Mycardirect has launched its innovative auto subscription plan at an opportune time. Opportune, because at a time of momentous change in the car industry the likelihood is that those trends that have been emerging gradually in the auto finance industry for some time will be propelled forward in short order.
One of those trends that has been evolving slowly is the use of vehicles by subscription and mycardirect has, in its business model, moved the acquisition of cars by subscription finance forward significantly.
The man behind mycardirect is CEO Duncan Chumley (pictured above), who brings to the concept a career history of senior roles in vehicle leasing, predominantly in the PSA Group and latterly as managing director of Free2Move Lease where he developed the mobility concept from a standing start over a three-year period.
Mycardirect contains a range of innovative features. It is 100% online and drivers can choose from a wide range of vehicles including the latest electric and hybrid cars. Drivers select a subscription period that suits them – from one month to 24 months - and during that time, if they wish; they can change to a number of different vehicles.
Other features include an all-inclusive package with no maintenance, road fund licence, or replacement tyre concerns. There is the option of the vehicle being delivered to the customer’s door within 72 hours, and collection when no longer required, as well as an insurance cover if required.
Chumley has long forecast the advent of subscription services for auto acquisition and he told Asset Finance International: “The automotive industry has actually been rather slow in creating alternatives to the expense of short-term rental, the commitment of long-term leasing and the complexity of car ownership.”
His goal in forming mycardirect is straightforward: “It is to give customers what they want – flexibility being key. Having worked in the mobility sector for some time I saw that removing the remaining pain points was crucial to the success of any new enterprise.”
Once his vision was established he obtained financial backing from an industry Angel investor. The complex technology for a system that could be delivered online entirely is provided on a platform supplied by Wagonex.
The crucial task of client verification is made available by Onfido which utilises AI-based technology to assess whether a user’s government-issued ID is genuine or fraudulent, and then compares it against their facial biometrics. In this way it provides mycardirect with the assurance it needs to onboard customers remotely and securely.
Growth predicted to be vibrant
Chumley explained: “Currently, customer uptake in mycardirect has been split between 60% retail and 40% business and we anticipate that fleet enquiries will remain strong especially as, in the current economic climate, companies may not want to commit to a long-term contract. We do expect, however, to expand into the light commercial vehicle sector in the very near future – and we have in place an existing capability for daily rentals for between one to three day periods.”
At present the company operates from its head office in Hemel Hempstead with additional branches at Cambridge and Birmingham.
Looking ahead Chumley predicts growth to be vibrant given his belief that customers are seeking for a service that provides convenience, value, flexibility, home delivery and time saving – all delivered in one package. “I believe,” he stressed, “that subscription services can deliver all these needs and therefore are progressively going to become the accepted way to acquire a car.”
His business plan is for a subscriber base of over 1,000 in 12 months. The demographic of his customers is not likely to be confined to the younger age groups since already he has enrolled clients well over middle age. He added: “Those customers who have transitioned from company cars are well used to monthly payments and worry-free driving. To them car usage is paramount rather than car ownership.”
