As subscriptions for a wide variety of commodities have become common across the world, the younger generation in Japan have recently started using them for used cars amid a delivery delay in automobiles caused by a global chip shortage.
"I first thought about buying a new car, but its delivery date was far in the future," said a man in his 20s from the city of Oita in southwestern Japan. He began subscribing to the service "Teigaku Carmo-kun" from November 2022, paying a monthly fee of 33,000 yen ($250) and drives a mini-sedan Honda Grace.
The system lists around 5,000 used automobiles online, providing subscribers with their choice of car that can be delivered within four days. Drivers are asked to pay for their own gasoline, but are not hindered by a limit on mileage.
Unlike car leases, which require a minimum three-year contract, subscriptions can be renewed annually. Although Carmo-kun also supplies brand new cars, used cars have gained traction among younger people -- mainly those in their 20s and 30s living in the Tokyo suburbs and regional areas -- for their inexpensiveness.
The Carmo-kun service operated by Nyle Inc. began in 2018. The company said it nearly doubled the number of its contracts in 2022 for used automobiles from the previous year, as deliveries for new cars have been pushed back due to a chip shortage affected by COVID-19 and the war in Ukraine.
As a consequence of the postponements, used car prices have also climbed in tandem with an interest in subscriptions.
"The rise in popularity was also supported by people switching commuting styles from public transportation to cars in a bid to prevent infection," said a public relations representative of Nyle.
The car subscription market in fiscal 2025 is expected to grow to 50 billion yen, or 25-fold, compared to fiscal 2019, according to JMA Research Institute.
Individual carmakers have also been entering the subscription market for used cars in response to rising demand, with Suzuki Motor Corp. and Kinto Corp., an auto leasing firm belonging to the Toyota Motor Corp. group, joining the fray last year.
