Another name has joined the growing market for car subscription – with new operation Blinker pitching for car dealer and distributors business.
Rather than being its own service, Blinker offers a ‘software-as-a-service’ option for those in the business of selling cars to offer their own service.
Blinker co-founder Michael Higgins says subscription services could be big business for car dealerships.
“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,” Higgins says. “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.”
For dealers, Blimker claims 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. They provides the software, training and services for dealerships to offer subscriptions to customers. 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,” Higgins notes.
“The Blinker platform enables car sellers to capitalise on this opportunity, offering a service more aligned with changing consumer purchasing habits.”
Car dealerships can subscribe their existing vehicle inventory to customers for a recurring weekly payment. The system 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.
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.
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.
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