Volkswagen AutoAbo Subscription Goes Live Today

Volkswagen AutoAbo is now live in Germany

German automaker Volkswagen is now offering car subscriptions in Germany under their business model named Volkswagen AutoAbo. As of late, Volkswagen has digitized their sales efforts and established new business models at a fast pace.

With the launch of Volkswagen AutoAbo, customers are able to subscribe to the all-electric ID.3 and ID.4 models on a monthly basis, similar to a loan or rental car but for a longer period of time. The service will not only provide all-electric vehicles like the ID. series, but will include both gas and hybrid vehicles down the line.

The Volkwagen AutoAbo subscription periods are fairly short at 3-months and 6-months. After the period, the customer is able to cancel their subscription. This provides Germans with 800 monthly kilometers as well as a full-service package that includes registration, maintenance and service, and insurance. VW will have almost 2,000 nearly-new used cars available in the upcoming months, making it one of Germany’s largest car subscriptions.

“A growing number of people don’t want to own a vehicle permanently, but would like the exclusive use of one for a defined period. The Volkswagen AutoAbo is a flexible new subscription offering that is mid-way between leasing and car sharing,” said Klaus Zellmer, Board Member for Sales and Marketing at Volkswagen. “We estimate that, by 2030, around 20 percent of our revenue could come from subscriptions and other short-term mobility offerings.”

It’s surprising to think this type of car subscription business model was not available sooner. The monthly subscription is very simple and convenient as it’s just a flat rate for an all-electric car, which helps give the consumer a lot of flexibility in both the short and long term. The only expenses the consumer has to pay for is the monthly rate and the charging costs. Fingers crossed that Volkswagen AutoAbo arrives in America as soon as possible.

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