Subscription Service: The Luxury Lot
OpenRoad’s PORTFOLIO subscription service is attracting car enthusiasts with a taste for variety.
OpenRoad Auto Group’s launch of an all-inclusive car subscription service offers consumers the freedom to experience driving multiple luxury vehicles within a single month. Aptly named PORTFOLIO, the application-based subscription program provides customers with a lineup of 25 new models—from brands like Porsche, Land Rover, Jaguar, Lexus, Mercedes-Benz, BMW, Genesis, Infiniti, and Audi—to select from, for one flat monthly fee.
“These days consumers are seeking more variety in their driving experience beyond the traditional car ownership model,” said Christian Chia, CEO of OpenRoad Auto Group. “We’re excited to be able to offer a new option that will be attractive to a growing consumer segment—one that delivers more convenience, a lower level of commitment, and flexible access to more dream cars, more often.”
Special subscription service
Like other car subscription services, PORTFOLIO targets today’s culture of instant gratification and impulse purchasing by being available as an app on smartphones, and appealing to successful and well-established professionals.
However, to join the service, all drivers must be a minimum of 21 years of age, and have a clean driving record, after which they pay a one-time initiation fee of $750, and choose from three exclusive packages:
- $2,499 per month for six months;
- $2,999 for three months; or
- $3,499 for a month-to-month subscription.
The most attractive part of the service is that customers are not bound to a contract, as is usually the case when leasing a vehicle. Instead, clients can flip their cars up to six times a month, and receive comprehensive vehicle insurance, maintenance, and pick-up and delivery through a 24-hour concierge service.
“Right now, people tend to flip their cars about three times a month, and that’s matched 100% to lifestyle needs. So, whether that’s a golf trip, or a date night, or another kind of circumstance that’s happening in their life, that’s when they’ll flip the car,” said Alex Parsons, Program Manager for PORTFOLIO at OpenRoad Auto Group.
Subscribers can also rate their experience with the vehicle, which lets PORTFOLIO upgrade their fleet to meet clients’ preferences, though the popularity of cars can vary depending on seasons. Moreover, customers can pause their service and freeze their billing cycle when they go out of town, so they don’t get charged for the weeks they don’t have a car.
According to Parsons, the CSI ratings for the service have been higher than for any current dealership within the company.
After six months of operations, PORTFOLIO is seeing a 10 to 15% month-over-month growth and has a total of 41 members currently subscribed to the service. They hope to end the year with 100 members.
The company also aims to continue maintaining its success with operations, client experience, responsive software, and ensuring transparent and clear communication with clients.
In fact, they’re planning to introduce another section to the service.
“We are looking into opening up what we’re going to call our Premium Tier,” explained Parsons. “It’s going to be a little more economically priced, and we’re going to be looking at brands like Toyota and Volkswagen, Honda, Mazda, and the list goes on and on; so, every brand that we sell in the mainstream marketplace under the OpenRoad Auto Group umbrella.”
That said, OpenRoad Auto will be offering this Premium Tier as a way to reach a wider audience at a more economical price point and expand on a service that has already proven to be successful.