How Subscription Services Can Create More Predictable Revenue Streams for Your Dealership – Vince Zappa, Clutch Technologies

CBT News, Jan. 24, 2019 — The buzz surrounding car subscription services in 2018 has continued full speed ahead into 2019. With more millennials looking for alternative vehicle ownership options, and the appeal of not being tied down to one car, subscriptions services are only expected to increase in popularity this year. On today’s show, Jim Fitzpatrick speaks with Vince Zappa, president of Clutch Technologies, a leading consumer subscription software provider for the automotive industry (and Cox Automotive brand).

Zappa explains how vehicle subscriptions can create a new revenue stream for dealers. He said: “We think subscription as a system activates a continuous stream of cars moving through and being supplied to the dealers’ consumers on a recurring basis. So, most dealers today don’t make a whole lot of money as it relates to a new car sale. This is nothing new, however it’s all made in both incentives and financing, etc., down the line. We think that subscription actually accelerates that and makes it a overtime. In many ways, it’s almost analogous to how we, I think the software industry thought about selling software to subscribing to software. I think there’s actually an analogy to that whereas it will take time, but I think we’re seeing the beginnings of the industry moving to, at least parts of the industry moving toward a more recurring model, [a] recurring revenue model.”

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