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Subscription payments. Renting instead of owning is preferred by Gen Y & Z

Renting instead of owning is preferred by Gen Y & Z
30.11.2021
2 min
[credi2]

Owning the latest mobile phone requires an ever-increasing amount of money. Nowadays fewer consumers are opting to buy expensive technology products as they miss flexibility and sustainability. According to the latest study by Credi2 “Consumer Behaviour Rethought”, almost half of all respondents find subscription models more attractive than buying products.

Netflix, Amazon and Spotify lead the way: flexible, digital offers that are perfectly adapted to the wishes and needs of consumers. With this concept, a large number of companies are reacting to the changed mindset of consumers that has been consolidated over the past few years: The desire for flexibility and constant innovation is pushing the importance of ownership into the background and making room for the possibility of “renting” products and services for a certain period of time. This concept works well with technology products. In a world where technology and user-friendliness of products are improving rapidly, consumers want to be able to stay up to date without having to pay huge sums of money all at once.

Owning products is no longer a priority - renting is the future

Especially for younger consumers, owning products does not play a significant role anymore. According to the current study by Credi2, almost 50% of 18 to 34 year-olds say that owning products is not important to them. 85% find subscription models with monthly payments attractive. This alternative enables them to always stay up-to-date in terms of both sustainability and technology.

Financial flexibility: the unbeatable benefit of subscription models

70% of young adults say that pay-per-use models give them more financial flexibility and make it easier to replace products with newer models at the end of the term. Since the products continue to be used after the end of the rental period, consumers pay relatively low monthly installments. This makes subscription models particularly suitable for products with a high resale value. These include smartphones, laptops, smartwatches, sports equipment and consumer electronics. Cars, too, are known to be a good example.

Sustainability in focus

It is not only flexibility that is important to customers, but also the issue of sustainability. 72% of respondents prefer subscription models because the products they rent are refurbished by dealers and then resold second-hand. This way, several people can enjoy the products and use them without putting an additional burden on the environment. 

Credi2 is sure that the demand for pay-per-use models will continue to increase in the future, especially because flexible use is currently a big trend. Retailers who offer their customers the possibility to rent products for a certain period of time will retain customers and strengthen customer loyalty. 

As the specialist for flexible financing models, Credi2 has developed a subscription model for Apple products. Currently, 7 dealers In Germany and Austria offer their customers a subscription for Apple products. After a rental period of 2-3 years, customers have the option of exchanging their product for a new model or upgrading within the subscription period.