Why Dealerships Must Rethink Mobility

The automotive retail landscape is in the midst of a profound transformation. Dealerships that have historically relied on traditional sales and showroom traffic are now up against a market that values lower commitment, flexibility, and digital convenience. Dealerships that don’t adapt run the risk of becoming obsolete in the face of growing expenses, changing customer tastes, and the entry of digital-native competitors. This article explores why 2025 marks a turning point—and how forward-thinking dealerships can turn declining showroom traffic and cost pressures into profitable, recurring mobility services. Acting now isn’t just an option; it’s critical to staying relevant and competitive.

Historical Pressures: Affordability, Declining Volume, and Cost Inflation

Due to persistent softness driven by affordability challenges and cyclical volume declines during major economic downturns (notably in 2008 and 2020), new car sales have remained stagnant for over a decade. A combination of economic recession, trade tariffs, the growing appeal of sustainable transportation models, and policy uncertainty surrounding EV adoption has all contributed to this downward trend. By April 2025, this pattern became more pronounced: petrol car registrations across Europe fell by 20.6% year-on-year, with sharp drops in all major markets:

• 🇫🇷 France: -35.2%

• 🇩🇪 Germany: -26.6%

• 🇮🇹 Italy: -14.4%

• 🇪🇸 Spain: -12.7%

Simultaneously, insurance premiums have surged, making car ownership more expensive than ever. In 2025, rates are more than 25% higher than pre-pandemic levels in many areas. Across Europe, premiums rose an additional 5% in early 2025 alone, echoing similar findings by Assurland, which reported a 6% increase year-over-year. At the dealership level, these pressures are felt acutely. Customers are holding onto vehicles longer, visiting service bays less frequently, and financing fewer new purchases. This erodes the traditional revenue pillars of the dealership model – new vehicle sales, finance and insurance (F&I), and fixed operations – and forces dealers to rethink how they deliver value.

Solutions for Modern Dealerships in a Shifting Market:

With the right digital tools and mindset, dealers can unlock new, recurring revenue streams while increasing customer satisfaction. Below are three scalable, tech-driven solutions redefining what it means to be a modern dealership in 2025.

1. Unlock New Revenue with Digital Rentals:

Whether it’s a test drive extended over a weekend, a tourist seeking convenience, or a gig worker requiring flexible access, short-term digital rentals unlock an entirely new customer segment for dealerships. With a digital platform, dealerships can offer daily or weekly rentals powered by a seamless, self-service digital experience — from insurance replacement vehicles to test-before-you-buy programs. Customers can reserve, unlock, and drive via the app, streamlining admin tasks. Modern rental programs are no longer bound by physical keys, paper forms, or front-desk staffing. Today’s most successful dealerships are using digital tools to deliver frictionless, scalable mobility experiences and unlock new revenue streams in the process. Here’s how tech is reshaping rental operations:

• Real-time fleet monitoring: Track vehicle location, usage patterns, and geofencing boundaries to reduce risk and optimize availability.

• Smart diagnostics & alerts: Stay ahead of maintenance with automated warnings on battery levels, speed thresholds, or mechanical anomalies.

• Remote control & security: Immobilize vehicles in case of misuse or theft, ensuring peace of mind and operational control.

• 24/7 access, no staff required: Keyless entry systems enable users to pick up and drop off vehicles anytime, improving convenience and reducing overhead.

• Integrated billing & damage reporting: Automate the admin—making short-term rentals easier to scale without increasing complexity.

For dealerships, these capabilities represent a shift from manual effort to intelligent automation, enabling a new class of rental offerings that are more accessible, efficient, and profitable. This addresses two major rental myths: “Rentals are too expensive.” “Rental cars are always old or worn out.” With connected systems and operational efficiency, dealers can offer modern, well-maintained vehicles at competitive rates, without additional overhead.

“Europe`s vehicle rental market is expected to grow at a CAGR of 19.31% between 2025 and 2033, reaching over $81 billion, the case for adopting flexible rental and subscription solutions has never been stronger.”

2. Turn Courtesy Cars into Revenue Engines: 

Courtesy cars have traditionally been treated as a cost of doing business—a necessary but expensive service to support customers during maintenance or repair visits. In most cases, these vehicles are either managed manually or outsourced to rental companies, leading to high overhead, low visibility, and little control over the user experience. However, this model can easily be flipped.

Rethinking the Courtesy Model:  Digitally transforming your courtesy fleet opens the door to operational efficiency and revenue generation.  With a connected, app-based platform, customers can self-serve pickup and drop-off, easing front-desk workload. Vehicles can be pre-assigned, tracked, and rotated efficiently using geolocation and usage data. By offering their own branded fleet—not outsourced rentals—dealers maintain control and consistency. During off-peak periods, courtesy cars can be repurposed for rentals or subscriptions, while real-time insights into utilization, damage, and performance transform them from sunk costs into smart, data-driven assets.

3. Win Loyalty with All-Inclusive Subscriptions: 

As ownership becomes less appealing, vehicle subscriptions are emerging as a powerful alternative, especially for younger, urban, and cost-conscious drivers who value flexibility over commitment. With a digital-first platform, dealerships can launch branded, turnkey subscription programs that bundle insurance, maintenance, and fees into a single, all-inclusive price. No hardware or IT complexity—just plug-and-play simplicity that integrates directly with existing dealer and OEM systems. Why Subscriptions Work:

• Serve customers who don’t want to buy or lease long-term
• Offer monthly flexibility without sacrificing revenue
• Keep your fleet active and aging inventory profitable

Operational Benefits:

• No hardware required—fully digital, white-label platform
• Data-driven pricing and fleet optimization tools
• TISAX & ISO 27001-certified security for peace of mind

Subscriptions don’t just drive recurring revenue—they build loyalty, extend brand exposure, and reduce inventory pressure.

Vulog’s Take: Rethinking the Role of the Dealership

“Dealerships are no longer just showrooms—they’re mobility hubs. In 2025, the most successful retailers won’t be those selling the most cars, but those offering the most ways to access them. Flexible rentals, courtesy cars, and digital subscriptions aren’t stopgaps; they’re strategic shifts redefining how value is delivered.

The market signals are clear: falling petrol car sales, rising ownership costs, and evolving customer expectations mean dealerships must pivot from single transactions to ongoing mobility services. The solution is threefold: unlock new revenue with digital rentals, transform courtesy cars into profit centers, and build loyalty with all-inclusive subscriptions. And thanks to modern digital tools, this shift is faster, lower-risk, and more scalable than ever.

At Vulog, we empower dealerships to thrive in this new era — not just by selling cars, but by becoming trusted mobility hubs customers return to again and again. The tools exist. The demand is here. The time to adapt is now.”

Results That Speak for Themselves

Early adopters of Vulog-powered mobility platforms are already seeing measurable returns, from reduced downtime in courtesy fleets to increased customer retention through subscription models. These are not experiments. They’re scalable, repeatable business models. Dealerships that embrace mobility are not just surviving—they’re thriving. Whether through short-term rentals, monetized courtesy cars, or vehicle subscriptions, the opportunity is clear. The question is no longer if you should adapt, but how fast you can.

Is your dealership ready to become a hub for mobility? Vulog can help.