The company has contracts with several major manufacturers. But, its growth has slowed down over the last few years. With a stable penetration ratio in the new car market, subscriber growth for the satellite provider is getting stagnant. The company’s new net subscribers in the Q1 2014 were 2, 67,000whereas it added 7, 20,000 subscribers in Q3 2014.
The main reason for entering the used car market is that companies like CarMax and Vehix have reported that satellite radio penetration in the used car market is just around 30%. The number shows that the market is unsaturated and has great potential.
This month Sirius XM announced that it will provide its services to auto dealers as well. It will be provided using a Reynolds ERA Dealership Management System via the Reynolds Certificate Interface Program. With this program, the dealers will able to participate in Pre-owned and Service Lane Programs. They will be able to use the radio during test-drives. They will be able to offer three-month free subscription to used car buyers.
Here are few of the Programs that are offered to Used Car Buyers by Sirius XM
>> 2 Week Subscription offer
Sirius XM is trying to activate idle OEM-installed radios in used cars. The company is offering two-week free subscription for used car buyers. The introductory price is very low at $5 per month for the first five months. It is $25 if you decide to make a lump sum payment for the first six months.
>> Direct-to-Dealer Pre-Owned Program
The company targets high-end used cars with this program. Sirius XM initially signed contracts of free monthly trials for certified used cars only. But, now they have extended this service to any used car that had a satellite radio installed. Today, 12,100 dealers are included in this program.
>> Service Lane Program
This program was launched in August 2013. It includes two-month free subscriptions for those car owners who serviced their vehicles at particular stations. It has targeted Hispanic stations and extended free trial along with low subscription fee.
So, these are the program through which Sirius XM is trying to grow its subscriber base. The company is making used cars an equally better option for car buyers. So, if you are looking to buy a car, used cars are a good option.
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