TOKYO, April 11 (Xinhua) -- The COVID-19 pandemic in Japan combined with a global semiconductor crunch has seen customers here take a step away from purchasing new and used vehicles due to a surge in prices instead opting for vehicle subscription services for used cars, local media reported on Monday.
According to Japan's public broadcaster NHK, "vehicle subscription services for used cars are becoming more popular in Japan as their retail prices rise in a knock-on effect of the coronavirus pandemic."
Customers opting for a vehicle subscription service pay a fixed fee every month and have access to a range of vehicles, with the costs involved being considerably lower than buying and insuring a new or used car.
"A semiconductor shortage and cuts to auto production due to the pandemic have delayed deliveries of new vehicles. That has led to higher demand for used cars that consumers can get relatively quickly, pushing their prices up," NHK said.
The result has seen a significant rise in the number of customers moving away from purchasing new or used cars and opting for much cheaper subscription services offering good quality and affordable second-hand automobiles.
NHK quoted one customer as saying that he "tried to get a new car, but it would have taken a long time to be delivered. When looked at used cars, the prices were so high that he felt he could not afford one."
"The customer said he decided to use the service because he needed a car right away to get to work."
For the service, he pays 11,000 yen (about 88 U.S. dollars) a month and has access to a second-hand mini vehicle, with all taxes and inspection fees covered by the single monthly cost.
In areas where driving is essential, outside of large metropolises and in more rural regions where public transportation is scarce, vehicle subscription services are seeing a business boom, an employee from one such company said. ■