Nowadays, you no longer need your own car – you can also subscribe to it. Although we are extremely attached to the idea of a private car, the new concept of mobility is already knocking on people’s doors both in neighboring countries and here.
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Internet shopping, which flourished during the pandemic, reduces the need to go to the store, cities are full of cars and stop in traffic jams, the lack of parking spaces is an issue, and people also want to spend less and take care of the environment more. For these and many other reasons, car subscription has turned from an incredible idea into a real service in more than one European country. It is gradually taking root not only in Latvia, but also in our neighboring country Lithuania, and now it is possible to subscribe to both economy and luxury class cars.
Jaguar Land Rover has launched the Pivotal project, a service that allows you to rent new Land Rover and Jaguar models directly from the manufacturer in England on a monthly basis. In addition, it is offered to both businesses and private customers. The manufacturer covers all taxes and insurance payments, delivers the vehicle to the customer’s location and allows cancellation of the subscription after three months, as needs tend to change in a person’s life. Every six months (or more often, but for an additional fee), the customer can exchange the machine for a newer one or simply choose another model from the manufacturer’s warehouse. The price of the service also includes constant car maintenance and 24/7 roadside assistance. In Lithuania, the range of “MyBee” will soon be supplemented by the latest “Jaguar Land Rover” models.
Peace of mind is definitely more expensive than rent
Speaking about the prospects of such mobility, “Kursors.lv” expert Māris Gaugers says that no one doubts the need for car subscriptions and short-term rentals anymore. People themselves show that they like this format. “Furthermore, if the prices of new cars continue to grow as rapidly as they have in the last couple of years, then they may become unaffordable for a significant part of people. And then renting or subscribing will be the best way to get a car,” explains Māris.
The example of “Jaguar Land Rover” shows that this is a more convenient and affordable option for people than leasing a luxury car for several years. They can compare various costs – leasing and rental fees, insurance, maintenance and resale value. “Perhaps the lease will be more expensive, but the amount will be fixed and will allow you not to worry about possible daily problems. It might be most suitable for people who are used to changing machines periodically – for them, the subscription will probably be an excellent solution with simple process administration,” thinks the journalist.
“Delfi Auto” editor Raimonds Zandovskis points out that such a business model could be unusual for that part of the society for whom a car is not only a means of transportation, but also a status statement. However, a new generation has grown up and their preferences have shaped new services, so the demand for sharing platforms is increasing. Younger people often use such services also because they are not attached to things and avoid potential concerns.
Auto subscription can be compared to what mobile operators and some smartphone dealers have been offering for several years – a fixed monthly fee and the possibility to exchange the rented smartphone for the latest model as soon as it is released. The same with cars – it would be nice to replace the existing car with a new one, instead of paying for the “old” one for a few more years.
“You don’t have to think about the classic items of operating costs – buying tires, changing oil, technical inspection and other things. If we look at it from the point of view of convenience, then subscription is much more convenient than simply buying a car. Even a higher price is a controversial issue, because people who buy luxury models, pay for convenience. Therefore, perhaps those who can afford it will choose to pay more,” says Raimonds Zandovskis.
Benefit – decongested cities
Manufacturers and companies that offer car rentals or subscriptions remind us that an important sustainability factor is to use a thing or service only when it is really needed. In addition, industry representatives actively promote less polluting vehicles. Therefore, for example, Jaguar Land Rover’s “Pivotal” project, in addition to traditional internal combustion engines, also offers a wide selection of “plug-in” or plug-in hybrids – “Range Rover”, “Range Rover Sport”, “Range Rover Evoque”, “Land Rover Discovery Sport”, as well as the fully electric “Jaguar I-Pace”.
Different rental offers will not be able to satisfy the needs of all people, as situations tend to be different, but in the long term, new concepts can contribute to a much smoother mobility. Judging by the fact that, statistically, personal cars are just parked more than 90% of the time, while public transport is rarely idle, it can be assumed that the new rental services could reduce the number of cars in cities.
“At the moment, we are in a period of change. Young people cannot or simply do not want their own car, but in some situations they cannot live without it. In such moments, shared cars and other similar options come to the rescue,” says Māris Gaugers.
Short-term rentals are more suitable for those living in larger cities. People who live in the suburbs or in the countryside need different kinds of solutions. “But various rental platforms are already expanding beyond Riga, so it’s only a matter of time when they will be available to an even wider circle of people,” says Māris.
Raimonds Zandovskis believes that in big cities, car rental will become more popular than private cars due to a number of hard-to-solve problems: lack of parking spaces, their high price, as well as an increase in taxes. Also, it is likely that cities concerned with nature protection and CO2 reduction will restrict the movement of machines and make their use more expensive.
“I don’t think that the current car trade will disappear completely. I have not observed such a trend so far. But the number of subscriptions will increase, it is true, it is a long-term process. And as long as cars will be sold at all, they will also be bought,” Raimonds is sure.
