Perrys Motor Sales has become the latest AM100 car retail group to launch its own online vehicle subscription offering through a partnership with Karzoom – launching its new Flex mobility solution.
Following South Coast auto retailer Hendy Group’s partnership with Karzoom, as the subscription start-up seeks to forge regional relationships with franchise dealerships to deliver a nationwide subscription offering, Perrys will offer flexible access and short term to cars from locations in Chesterfield and Preston through the new venture.
Perrys Flex will serve customers in Lancashire, Derbyshire and South Yorkshire, offering one to three month subscription options and the option of free delivery within 10 miles of each of the two locations.
Speaking exclusively to AM about the creation of Perrys Flex, the group’s chief executive, Darren Ardron, said: “There’s a lot of change happening in the industry and as a business we really need to start go off the beaten track. That’s part of it.
“Flex will fit very well with what we already have in the business. Perrys had only one rental operation at a site in Chesterfield. It’s now a very successful part of the business with high usage, but that part of the business works with utility vehicles.
“The subscription is aimed entirely at automotive customers – initially offered in partnership with Mazda UK – and will be aimed at a different type of customer. This really gives us a great opportunity to offer something new to customers who want maximum flexibility and assess potential demand.
Ardron suggested that Perrys Flex could fill a gap for companies keen to offer a company car to new employees, but sabotaged by current long lead times from OEMs.
Initially, the company plans to commit 20 vehicles to the program, offering subscription solutions to customers through its own online portal and the Karzoom website.
Ardron added: “One of the other benefits that subscription can also bring – in the current climate – is another potential flow of used car stock coming back into the business.”
Ardron recently appeared on the AM News Show, where he discussed Perrys’ challenges for 2022 and the need to diversify.
In May, AM reported on the group’s annual financial results for 2021, which showed a 275% increase in profit before tax, to £12m (2020: £3.2m), and revenue. £600m – 22% more than the previous one. £491m a year.
Commenting on the new partnership with Perrys, Karzoom Co-Founder and Chief Commercial Officer Mike Fazal said, “Partnering with Perrys, another innovative and forward-thinking dealership group, is extremely exciting.
“Our partnership model allows dealers to deploy a fully supported subscription solution in a very short time, while also providing all the system functionality required to meet customer and dealer needs.
“Combined with our unique insurance solution from Zego and the exceptional customer service from Perrys, we can offer a first class subscription service to customers in these three new regions of the UK.
“We are very pleased to work with Darren and the team and look forward to building significant subscription business with them over the months and years to come.”
Karzoom provides a complete IT platform for vehicles, a complete insurance solution via Zego, reservation and payment systems as well as a support service for subscribed customers.