Florida-based luxury car subscription service Revolve is planning an expansion to Texas and California in 2019 as well as the introduction of “a few more” lower-priced tiers, Chief Executive Asoka Veeravagu told Auto Finance News.
Revolve curates a list of vehicles for which its luxury-car-enthusiast consumer base can subscribe.
“South Florida is one of the top five luxury-car markets in the country, it has a high lease penetration rate, and some of the brands have their best-performing dealerships in this market,” Veeravagu said. “We felt it was an ideal market to launch and incubate this model and now that we have learnings and proven success here the idea is to start migrating to other markets that have a similar type of car culture.”
Subscriptions to Revolve include insurance, maintenance, servicing, a white glove concierge service and start at $1,900 a month for vehicles with an MSRP of $80,000 to $110,000. It tops out at $2,600 per month for vehicles with an MSRP of $110,000 to $160,000.
Veeravagu is well aware the program isn’t cheap, and he doesn’t intend to be the most affordable on the market, but there are plans to bring down the cost a bit.
“Shortly, we’ll be expanding with a few more tiers below where we are, but we wanted to hone the model and build this as a premium experience first at this higher end and then over time build down into lower price points,” he said. “We know that car lovers, and automotive enthusiasts exist across the spectrum of price points it’s just about what can they afford.”
Many players have entered the subscription space in the past year, and Veeravagu believes there’s plenty of the room in the market for multiple subscription services.
“We’re excited to see others like the OEMs continue to announce programs because that just further reinforces that subscription is a good model,” he said. “Dealers getting in is good too because consumers go to the dealer to shop for cars, and now they are getting buy, lease, and subscribe as a new option, which builds awareness for companies like ours.”