The subscription business model has risen in popularity in recent years. It is perhaps most prevalent in the media industry, in the form of products such as Spotify, Deezer, Apple Music, YouTube Music, etc. However, the model can extend to many other industries and products – such as rent-to-buy cars!
The rise of subscription models
The subscription model is nothing new. It has been around for a very long time in the print media industry, where consumers would purchase subscriptions to newspapers and magazines. It then extended into the world of television in the form of paid cable and satellite TV subscriptions. The rise of online media provided even more opportunities for subscriptions, and now almost everyone you meet has one or more subscriptions to some or other streaming service. However, the model is not limited to the media sector. It works just as well in other areas – yes, even in the automotive industry!
Why subscription models work
Subscription businesses involve selling a product focusing on collecting recurring revenue, rather than making one-off sales. The emphasis is on customer retention instead of customer acquisition. From the customer’s point of view, the main benefit is convenience and affordability. Instead of making a single purchase upfront, you pay monthly amounts that can easily be accommodated in your budget. You can then also benefit from ongoing service and potential upgrades to the product or service. The dual benefits of long-term customer retention and secure revenue, together with affordability and convenience, create a win-win for the benefit of both the customer and the service provider.
With rent-to-buy cars, you own the car at the end of the subscription
The rent-to-buy model is essentially a subscription service for motorists. There are several different car rental models in operation, but this particular one enables you, the customer, to become the owner of your rental car. You choose your car and agree to pay a monthly subscription to make use of it. You have the option to cancel your subscription and return the car if necessary. However, if you keep the car and continue to pay your rental fees for the prescribed period, the vehicle becomes yours.
Earn-a-Car specialises in providing quality rent-to-own cars. Our quality rent-to-buy cars offer the convenience and affordability of the subscription model, with the added benefit of making each customer the ultimate owner of their car. Contact us for more information.