers are benefiting from increased access to transportation options. 

Future automotive mobility value chain

Source: Deloitte Future of Automotive Mobility to 2035.

What's in it for consumers?

What vehicle subscription services mean for the auto industry


Getting more customers in the door

While original equipment manufacturers (OEMs) are rushing to develop vehicle innovations that cater to their customers’ demands, they have been slow to adopt next-gen subscription offerings that bundle all costs into a single convenient, transparent, and flexible monthly payment—something that drivers cite as the most important characteristics of vehicle subscription services.


EVs and subscriptions could be a perfect fit

Marketing EV models through subscription services can be a good way for OEMs to nudge consumers who are on the fence about electric technology.


OEMs and dealers can benefit from emerging subscription start-ups

When asked about the most important aspects of the vehicle purchase experience, consumers cited getting the highest value for their money, transparent pricing, and physical interaction as key.i By putting these customer needs first, some emerging vehicle subscription service start-ups are able to offer an efficient, hassle-free acquisition and ownership experience.




What’s next for vehicle subscription services?

The convergence of cost-conscious consumers, EV adoption,  and a proliferation of connected technologies is a catalyst for transformation—one that may unlock significant opportunities for well-positioned automotive sector leaders. While early attempts at car subscription models may have proven largely unsuccessful, a next-gen approach that recognizes the need for flexible, affordable alternatives to personal car ownership may find opportunities for growth amidst prolonged economic uncertainty and the global push for decarbonization.

For more information on Deloitte’s vehicle subscription offerings, click here.

i Deloitte, 2023 Global Automotive Consumer Study, January 2023.

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