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  • Mobility
  • France

Seat Sees Big for their Non-Binding Offer

FACTS

  • Barely two months after launching their non-binding leasing offer for cars in France, Seat announces their service is being expanded as they report encouraging results.
  • Their non-binding leasing package will no longer be limited to Seat Arona Urban car models but also made available for Urban SUVs.
  • From now on, three models are covered:
    • Seat Arona from €239/month
    • Seat Ateca from €339/month
    • Seat Tarraco from € 439/month
  • Seat sums up their offer stressing three main principles:
    • Early cost-free cancellation from the 31st day
    • Change of car for free at any point
    • Possible adjustment of the amount of the lease

INITIAL RESULTS

  • 68% of customers surveyed by BVA in June claim they are interested in this offer
  • This offer was made available 2 months ago
  • Nearly 1000 financing applications received by Volkswagen Financial Services
  • Increased traffic in car dealerships
  • Progress by Seat in France since June

CHALLENGES

  • Rolling out an expansion strategy. As a challenger in the French car market, Seat relies on non-binding offers to attract new customers. Their initial results proved encouraging and they intend to bet on this offer on the SUV market.
  • Attracting younger customers. This non-binding offer is first meant for Millennials and initial feedback seem to indicate their strategy is successful.
  • Boosting their presence in France. Seat already made it clear they will be communicating more about this offer –at least in summer– and further bet on potential media impact.

MARKET PERSPECTIVE

  • The car consumption market is being reshaped by an increase in the number of subscription-based offers, even if the actual impact of these campaigns remains unclear.
  • Upmarket offers (Book by Cadillac, for instance) haven’t met their audience so far. Yet, it seems that today’s car consumption models upholding more flexible and affordable approaches, along with a non-binding promise are easier to market.