Car Sector Analysis: How to make Dealer Network Subscription Models profitable

Tesla Car
Will Astbury
by Will Astbury 2 July 2018

Car subscription models are transforming the automotive sector and now some customers can drive around in several different premium vehicles a month, with no need to switch insurance or other documentation. But how? Matthew Morris is on a mission to find out…

Matt, a consultant with Crimson’s IT recruitment agency, has account managed two of Crimson’s major global automotive clients and is passionate about new innovative technologies and business models in the car industry and its connected sectors.

Over recent months, Matt has penned several articles about car subscription models, in which he has discussed how they are disrupting the sector, changing views on car ownership, the technology being used to make them a reality, and why the automotive giants are embracing the idea of ‘Cars as a Service’ (CaaS).

In his latest article, Matt has interviewed Erik Day, Chief Financial Officer for Warren Henry Automotive Group in the Miami/Fort Lauderdale Area. Warren Henry is a 400+ employee and $600m revenue holding company consisting of 13 automotive franchises and other vertically integrated businesses.

Click here to read their discussion about Warren Henry’s latest subsidiary brand ‘FlexWheels’, an organisation which enables customers, through its Dealer-Network Subscription Model (DSM), to change cars up to three times per month, with insurance and maintenance included. This model gives FlexWheels’s customers access to a range of brands, including; Audi, BMW, and Cadillac.

Matt askes Erik how DSM differs from the Manufacturer Subscription Model (MSM), why DSM is a profitable CaaS model, whether CaaS will become an affordable service to mass markets in coming years, and what the future for DSM holds.

Click here to read Matt’s latest article, and to find links to his other articles on this topic.

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Topics: Automotive, CaaS