The first half of 2024 was marked by significant movements in the vehicle subscription market, that has been consolidating as a viable and attractive alternative for those seeking convenience and flexibility in car ownership. According to Milton, CEO of byecar, these changes reflect both the fluctuations in the strategies of rental companies and the new demands of consumers
Growth and Challenges in the Subscription Market
After a promising start to the year, with sales records and a heated market, the sector faced unexpected challenges. One of the main turning points was the change in the credit approval criteria by rental companies. At the end of 2023, the rental companies began to loosen the approval rules to attract previously rejected customers. This strategy, combined with the introduction of new payment methods, like boleto and Pix, resulted in a significant increase in delinquency
According to data from byecar, the credit approval rate increased from 33% in the third quarter of 2023 to 54% in the first quarter of 2024. However, the high default rate forced rental companies to review their policies, returning to stricter credit criteria and reassessing the payment options offered
Changes in Contract Offers
Another trend observed was the change in the durations of subscription contracts. Traditionally focused on long-term contracts, the rental companies started to encourage shorter plans, between 12 and 24 months, to meet a new customer profile. This change aims to attract first-time subscribers, that prefer to test the model before committing to a longer contract
Milton highlights that this flexibility in plans reflects a rental companies' adaptation to consumers' needs, that increasingly seek personalization and options that align with their lifestyle. This change offers an opportunity for more people to experience the subscription model, making it more accessible and appealing, affirms
Perspectives for the Second Half of the Year
With the arrival of the 2025 vehicle models in the second half, the subscription market is expected to continue evolving. The expectation is that new technologies and innovations, how more affordable hybrid and electric vehicles, become protagonists, attracting consumers who seek not only practicality, but also sustainability.
The vehicle subscription market is constantly evolving, adapting to new economic realities and consumer demands. The first half of 2024 brought important lessons for the sector, that is now preparing for a promising second semester. For those who want to know more about the trends and challenges of the sector, a byecar provides a complete video on theYouTube.
