SK Rent-a-Car said on the 25th that "Tago Pay Plus," a mileage-based rate rental product, surpassed a cumulative 1,000 contracts just three months after its launch. The company said this is because ways of using cars are changing, with more drivers opting for short, on-demand use rather than driving every day.
Tago Pay Plus is designed so customers can choose an annual contracted mileage to match their driving patterns, and it is cheaper than general rental car products for drivers who usually drive short distances. Customers pay only the base fee up to the contracted mileage, and 500 won is added per kilometer beyond that. Contract terms are 12, 18, and 24 months.
Typically, long-term rental car products allow customers to choose an annual contracted mileage starting at a minimum of 10,000 kilometers (about 830 kilometers per month). But Tago Pay Plus offers a choice of 5,000 kilometers or 7,000 kilometers per year. According to SK Rent-a-Car, a person who drives about 400 kilometers per month can choose the 5,000-kilometer plan per year, and a customer who averages 600 kilometers per month can choose the 7,000-kilometer plan, which is cheaper than general long-term rental car products.
SK Rent-a-Car first launched the product in Dec., and in just over three months it surpassed a cumulative 1,000 contracts. By vehicle type, compact and small sport utility vehicles (SUVs) accounted for a high 70% of contracts. In addition, women made up 41% of customers who chose Tago Pay Plus, a higher share than among general long-term rental car users.
An SK Rent-a-Car official said, "Tago Pay Plus is designed so customers who want short-term, short-distance use can enjoy the benefits of long-term rental cars," adding, "We will continue to introduce products that match customers' usage patterns."