Car subscriptions up in Brazil, from owning to using
Car subscription offers in Brazil increased 16.4% from January to September, reaching more than 106,000 vehicles compared to 91,000 during the same period in 2021, according to a survey conducted by the Brazilian Association of Car Rental Companies ABLA.
The survey covers vehicles from car rental and leasing companies, but not automakers such as Toyota and Volkswagen which also offer subscription services.
Car subscription offerings are seen doubling over the mid-term and this is due to the transport and mobility behavioral change brought on by the COVID-19 pandemic, says ABLA President Marco Aurélio Nazaré, comparing the transition to the birth and growth of streaming video subscriptions during the pandemic.
This is a cultural change in Brazil which is moving toward using (subscription) and not having (ownership), and much of it is due to less headaches.
With car subscriptions, car users don’t have to worry about maintenance, tune ups, towing, insurance, tax, and documentation, all of which are usually included in the service. At the end of the contract – usually one to three years – the customer simply renews the vehicle.