Mobility as a Service (MaaS) is an emerging trend that has been gaining popularity in cities across the globe as an alternative transportation model that doesn’t depend on owning or leasing a vehicle. There are many reasons for this shift: urban areas are expanding and more people are living in cities than ever before. Owning a car isn’t always a practical option for many due to the lack of parking spaces and hefty purchase prices. One solution could be subscription-based models. According to Global Market Insights, the global automotive subscription services market was valued at US$3bn in 2019 and is predicted to reach US$40bn by 2026, growing at a CAGR of 40%.
Americans take out more than US$60bn in new auto loans each month, as per credit marketplace Lending Tree. Furthermore, the average loan takes up to 70 months to repay and is generally the third largest debt type across the US. “Such high statistics are not a good read financially; it shows that people find it difficult to clear out their auto loans quickly while also handling other aspects of their finances,” says Lyle Solomon, Principal Attorney and Consumer Financial Analyst at Oak View Law Group. This marks a significant increase from the standard car loan periods, which usually consist of agreements of 24 or 48 months, according to Car Creditor MyCarCredit.