Australia has a new car subscription service called Blinker. What is a growing industry, the Software-as-a-Service (SaaS) platform offers car dealerships, resellers, and manufacturers among other Blinker customers, to offer their own vehicle subscription services to customers.
The car subscription market is exploding globally as people rethink how we look at vehicle ownership. A report from Frost & Sullivan suggests that by 2025, 10 percent of all new vehicle sales in Europe and the US will be subscription-based, representing a business opportunity worth US$100 billion.
“With over 1.15 million cars sold in Australia in 2018, we can expect car subscription models to be a multi-million if not billion-dollar opportunity for local car dealerships. In a market where we see car sales declining, the Blinker subscription platform can unlock new opportunities for dealerships.
Not only will Blinker improve the customer experience but it can also help to boost revenue by up to 50 per cent, helping them take the lead in a market that will be worth billions of dollars in Australia alone.”Michael Higgins, co-founder of Blinker
Car subscription is still relatively new in Australia. It provides a flexible, affordable alternative to traditional car ownership, leasing or long-term rental. Through an affordable weekly payment, customers can choose a car and plan that suits their needs, with the ability to swap and return cars as their needs change.
Inside the dealership, Blinker car subscription supports traditional dealership revenue channels by offering an alternate path to purchase, an extended test drive opportunity and a means to service customers that may not be suitable for finance.
Blinker’s end-to-end car subscription platform provides the software, training and services for dealerships to offer subscriptions to customers simply and easily. This will allow dealerships to service more customers and monetise existing vehicle inventory in new ways, whilst reducing costs, delivering an immediate return on investment.
“Low consumer confidence and tighter lending conditions post-Royal Commission has put a dampener on car sales in Australia. As a result, Aussies are increasingly looking for alternatives to traditional car ownership.
The Blinker platform enables car sellers to capitalise on this opportunity, offering a service more aligned with changing consumer purchasing habits.”Michael Higgins, co-founder of Blinker
How it works
Car dealerships can subscribe their existing vehicle inventory to customers for an affordable recurring weekly payment. Blinker’s bespoke algorithm calculates the most cost-effective subscription model, based on the vehicle information, which includes the costs of registration, insurance, servicing, maintenance, roadside assistance and depreciation.
The platform also incorporates training, robust serviceability, authentication and risk management processes. This makes it a risk-free investment for dealerships, ensuring they are protected against fraud or defaults, while meeting compliance and customer requirements.
Currently, there is no upfront cost associated with the implementation of the platform, with Blinker taking a small percentage of each subscription. Higgins believes the platform will not only address changing consumer purchasing habits but also complement existing revenue models.
With Blinker, dealerships get an end-to-end car subscription platform that will enable them to capitalise on this shift and develop new revenue models in an extremely cost-effective manner.
From long-term test drives and subscribe now, buy later, to the ability to monetise aged stock and offer new financial models, Blinker will complement and support their existing revenue streams.Michael Higgins, co-founder of Blinker
Blinker will be showcasing its new software platform at Stand 4 at the 2019 National Dealer Convention and Expo on 9 – 11th September, in Melbourne.
For more information please visit www.blinker.com.au.