Subscriptions can be plus for dealers, panelists say

DETROIT — As more dealers try their hand at vehicle subscriptions, Mobiliti CEO Chance Richie urges them to think of a subscription as a standalone profit center rather than a lead generator for other revenue streams.

“We take a lot of pride in helping our dealer partners make sure they’re making money every month on the subscription,” Richie said during a panel discussion here.

The Automotive Press Association hosted the panel Tuesday to explore the business and consumer benefits of subscription services and the rising demand for an alternative to traditional vehicle ownership.

Mobiliti, an app-based subscription service headquartered in Detroit, loops dealers into the subscription service realm and provides fleet service financing through its partnership with Ally Financial.

The company has 25 employees, about 100 dealer partners and 1,000 users. Mobiliti’s monthly subscription fees range from $550 to $1,200 and cover insurance, maintenance and roadside assistance.

Building subscription pricing models around depreciation characteristics, the biggest driver of subscription costs, will produce positive selling experiences for dealers once vehicles are done being used for the service, according to Richie.

“By and large, it’s going to be driven by vehicles that have the shallowest depreciation,” Richie said. “It’s Jeep Wranglers, it’s Toyota, it’s small SUVs — those are generally the things that work really well.”



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