Millennials are a subscription generation. Subscription services across all models have grown significantly in both Australia and around the globe in recent years. Survey after survey continually show that millennials just don’t put car ownership as high on their priority list as previous generations. Millennials now more than ever in these uncertain times are driving the demand for ownerless products. According to Loopit which is Australia's leading subscription software provider, car subscription in particular is growing rapidly to become a 1.6 billion dollar industry by 2026.
Simply put, a car subscription gives you the benefits of owning a car, with none of the long term commitment & hassle associated with ownership. One simple payment each week and everything to do with the vehicle is taken care of. Think fully comprehensive insurance, roadside assistance, all service & maintenance (including tyre & battery replacement when needed), & registration costs. The only thing you need to take care of is fuel & toll usage.
The beauty of car subscription is the sheer flexibility of it all. After your initial minimum 2 or 3 month term, you aren’t locked into a contract and have the flexibility to swap into different vehicles as your needs change. Family coming to visit and need a bigger SUV for a while? No problem! Moving overseas – simply hand your subscription vehicle back!
FOMO? Millennials are very much ingrained in the “Fear Of Missing Out” mindset. Imagine how this would translate to purchasing a car. You lay down your hard earned, then 6 months later the MUCH better updated model comes out. Suddenly your car is less relevant, a little dated. With a subscription service, you can have the latest and greatest – ALL the time!
The recent research conducted by Loopit showed the clear trend for the younger generation away from traditional Car Ownership to more flexible alternatives such as subscription. According to the research 68% of young people would consider subscribing to their next car compared to just 46% of older respondents.
So do Millennials really want to get locked into a car purchase? Studies show that Millennials are much more conscious of making large capital purchases than previous generations. Weighed down with student debt, and an appetite for experiences over ownership, more and more are turning to alternatives to ownership. Given that purchasing a car ties you down & leaves you open to hidden fees and unexpected repairs and maintenance bills, it’s any wonder the younger generation are looking at alternatives like Motopool’s car subscription service.