VTB and VTB Leasing Group will test a car subscription service for retail clients

VTB, together with VTB Leasing Group, plans to test a car subscription service for individuals in the first half of 2021. This was stated by Deputy President and Chairman of the Board of VTB Anatoly Pechatnikov during a press conference.

“We see that personal cars are being replaced by the tools of the sharing economy — carsharing, taxis and subscriptions. This trend is growing, so we plan to offer customers products that are relevant in such conditions, convenient and beneficial to use. The new product is strategically interesting for the Bank and VTB Leasing Group for expanding the potential audience of customers and strengthening overall market positions,” Anatoly Pechatnikov noted.

“For legal entities, we launched a trial subscription service in July 2020. Now individuals will also have the opportunity to register a car as a subscription. We believe that the new service will be able to find its consumer, as it is a logical continuation of the automotive market's movement towards a sharing model. More and more people in the world see the benefits of using rather than owning. Now the subscription is a “blue ocean”, an opportunity that needs to be explored on a large scale, and perhaps we will be able to create a new market in Russia,” comments Dmitry Ivanter, CEO of VTB Leasing Group.

According to Anatoly Pechatnikov, the new service involves a long-term lease of a new car. “According to our calculations, for customers, a subscription is 15-20% more profitable than using carsharing, and the monthly payment is on average 1.5 times less than for a car loan,” VTB top manager specified.

The benefit of the client is that he gets the new car he likes right away, pays for fuel, washing, parking and fines. VTB Leasing Group takes care of the rest of the support: registers the car with the traffic police, organizes maintenance, replacement of consumables, provides CASCO, OSAGO, DSAGO insurance and emergency commissioner services (departure to the scene of an accident, registration and collection of certificates), replacement of a seasonal set of tires, their storage and tire fitting, 24/7 roadside assistance and additional concierge service.

The service provides for flexible lease terms for a period of 6 to 24 months, contractual mileage up to 20,000 km per year with the possibility of increasing it. At the pilot stage, a limited number of models will be offered in the brands of the middle and upper price segments. Depending on the test results, the number of brands may be expanded in the future.