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Thursday, 29 October 2020 19:44

Scott Painter Announces Vehicle Subscription Platform NextCar (NXCR)

Scott Painter Scott Painter

Index

Automotive retail innovator Scott Painter---a founder of Fair.com, TrueCar and CarsDirect---on Oct. 29 announced a new venture, NextCar Holding Company (NXCR.)

NXCR was launched in response to COVID-19 and the heightened relevance and expected demand for a Car-as-a-Service (CaaS) mobility model for consumers.

 

"Vehicle subscription is an antidote to the affordability concerns and economic uncertainty faced by today's car shopper. It was an attractive value proposition for consumers before the pandemic, as evidenced by over 3.5 million downloads of the Fair app within its first 24 months, and it is even more compelling today," said Painter.

Vehicle subscription allows consumers to pay a monthly usage fee for a flexible term, eliminating the long-term commitment of a traditional loan or lease. Subscription services bundle insurance, maintenance and other vehicle operating costs into a single, affordable monthly payment.

 

"Mobility needs haven't changed drastically since the pandemic; what has changed is the immediate need for a fully digital, low commitment and affordable mobility option that can be completed entirely on a mobile device," added Painter. "Vehicle subscription satisfies all of these needs and NextCar is committed to bringing to market a platform for vehicle subscription that enables it to thrive."

 

According to a recent Mckinsey study, "The New Realities of Premium Mobility," 20% of the automotive retail market is forecast to be used for car sharing driven primarily by subscriptions and autonomous taxis by 2025.

 

The exploding Battery Electric Vehicle (BEVs) market and transition to autonomous/connected cars will lead that transformation. When it comes to BEVs, 50% of consumers surveyed preferred a subscription model over traditional vehicle ownership, according to a January 2020 Capgemin report.

 

In the U.S., there are 18 models and nine brands currently selling BEVs. With steep OEM investments in BEVs and new brand entrants, more than 133 models are expected by 2026, according to an IHS market forecast of Electric Vehicle sales. BEV manufacturers, including Fisker and Canoo, have already indicated that subscription will be either the only or primary billing model.


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