The Economics of Car Subscriptions: A Win-Win for Consumers and OEMs
As the automotive industry evolves, we at AVVA Mobility are seeing subscription-based models emerge as a financially savvy alternative to traditional car ownership. Our platform is creating a win-win situation for both consumers and OEMs, addressing the changing preferences of younger generations while opening up new revenue streams for manufacturers.
The Hidden Costs of Car Ownership
Traditional car ownership comes with a myriad of hidden costs that can strain consumers' budgets. At Drive AVVA, the consumer arm of AVVA Mobility, we've reimagined this model to provide substantial savings:
Our members save $125 to $250+ per month, translating to $1,500 to $3,000+ annually in after-tax dollars.
We've achieved an average monthly member subscription payment of $899 compared to $1,097 for traditional ownership.
By bundling services, we've eliminated the need for consumers to research, price, and manage multiple aspects of their mobility needs.
Growing Interest in All-Inclusive Monthly Payments
The 2025 Deloitte Global Automotive Consumer Study reveals a significant shift in consumer preferences:
51% of US consumers are interested in making a single monthly payment covering all vehicle-related costs[1].
By 2035, private vehicle usage without ownership is estimated to comprise 38% of the US market[1].
This trend aligns perfectly with our subscription model, which offers a comprehensive, hassle-free mobility solution.
Opening New Revenue Streams for OEMs
Our platform enables OEMs to tap into new markets and revenue streams:
We focus on an underserved consumer market in need of basic mobility for work and family.
Unlike failed luxury-focused subscription services, we prioritize affordability and convenience.
Our fully integrated model allows us to control profit centers across the entire monthly combined membership payment.
Looking Ahead
As Gen Z continues to shape the future of mobility, subscription-based models like ours at AVVA Mobility offer a path forward that aligns with their values while creating new opportunities for growth and innovation in the automotive sector.
By embracing these new models of vehicle access and focusing on user-centric, flexible solutions, we believe the automotive industry can not only survive this shift but thrive in the new landscape of mobility.
1 Deloitte, "2025 Global Automotive Consumer Study," 2025
