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The Car Subscription Industry: Achievements and Challenges
The rising tide of subscription business models is perhaps no more apparent than in the auto industry. Subscription-fueled disruption has created opportunities for start-up companies to sell car rentals by the hour through online platforms or for dealerships and automakers to restructure into a modern business and diversify revenue streams.
The car subscription industry is not perfect. While it enjoys lasting achievements that mark its customers, it also conquers challenges that wobble its reputation in the automotive world.
What are the challenges, and what does the automotive subscription industry do to keep up?
It has been said that the business program, such as the subscriptions model, is the new way to entice customers to products and services. Among the most popular would be subscribing to streaming platforms like Netflix and other online content programs, giving consumers access to various television series and movies. This gallery of shows can be accessed in one payment instead of going to cinemas several days of the year to watch movies or purchasing copies of the television shows.
The subscription-based model has laid the foundation for many businesses and products to follow suit, including car and driver subscriptions.
Car subscriptions are simple. Customers become subscribers by paying a recurring fee to use a fleet of cars that the companies offer. They have access to tons of amazing perks, including a concierge priority service that will be with them every step of the way. Gone are the days of countless hours and stress obtaining cars like luxury and electric vehicles. There are no longer waiting times at DMV lines, no more insurance hassles, no more financing obstacles, or even tracking multiple payment due dates and endless paperwork.
With subscriptions like this, car enthusiasts can regularly choose when and where they want to drive these cars. T4L offers its members access to Tesla electric vehicles. When you become a T4L Member Subscriber, you have the opportunity to subscribe to a Model S, Tesla Model Y, Tesla Model X, and Tesla Model 3. Isn’t it amazing?
Achievements and milestones
The car service subscription industry is in an upward trajectory. In fact, the companies involved in this business model unlock achievements that conventional car dealerships have not. It can be said that the two different business models -- a traditional way of purchasing cars and subscriptions -- are even competing against one another.
By 2024, car subscriptions are predicted to expand to $9.15 billion with a projected 63 percent compound annual growth rate or CAGR. In 2022, a 2019 research from Ipsos says that the car subscription market will grow by a massive 71 percent.
The interest in the subscription industry is growing consistently. Among the highlighted markets are millennials, with the age group drawn most to the “subscription lifestyle.” They found that the lifestyle they are looking for is also in cars. The research further revealed that there is 17 percent saying they are signing up in 2020.
What attracts the market to a car subscription model?
The ability to choose subscription automobiles for specific purposes. Like browsing through preview cover images of their favorite movies and television series, subscribing to cars allows them to choose what they want to drive in a particular season. Interestingly, women are attracted to the concierge and delivery services feature, while men are drawn to the concept of not arranging the insurance themselves.
Challenges encountered
The achievements are overwhelming, and it makes you want to go out there and select the car subscription company where you will get the car you want and subscribe. However, this is not to say that the entire industry is perfect. There are also plenty of challenges.
The subscription business model is relatively new. The car subscription just started recently. While investors and capitalists gambled earlier, the current state of finances in car subscription start-ups is generally not satisfactory. Therefore, there is a need for more financing. We talked about a booming industry, but this is more on its more extensive scale.
They also battle with the cons or the disadvantages hurled at the industry. Among these are high maintenance for the cars, mileage cap, and inability to carry out modifications with the vehicle, since it is the right to use the car, not to own it. Thus, there is a need for support to captivate the market accurately. For Jaclyn Trop, former contributor at Forbes, they also have to compete with long-time automakers that cannot say the conventional dealership is passé because they have remained running in the industry for many years with the traditional way of selling the cars.
Fueling the solution
Considering the changing behaviors across the market and the consumers, car subscription services have succeeded in identifying the intersection between changing car ownership to car usership, the rapid conversion to electric vehicles, the digitization of users with mobile, the increasing groups of people wanting to contribute to a better planet, and the success of the client first services models.
The question of how this solution can run through without fuel to propel it forward persists. That is why vehicle subscription companies are devising strategies to finance the business. One of these is with a crowdfunding campaign, which is perhaps an easy way of saying, “we need financial support.”
Via a crowdfunding campaign, these businesses can call for investors and anyone interested to invest and chip-in to support their run-in in exchange for perks and opportunities that all who donate can get.
Today, some campaigns put up pages on crowdfunding websites detailing perks that include recurring revenue, freebies, memorabilia, earning returns, subscription and membership privileges, and so much more. They also offer investment through a Future Equity Agreement.
T4L is one of the companies that offer an all-inclusive membership subscription to an electric vehicle such as Tesla. The membership includes insurance, taxes and registration, vehicle swap, maintenance covering tires, brakes, batteries, wiper blades, vehicle refresh and software updates, charging, roadside service support and concierge priority service.
T4L has also launched their equity crowdfunding campaign on WeFunder.com
Here's How To Invest In T4L:
T4L is positioned to take advantage of the growing market and enthusiasm for electric vehicles and the subscription model as it provides innovation and business-know-how to grow the business.
1. Visit https://wefunder.com/t4l
2. Fill out the investment amount and click Invest.
3. Create an account on WeFunder.com and continue with the next steps
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An opportunity to invest in T4L and become a T4L Member Subscriber!