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The car subscription market in Luxembourg is taking off, as firms aim to offer greater flexibility to motorists who wish to avoid being tied to long-term contractual and financial commitments.

Turismo, which was founded in Luxembourg in 2020 by Angel Fievez, is among the companies seeking a share of the market, which could be worth more than $40 billion (€36.8 billion) by 2030 in the US and Europe, according to a recent study by the Boston Consulting Group.

The study found that motorists are beginning to view a subscription model as an attractive proposition because of lower upfront costs, the ability to change cars, convenience and minimal commitment.

Luxembourg’s Transport Ministry said that it has observed an increasing number of car subscription offers in the country alongside car sharing, car rental and car leasing. “It is not surprising given that a similar trend is emerging in other European countries,” a spokesperson said.

Turismo was initially established as a car rental service but made a “strategic pivot” in late 2022 towards car subscriptions.

The firm, which focuses mainly on high-end luxury vehicles, offers subscribers the option to switch from one vehicle to another according to their circumstances and desires.

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“There are advantages in terms of flexibility of spending, being able to change vehicles, being able to increase or decrease monthly payments according to your earnings at the time. You don’t always have a four-year view of what you’re going to earn,” Fievez said.

Turismo offers premium and luxury cars in two subscription packages are available – Turismo Plus, which allows users to change their cars up to four times a year, and Turismo One, which offers unlimited switching.

Changing cars

The option of unlimited switching comes at an annual cost of €7,780 (excluding VAT), while a Turismo plus subscription will set the user back €3,780 (excluding VAT) per year.

Once the subscription is paid, users can opt for different kinds of cars, ranging from the Range Rover or Porsche Cayenne in category one or the premium Lamborghini Aventador or Ferrari Unica in category two.

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Cars in category one come at the price of €2,180 (excluding VAT) a month, while those in category five can cost the subscriber up to €9,980 (excluding VAT) per month.

The packages allow the customer to drive up to a maximum of 2,000 kilometres a month, according to the company’s website. If the user goes over the limit, an additional €0.66 per kilometre is charged.

In addition to Luxembourg, Turismo also offers the service in France and Belgium, and plans to expand to Switzerland in 2025.

Reduced carbon impact?

Luxembourg’s Transport Ministry points out that switching to a car subscription service may offer environmental benefits if it helps to reduce the number of vehicles on the road.

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However, the ministry emphasises that car sharing is the most environmentally friendly option. In this case, several users can share a single vehicle according to their personal needs, whereas a car rented on a subscription basis remains allocated to a single user for the duration of the subscription.

(This story was first published on Virgule. Translation, editing and additional reporting by Kabir Agarwal)

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