Carvolution CEO Olivier Kofler: “Many people are switching from leasing to car subscription”

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Olivier Kofler, what is the advantage of a car subscription?

Olivier Kofler, Carvolution CEO: According to our customers, the answer is relatively simple: You pay less for your car and get better service overall, all from a single source. Clearly calculable costs, minimal effort, a wide range of cars from various brands and – in many cases most importantly – a friendly and well-positioned team that is always there with advice and support.

Which subscription car does the CEO of Carvolution drive?

Currently a Tesla Model Y from Carvolution. I am impressed with the price-performance ratio and the car offers enough space for my young family. I previously drove a Škoda Octavia.

So how often do you change vehicles?

I change my car on average every two years. I don’t drive very often, my wife does. Because in daily life I usually travel by train and I only use the car on weekends. I still want to try different brands myself.

Have you recently taken a bold step with a best price guarantee?

Brave? (Laughs.) Not at all, because the total cost of a car subscription is actually practically always cheaper than the cost of a similar rental. It’s nice to see how our customers understand our product better by comparing the total vehicle cost and then see the price advantage step by step.

What is the secret of Carvolution, why are the prices so attractive? This seems counterintuitive at first glance.

There are many factors that have a positive impact on low prices: Our purchase prices are low due to large quantities. We rely on lean, data-driven and highly digitized processes and do not require expensive showrooms. Thanks to our close cooperation with our Swiss garage partners, we achieve high residual values ​​for the vehicles.

What else makes your service different?

Personally, I am extremely proud to see how Carvolution and the entire team have developed. This is where an important part of our service comes into play: It is important that people can get a vehicle subscription from us easily, flexibly and cheaply. We don’t just want to sell cars, we want to have satisfied customers. To achieve this, the team is preparing to go further every day.

Carvolution launched its car subscription five years ago. Why do you still have to explain the subscription?

This is the difficulty in accurately estimating total costs. Many people underestimate the true cost of a vehicle. A car costs more than its purchase price or lease rate. Insurance, taxes, repairs, service, new tires, tire changes, etc. is also included. Everything is included in the Carvolution subscription.

How does price comparison work?

I even encounter people in my circle of friends who compare their rental prices with our subscription prices. In cases like these, I invite you to grab the lease, insurance bill, and most recent garage bills and recalculate carefully. If several thousand francs were paid initially, it is immediately clear why the rental fee was lower than the subscription fee. For example, if someone signed a lease for three years and made a down payment of 4,500 francs, the down payment alone would amount to 125 francs per month.

If you want to fairly compare vehicle subscription and total costs, you should include all ongoing costs. In addition to the best price guarantee, we also offer individual total cost comparison. This can be easily requested from our website. Using the example of the Audi A1 Sportback 30 TFSI, you can see that car subscription has an advantage of 217 francs per month over leasing.

Will subscription replace rental or purchase?

The results of various studies show that vehicle subscriptions will account for 40 percent of newly registered vehicles in the future. This development is mainly due to the fact that people are willing to use pre-configured cars, but in return benefit from lower costs, greater flexibility and an all-in-one price. The tense economic situation is likely to further accelerate this trend, as households currently want to take less financial risk and do not want to have high purchase costs if possible.

How does the automobile industry perceive Carvolution?

Overall very positive. We work with more than 1,000 Swiss suppliers, whether garages, body shops or tire partners. It took a while for the industry to get excited about car subscriptions and Carvolution. But today most of the worries and fears have disappeared. Our partners see the benefits and the collaboration creates added value for everyone involved.

Inflation is straining household budgets and the energy crisis is disrupting consumers. How does your customer react to this?

We are seeing contract lengths getting shorter because it gives people more flexibility. But we also often hear that people are very happy with the car subscription option, especially in these uncertain times. This way you can be mobile, you don’t need to make a big investment and you don’t need to take any financial risks. Buying a classic car, in particular, carries risks due to the uncertainty of residual values, i.e. the subsequent sale price.

Currently around half of all new registrations are equipped with alternative drives. What is the demand for such cars in Carvolution?

We’re just over 50 percent. There are even months when it reaches almost 60 percent. It currently depends largely on the delivery capabilities of all-electric vehicles.

How long will combustion cars be in Carvolution?

An exact date has not been determined yet. However, this is clear: In the medium and long term, internal combustion engines will disappear. However, for many households, the charging infrastructure issue needs to be clarified first.

Carvolution now offers more than 50 different vehicle models. What criteria are used to compile Carvolution’s offers?

Our offer is about having something for everyone. For new drivers, families, foreigners, companies and also retirees. So there are criteria such as price, location, luxury. Special attention is paid to sustainability and safety in all cars.

Which are the best sellers?

Audi Q2 has broken all records in the last few weeks. You can right now Audi Q2 starting from 449 francs per month This is, of course, an incredibly attractive price. But other compact SUVs, such as the Ford Puma, are also quite popular. They are family-oriented vehicles, but they are not very large. It really seems like a compromise between saving space and “not being too small”.

So which term is most in demand?

Most often, 36 months, 24 months or 6 months are chosen. The difference is mainly due to different needs. Some people start with 6 months and extend this period if they are satisfied with the car. We’re seeing the beginnings of a shorter subscription that’s being expanded primarily for electric cars.

Source: Blick