Loopit gains traction with flexible car subscriptions

The car subscription model is gaining popularity in Australia as consumers seek alternatives to traditional car loans.

Loopit, a company specialising in car subscription technology, offers a service that allows consumers to access vehicles without affecting their borrowing capacity. This development comes as inflation and economic uncertainty continue to influence consumer spending.

Loopit's platform provides dealerships and rental businesses with the option to offer flexible subscriptions. These subscription options cater to the financially conscious consumer, particularly those needing to balance credit for significant purchases such as homes.

The subscription model has found particular success with automotive businesses like Cairns Cars Group. Cairns Cars utilises Loopit's platform to aid customers in overcoming standard financing difficulties. The company has witnessed a 10% conversion rate from customers initially denied finance to those opting for a subscription.

Unlike traditional auto loans, which can impact a consumer's credit capacity negatively, Loopit's subscription model maintains borrowing power, making it attractive to individuals needing to preserve financial flexibility. Such individuals include home loan applicants and business owners.

Michael Higgins, Chief Executive Officer of Loopit, explained, "Loopit was designed to provide the market with a customer-first solution that not only meets mobility needs but does so in a financially accessible way. Today's consumers are thinking carefully about every credit decision, and Loopit's subscription model supports their long-term goals by offering reliable transportation without the debt commitment."

Cairns Cars Group's Auto Republic dealership has effectively integrated Loopit's subscription platform. By proposing subscription as a viable alternative during financing discussions, Auto Republic has managed to provide vehicle access for those who might face financial obstacles.

Felix Wong, Owner of Cairns Cars Group, noted, "For many of our customers, the flexibility of subscription is a lifeline. Loopit's platform allows us to support our customers through temporary financial hurdles and ultimately strengthen our relationships with them as they transition into vehicle ownership."

The subscription model from Loopit not only ensures reliable transportation access but also maintains financial security, addressing a vital market need. The platform empowers dealerships to offer adaptable, consumer-centric options, thereby reshaping the automotive financing landscape and facilitating an alternative avenue to vehicle ownership.

Higgins further commented, "As the market continues to evolve, Loopit remains committed to supporting our partners and their customers with innovative, accessible solutions. In an era when financial choices matter more than ever, Loopit is giving consumers control over their mobility options without compromising their future financial plans."