The recent decision of Cazoo to exit the subscription market and to concentrate on their core business is undoubtedly having a positive impact on our new customer order take.
Duncan Chumley, CEO of Mycardirect
DUNCAN Chumley, boss of car subscription provider Mycardirect, is taking a bullish view on 2023, expecting income to double in 2023 with the company crosshairs fixed on those car subscribers exiting Cazoo’s closed subscriptions business.
Part of the AAM Group, Duncan is forecasting revenues to double to £15m in 2023. With the winding down of Cazoo’s subscription business with its circa 3000 subscribers, he says there’s a real opportunity.
“It depends on the vehicle you are looking for,” says Duncan. “Cazoo did have some market leading rates, but we have a range of products with a price range of £470 a month up to £10K for a Ferrari we have on subscription.”
Duncan says the expansion of the business will see the Mycardirect fleet increase to 2000 vehicles, giving the AAM Group a total fleet size in excess of 4000 vehicles, which would place it within touching distance of the FN50 top 30.
Electric and hybrid vehicles also boosting demand
However, Mycardirect says it’s not just ex-Cazoo car subscribers that will give it a boost, but consumers and businesses either looking to try out electrification or wanting the flexibility in an uncertain economy.
Duncan says that hybrids and EVs account for 65% of initial enquiries. He added:
“While the cost of living crisis continues to cause uncertainty for business and retail customers alike, the unique flexibility of vehicle subscription provides reassurance to customers. It allows a customer to cancel or change a vehicle mid contract with no long term contract lock-in.
“This flexibility also explains the significant growth in EVs within the fleet. Customers are choosing them in the confidence that they can switch to a more traditional petrol or diesel vehicle if an EV does not suit their needs. Or, they can simply cancel the contract. This flexibility gives consumers confidence and is certainly encouraging early adoption of EVs.”
Duncan added that the company’s strong position in organic growth, and the new opportunities presented by 2023 will be “positive for significant growth”.
Broker News Newsletter 30 April 2024
Catch up on the latest leasing broker news in the 30 April 2024 Broker News newsletter
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
