British motoring services provider the RAC Dealer Network has launched a combined car subscription product featuring vehicle warranty, MOT test fee, an annual service care plan and RAC breakdown cover.
Vehicle Care 360 features a rolling contract with equal monthly payments that provides consumers with fixed payments to help with budgeting. The product will be sold through RAC’s 1,200 strong dealer network. It is operated by RAC and Assurant, RAC’s aftersales partner.
Users can manage the subscription product through a new online portal and app, called Vehicle Care, that was launched last month.
Research from Assurant found interest in a subscription product was highest among 18-34-year-olds and consumers who plan to buy their next car online. It found older customers prefer to buy in-person from a dealership.
“Our research shows that almost half of private car owners are interested in a combined automotive product of this type,” said Lee Coomber, RAC client director at Assurant, said. “The perceived benefits are the high level of protection offered against unexpected motoring costs, fixed costs over the length of the subscription, and the ease of having all four products from the same source.
“Of course, for supplying RAC Dealer Network retailers, especially those with their own workshops, it provides significant opportunities to retain service and warranty claims work, as well as increasing the possibility of the customer returning to buy another car when the subscription comes to an end.”
In October, RAC launched a range of savings available with its breakdown cover and users of its myRAC app, including a cheaper MOT product and users can view the MOT history of their vehicles and set maintenance reminders to make sure they book their services and MOTs on time.