Audi and BMW recently pumped the brakes on their subscription programs. Our CEO Brian Bogosian said the shift is just a bump in the road for vehicle subscriptions.
“I think people will see significant uptake for car subscriptions and some brands will be very successful with this kind of model,” Bogosian told PYMNTS.com during an interview.
Bogosian expects a big opportunity for automotive brands that offer three-to-five-year subscriptions with a range of price points. “It comes down to what you're providing to consumers, and whether it’s compelling or not,” he added.
While Audi and BMW are calling it quits on subscriptions for now, other programs such as Care by Volvo continue to cruise. Calling it “the modern way to lease a car,” Volvo starts subscriptions at $650 a month, compared to thousands of dollars for Audi and BMW’s programs.
Bogosian anticipates other mass-market brands will rev their subscription engines in the future, but noted the vehicles need to be better connected to the outside world (like smartphones or tablets) for a frictionless experience.
Read the full PYMNTS.com article here.