German auto manufacturer Porsche AG has its eyes set on the expansion Porsche Drive, its short-term rental and vehicle subscription program package, a Porsche spokeswoman told Auto Finance News.
“After successfully expanding our vehicle subscription and rental programs, our key learning is there’s a market for shorter-term access to our vehicles,” said spokeswoman Jade Logan.
Porsche started its flagship program, Porsche Passport, in 2017. Recently, the OEM packaged it under a single name: Porsche Drive, which has two service arms: Drive-Subscription is a monthly subscription model, and Drive-Rental is a short-term rental program.
Program members can utilize Drive-Subscription as a mobile upgrade service, and have access to Porsche’s entire catalog as often as they like, or rent from a limited list of models on a short- or long-term basis through Drive-Rental.
Last summer, Porsche rolled out the services to Las Vegas, Phoenix, San Diego and Toronto, with plans for expansion, although Logan declined to provide additional details at this time.
“Part of our thinking in expanding the programs is based upon the overwhelmingly positive feedback we’ve received from customers,” Logan said, noting Porsche also extended Drive to dealers to bring the service to scale.
Merging the two programs while preserving their independent services has provided Porsche’s audience with options to fit their lifestyles, Logan added.
“We’ve had several members who have been in the program for over two years, while others take advantage of the month-to-month membership and remain in the program for a shorter duration but decide to purchase or lease a Porsche vehicle,” she noted.
There are two primary factors driving the prosperity of Porsche’s Drive, Logan added. “Close to 80% of Porsche Drive–Subscription members have never previously owned a Porsche, and members are eight years younger than the average Porsche buyer,” she said, noting this has attracted a new audience for the brand.
While the pandemic initially slowed member usage of the services, concierge deliveries are now again available in all five cities except Las Vegas, where members must pick up their vehicles from a dealership, Logan said.
Porsche’s first-quarter automotive sales fell 20.2% year over year to 11,994 units sold from January to March, according to retail sales figures. As a result of tightening coronavirus concerns, Porsche Financial Services offered a six-month extension on lease contracts through April 30. It is unclear if that lease extension remains available.
Porsche deliveries in the first quarter dipped 4.6% to 53,125 units delivered, according to first-quarter earnings report from Volkswagen Group, the parent company of Porsche AG.
Originally published on Auto Finance News