Norwegian used car dealership launches car subscription0
by Jordan Symmonds on 18.10.22
Last updated at 21.10.22 11:43 AM
The used car dealership K Bil, which specializes in EVs had a record-breaking year in 2021, but due to the announced VAT introduction on electric cars and the lack of cars in general, they had to think differently about the coming years. One of the solutions was to turn their used car fleet into a subscription service.
“We have the capacity to sell 500 cars a year and rent out 200 cars,” K Bil manager Magnus Groseth says to BilNytt after launching a car subscription service in collaboration with Casi, previously imove tech.
Together with car-sales platform Finn.no and Casi, K Bil started their car subscription service K Bil Move. This was not something Groseth had planned until 2024, but a combination of today's market conditions and a firm belief in the future of car subscription, made him speed up the process.
“We got invited by Finn.no to partake in setting up a subscription service, the technology is already in place by Casi, so I thought this is something we must get involved with. I really have faith in the concept,” says Groseth.
Groseth says that he had a meeting with Finn.no at the beginning of May, and that they had the subscription service up and running in less than 30 days. The plan is for K Bil Move to have a fleet of 200 subscription cars.
“Everyone out there struggles with the same thing, namely, to get hold of enough used cars. If I can generate cash flow from my own used cars in my own house, it's really a no-brainer,” he says.
K Bil uses Casi's car subscription platform as a used car generator and intends to offer other innovative concepts as well. Subscription is a great way for customers to test drive the vehicle they're considering for a longer time than just a cruise around the neighborhood. By test-driving a car for a few months on a subscription, customers feel more confident in their eventual purchase, and the dealership introduces a supplementary revenue stream.
Other concepts enabled by car subscription include a "waiting car;" The dealership sells a vehicle, and then while the customer waits for the car to be delivered, they have a car subscription. This generates cash flow for the dealership, and customers get to drive off the lot happy.
Car subscription allows dealers to sell cars at the optimal time within the car life cycle, sell multiple cars, target a new and younger customer segment, and ultimately introduce new revenue streams. For innovative and forward-leaning dealerships, car subscription is a key to future success.