Business Irish

Monday 26 August 2019

Nissan to unveil car 'subscription' model

Nissan Ireland is set to launch a new style of ownership that will mimic mobile subscriptions, the Sunday Independent can reveal. Stock picture
Nissan Ireland is set to launch a new style of ownership that will mimic mobile subscriptions, the Sunday Independent can reveal. Stock picture

Michael Cogley

Nissan Ireland is set to launch a new style of ownership that will mimic mobile subscriptions, the Sunday Independent can reveal.

In an exclusive interview, Nissan Ireland's chief executive James McCarthy said the company was finalising "key partnerships" for its upcoming personal contract hire (PCH) model.

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McCarthy described PCH as a "natural evolution" from the controversial personal contract plans (PCPs), which have become extremely popular among Irish car buyers.

"You'll own your car the same way you own your mobile phone; it will be a monthly payment," he said.

"You have the car on long-term hire, maybe a three-year commitment at a certain monthly payment, and that's it. You're not worried about residual values, you're not even too worried about the cost of the car."

McCarthy said the new model, which he expects to launch in January, is aimed at younger people who are "not hung up" on owning a car. He said the younger demographic saw owning a vehicle as a "restriction".

The Nissan chief said the big difference between PCP and PCH will be that motorists will not need to stump up a deposit to drive a new car.

McCarthy also took aim at the high level of used car imports entering Ireland.

A significant deviation in the way new and used cars are taxed matched with a weak British pound has driven a sizeable increase in the popularity of imports.

"Why the Government would support a policy that effectively incentivises people to take in older cars, as opposed to buying newer, cleaner cars, I cannot understand," McCarthy said.

"It completely flies in the face of all their statements regarding lowering emissions from our transport fleet."

He also called on the Government to double the number of electric chargers within the year.

The Nissan Ireland boss announced a "multi-million euro" investment in its showroom on the M50 and said that physical retailing will remain a key focus.

Sunday Indo Business

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