According to Deloitte’s 2024 Global Automotive Consumer Study, economic uncertainty has driven young people aged 18–34 across the globe to show a growing preference for vehicle subscription models over traditional car ownership. This trend is particularly prominent in India (67% of respondents), China (48%), and the United States (28%). Those interested in subscription plans cited the desire for a predictable cost structure, reliable vehicle availability, and overall convenience.

A vehicle subscription model is a relatively new way of using and accessing vehicles that provides an alternative to traditional car ownership or leasing. Some of the features include:

• Subscribers can often switch between different types of vehicles based on their needs (e.g., a sedan for daily commuting, an SUV for a weekend trip, etc.).
• The subscription fee typically includes various costs associated with car ownership, such as insurance, maintenance, repairs, and roadside assistance. This eliminates many of the unpredictable costs tied to owning or leasing a vehicle.
• Unlike traditional leases or financing plans, vehicle subscriptions usually offer shorter commitment periods (monthly or quarterly). This can be appealing for individuals who prefer not to be tied down to a long-term contract.
• Many vehicle subscription services offer a streamlined, digital-first experience. The process of subscribing, switching vehicles, and managing the subscription is often handled through an app or online portal.
• Subscribers can choose from a wide range of vehicles within the subscription plan. This can be particularly advantageous for people who like driving different types of cars or who want to try out a vehicle before committing to a traditional purchase or lease.
• The subscription service provider handles all administrative tasks like registration, insurance, and maintenance, allowing subscribers to focus purely on driving.

Vehicle subscription models are offered by various entities, including traditional automakers, rental car companies, and startups that specialize in this service. Examples of such services include Care by Volvo, Porsche Drive, and programs from rental companies like Enterprise and Hertz.

This model can be particularly attractive to urban dwellers, people who frequently relocate, or anyone looking for maximum convenience and flexibility in their vehicle usage. However, it’s important for potential subscribers to carefully review the terms and conditions, as the inclusions and exclusions can vary significantly between providers.

Across all age groups, the trend towards online vehicle sales and research is accelerating. Automotive research firm IMARC reported that online car sales in the United States reached 326billion in 2023, with projections expecting to grow to754.2 billion by 2032, reflecting a compound annual growth rate (CAGR) of 9.6% from 2024 to 2032. Additionally, Cox Automotive’s 2022 Car Buyer Journey Study revealed that 80% of respondents were open to purchasing a car entirely online, an increase from 76% in 2020.