Loopit launches in NZ

Australian car subscription business Loopit has officially launched in the New Zealand market, announcing a partnership with the Giltrap Group and global car rental giant SIXT which includes EVs such as the Audi e-tron.

The launch comes after Loopit revealed plans for global expansion and will see New Zealand car dealers and manufacturers benefit from the company’s leading software.

Giltrap Group is the owner of European Motor Distributors, the licensed importer and distributor for the Volkswagen Group in New Zealand – with brands including Audi, Volkswagen, Skoda, Porsche, and Seat – and the country’s largest automotive retail group.

Loopit’s cloud-based end-to-end software solution allows existing car dealerships, car brands and other companies to offer car subscription through a lucrative recurring revenue business model.

This partnership will see Giltrap Group offering the car subscription solution through SIXT, which it recently launched in the New Zealand market.

SIXT is headquartered in Germany, and the New Zealand programme will act as a pilot, with the organisation looking to then implement subscription into other markets.

Loopit’s innovative cloud-based software is powering this high profile ‘New Mobility’ offering, dubbed SIXT’s SUBSCRIBE+.  The subscription solution provides a streamlined experience for both the company and consumers.

SIXT is all about removing the hassle of owning a vehicle by providing customised solutions that guarantee maximum flexibility and accessibility to a wide range of mobility options. Together with classic short-term and long-term rental, SIXT’s carefree subscription gives Kiwis access to flexible car usage options of six, nine or 12 months with a guaranteed new vehicle that best suits their individual mobility needs.

“The car industry is currently experiencing a disruptive period and subscriptions provide an opportunity for dealerships to innovate and cater to shifting consumer demands,” Giltrap Group business development general manager Dane Fisher says.

“We’ve already seen the subscription solution gaining popularity around the world and we’re excited to now bring it to New Zealand customers.”

“We expect the subscription industry to rapidly become a significant part of the automotive world moving forward. As a business, we aim to be at the cusp of industry innovations and our partnership with Loopit is just another example of this.”

Giltrap Group represents 18 car brands in New Zealand, including Aston Martin, Audi and Volkswagen. The new subscription service will include luxury cars and EVs, with the flagship models being the Range Rover Velar, and Audi e-tron.

“The COVID-19 pandemic saw new car sales at an all-time low and led to increased interest in subscription from dealerships wanting additional revenue,” Loopit co-founder and managing director Michael Higgins says.

“Our technology has already proven a success across Australia, and we’re excited to bring this innovative solution to dealers in New Zealand. Being the leading car dealership group in the country, Giltrap Group is in an ideal position to launch the offering.

“We are also thrilled to be working with SIXT to expand its car rental service through this collaboration. It is hugely exciting for the company to have chosen New Zealand to trial the car subscription concept and we look forward to working with them to integrate the technology into other markets.”

Loopit has experienced tremendous growth since first launching in early 2019, partnering with the likes of Titan DMS and Dealer Solutions – which is part of Cox Automotive – providing access to more than 1000 Australian dealers.

The company announced in July it would be exporting its industry-leading technology to New Zealand, the Middle East and the United Kingdom.

Most of Loopit’s revenue comes from established car dealerships, OEMs and emerging car subscription providers which pay a percentage of the value of each recurring subscription placed by customers, plus a fixed fee.

It’s forecasting underlying sales by participating providers to reach A$38 million for the current calendar year based on existing dealer performances.

Car subscription services such as HelloCars have been increasing in popularity amid the COVID-19 pandemic, with Australian consumers looking for a more flexible alternative to traditional car ownership.

During the lockdown, Loopit saw a 52% increase in enquiries from dealerships wanting to integrate subscriptions into their business.

The Loopit platform provides car dealerships, OEMs and emerging car subscription providers with “subscription in a box”, including the software, training and services needed to offer car subscription to customers simply and easily. With Loopit integrated onto their websites, dealer partners simply need to select cars from their stock to make available for subscription. Customers can then browse through the website, choose the car they want and subscribe online.