Leasing: Toyota Bets on Subscriptions, Too

The Japanese car maker Toyota establishes a new company called Kinto, to match actual consumption habits in the car industry: an all-inclusive subscription-inspired model, or a compromise between owning a car and renting one.

The users may opt for a monthly subscription contract, for a three-year period, whereby they are allowed to regularly change car.
Two options:
- Kinto One: This offer can be subscribed online or from Toyota car dealers. It includes a reward programme for good car drivers. Subscription costs may range from €400 to €850/month based on the selected car model: Prius, Corolla Sport, Alphard, Vellfire or Crown.
- Kinto Select: An upmarket offer, with subscription fees starting from €1,550/month for one of the six Lexus-brand models (ES300h, IS300h, RC300h, UX250h, RX450h or NX300h). In this case, the customer is allowed to change car every 6 months.
Besides the rental cost, these monthly subscriptions include insurance policies, scheduled car maintenance as well as vehicle taxes and registration charges.
Kinto is only available in Japan –starting with Tokyo. A nationwide rollout would be scheduled later.

Provide assistance as fewer people now own a car. With Kinto, Toyota stresses another way to deal with car consumption habits via a flexible, less compelling model compared to buying a car or long-term car rental offers.
Enhance their leasing model through applying more flexibility. All-inclusive subscriptions, rewards programme for good driving behaviours, option for changing car every so often during the contractual period: as many promises enabling Toyota to make sure their business model actually matches customer expectations.

Kinto is jointly funded by Toyota Financial Services and the oldest and largest industrial conglomerates in Japan: Sumitomo.
As they unveil Kinto, Toyota joins the ranks of car makers seeking to rethink subscription-based car rental services. Other examples include Book by Cadillac, Access by BMW, Porsche Passport and Care by Volvo. These very high-end options, however, have trouble building their models: flexibility comes at a high logistical cost for manufacturers.
Toyota stands out as they plan two distinct options: the first one is less flexible and also less expensive; the second one can be compared to an actual subscription, even if safeguards apply to monitor its use.

Category : Alertes quotidiennes