Data from mobility tech company Casi shows EU drivers subscribe to car access for longer periods

BERGEN, Norway - Jan. 9, 2024 - PRLog -- Norwegian car subscription technology company Casi has announced new data showing more people choose car subscriptions as a permanent mobility solution. The average subscription length has increased from 215 to 461 days. At the same time, the average monthly price has decreased from €540 to €519 per month, in line with expectations as drivers opt for longer commitments. The churn rate for car subscriptions has dropped from 17% in 2022 to 7.3% in 2023.

The data insights are based on master data from Casi's platform, containing more than 30,000 cars in European fleets. Casi's data shows a clear trend where consumers treat car subscriptions as a way of managing finances with flexibility and shorter contract periods. With a challenging economy and rising prices, many are looking for alternatives to the significant up-front cost of buying a car. They are exploring new options for more flexibility and less short-term financial risk.

"Global car sales have declined significantly in 2023, but our data shows that many have gone from ownership to flexible car access when faced with a tighter purse. I think the flexibility of having a car on subscription is a major factor in more people going down that route, and for longer periods than before," says Hans Kristian Aas, CEO of Casi.

Significant increases in subscription duration and lower churn rates also indicate that subscription services have become more appealing to the typical leasing customer, with longer access periods to the same car. With subscriptions traditionally viewed as a middle-ground between short-term rental and leasing, it is clear that increased financial pressure has led to more people edging on flexibility, even for their long-term mobility needs.

"The leasing market has boomed in many markets over the last couple of years, and it's fascinating to see how people use car subscriptions, which is getting more similar to how leasing works. It is clear that even though many are willing to commit to three-or-more year leasing contracts to avoid buying a car, many also want more flexibility than what traditional leasing products have been able to provide", Aas continues.

The data shows longer average subscription terms, but there are clear high- and low seasons for car subscriptions. By far, the most popular month for new subscriptions is June, followed by July, suggesting people start to consider their mobility before the holiday season. Conversely, the low season is the winter months of December and January, with less than half the volume of the summer high season.

For more information, visit https://casi.auto/