Subscription growth boosts Mycardirect sales by 46%

AAM Group’s car subscription business Mycardirect has increased its sales by 46% in the past year.

The company, which officially launched in September 2020, is now profitable on a monthly basis, cash generative, and has “robust” systems and infrastructure.

A statement issued by AAM Group said: “The success of the fledgling subscription company has been nothing short of remarkable and has proven vindication for the group’s decision to invest £6.5m in the project.”

AAM group chairman David Murray-Hundley added: “Mycardirect has done a great team job as part of the revenue increase for AAM Group this year. This is particularly pleasing in a time of challenging new vehicle supply issues and a cost of living crisis which is putting pressure on consumers and businesses.

“We continue to focus on costs, customer service and the customer journey. I am proud of the whole team, who, collectively, have put the group into profit. Our focus must be to remain cash positive at a time when all businesses are experiencing challenges in the current economic climate. Mycardirect has grown significantly and we have also seen steady growth from group brands, Onwrd and BestCarFinder.”

Such has been the success that the car subscription company achieved profitability 18 months ahead of schedule, and business for both Mycardirect and the AAM Group as a whole has gone from strength to strength. The Mycardirect brand, along with the group’s other brands of Onwrd and BestCarFInder saw total sales increase by 46% to £23m in the 12 months to June 2022.

Mycardirect CEO Duncan Chumley said: “I am very proud of what has been achieved in turning a start up company into a profitable business within 18 months. Mycardirect’s car subscription product appeals to both retail and business customers and that goes to the heart of our success. The flexibility we offer gives individuals and companies the confidence and peace of mind to choose a vehicle, safe in the knowledge that if circumstances change, they can switch vehicles or reduce, extend or cancel the contract to suit. I am confident that this excellent proposition will herald further growth over the next two years”.

With a fleet of over 3,000 vehicles available for subscription, EV growth has undoubtedly driven the business and the car subscription flexibility has given customers the confidence to choose an EV for the first time; so much so that EVs, including hybrids, now make up nearly 40% of the AAM Group fleet.

AAM Group COO, Colin Mather added: “The last two years have been hugely rewarding. The Board’s decision to put the group’s resources behind the Mycardirect investment and assist Duncan to develop such an effective team over such a short time has been well justified, but we have ambitious plans for further growth; growth that will see us actively developing the group’s Onwrd and BestCarFinder brands alongside the Mycardirect business.

“By leveraging technology and digitalisation across the whole group we can further enhance the customer experience and streamline the operations side of the business. We will also invest further in the backend of the business and in our amazing team, to improve operational efficiencies. In addition, we will continue to develop aftersales to add revenue streams and deliver a world class service to our customers. There are exciting times ahead.”