Subscription services could soften used EV price pressure

Price pressure on used electric vehicles (EVs) for leasing companies could be avoided by introducing a subscription service for returning stock.   

Vehicle subscription provider Wagonex claims it is an easy, hassle-free option for funders to create revenue from their returning EV stock. 

Wagonex’s head of commercial, Sam Sutherland, explained: “We appreciate that this is a challenge for leasing companies and funders at the moment.

“There is a need to seek an alternative solution for these 2-3 year old EVs due to significant revenue loss that might occur if they were to follow their normal resale channels.

“We believe that subscription is the answer, and with seven years of experience in subscription, we are well-equipped to help companies to enter the market with minimal disruption and resources.”

He added: “It really is a no brainer for those lease companies and funders who find themselves with nearly new EVs returning and no way of monetising those vehicles.”

“With more second hand EVs expected to come into the market in the coming years, getting a subscription solution up and running now, will help leasing companies and funders to gain that necessary additional channel for maximum vehicle utilisation,” he continued.

“Additionally, they will provide their customers with an alternative car ownership option, establishing themselves as innovators within the market.”

Based in Cardiff and founded in 2016, Wagonex specialises in building, launching, and growing vehicle subscription platforms for vehicle manufacturers and retailers.