Car Subscription Market Faces Challenges and Adaptations in 2024

The first half of 2024 was marked by important moves in the vehicle subscription market, which has been consolidating itself as a viable and attractive alternative for those seeking convenience and flexibility in the possession of a car. According to Milton, CEO of byecar, these changes reflect both the fluctuations in the strategies of the rental companies and the new demands of consumers.

Growth and Challenges in the Subscription Market

After a promising start to the year, with record sales and a heated market, the industry faced unexpected challenges. One of the main turning points was the change in the credit approval criteria by the 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 forms of payment, such as boleto and Pix, resulted in a significant increase in default.

According to data from byecar, the credit approval rate went from 33% in the third quarter of 2023 to 54% in the first quarter of 2024. However, the high default forced lessors to review their policies, returning to stricter credit criteria and reevaluating the payment options offered.

Changes in Contract Offerings

Another trend observed was the change in the durations of subscription contracts. Traditionally focused on long-term contracts, rental companies began to encourage shorter plans, between 12 and 24 months, to meet a new customer profile. This change aims to attract first-time subscribers, who prefer to test the model before committing to a longer contract.

Milton points out that this flexibility in the plans reflects an adaptation of the rental companies to the needs of consumers, who are increasingly seeking customization 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 attractive”, he says.

Prospects for the Second Semester 

With the arrival of the 2025 vehicle models in the second half, the subscription market should continue to evolve. The expectation is that new technologies and innovations, such as more affordable hybrid and electric vehicles, will 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, which is now preparing for a promising second half.For those who want to know more about the trends and challenges of the sector, byecar provides a complete video in the YouTube.