It said the jump in available cars for the service was in response to demand as it said people were becoming “increasingly wary of taking on new debt in the wake of the pandemic.”
Loopit reported its stock data following predictions from Forbes magazine that car subscription will become one of the top global automotive trends for 2021.
The Forbes article on Top 10 Global Trends, citing subscription services, said that “highly flexible contract durations, vehicle commitments that could be as short as a Tinder date, and easy vehicle swapping will represent the upside for consumers but high subscription fees will prove a dampener.”
“In order for vehicle subscription to be successful, therefore, auto-makers will need to set in place a business model that covers not only the premium needs of the market, but also successfully offers affordable, price-sensitive variants that can be easily accessed by the mass market,” Forbes said.
Loopit, which started in 2019, is a subscription ownership management platform that allows dealers to run their own subscription programs with their own customers using their own stock. Loopit is now in every state and recently entered New Zealand.
The company said in a statement that its program allows consumers to subscribe to drive any car at their local dealership “for an affordable recurring payment”.
Loopit co-founder and managing director Michael Higgins said the growth was underpinned by a surge in consumer demand for car subscription.
“Those dealerships that have embraced the subscription model are now reaping the rewards with an influx of new customers,” he said.
“Our existing partners have recognised that being able to operate a subscription program efficiently and at scale is critical to success.
“Many OEM and dealership providers that attempt to launch their own internal solutions don’t anticipate the nuances of car subscription and the level of administration that is required. To succeed, they need an experienced partner with a purpose-built solution.”
Loopit’s subscription service is offered to dealers alongside the traditional dealerships’ sales and finance model.
“It allows existing car dealerships, car brands and other companies to offer car subscription through a lucrative recurring revenue business model,” Mr Higgins said.
“Vehicles range from budget models right up to electric cars and luxury models such as the Range Rover Sport.”
He said that most of Loopit’s revenue comes from established OEMs, car dealerships and emerging car subscription providers which pay a percentage of the value of each recurring subscription placed by customers, plus a fixed fee.
Mr Higgins said car subscription services such as HelloCars – the sister business to Loopit – have been increasing in popularity because of the pandemic and a need by consumers to find alternatives to car ownership.
By Neil Dowling