Car subscriptions for used cars are a hit among Japanese youth. This new shift in commuting behaviour is becoming a boon for car subscription operators, specifically Nyle Inc.
A 20-year-old main from Oita city, in southwestern Japan, said “I first thought about buying a new car, but its delivery date was far in the future.” He subscribed to the service “Teigaku Carmo-kun” in November 2022. A mini-sedan Honda Grace only costs him a monthly fee of 33,000 yen, or about $250.
Used car subscriptions are an offer any youth can’t refuse. Patrons can renew their subscriptions annually, instead of a three-year contract for a car lease. It is a popular and financially savvy choice for those in their 20s and 30s, living in the suburbs of Tokyo.
Nyle Inc. started the Carmo-kun service in 2018. Demand nearly doubled in 2022, due to the chip global chip shortage, making new car deliveries being pushed back significantly. This prompted individual car makers like Suzuki Motor Corp and Kinto Corp, to enter the market.
