Spotawheel Turns to Used-Car Subscriptions to Fill Europe's Auto Finance Gap

Sifted reported that across Greece, Romania and Poland around 38 million cars have no active loan, lease or dealership financing attached to them, according to data compiled by the European Automobile Manufacturers’ Association. Owners likely bought those vehicles with cash savings or personal loans. European Central Bank and European Banking Authority data show residential mortgages dominate European bank balance sheets, typically accounting for 70-75% of household lending, while consumer credit, including auto loans, makes up only a small portion of the remainder.

Spotawheel founder and CEO Charis Arvanitis said banks often lack the resources and capacity to assess a used vehicle’s condition, maintenance needs and future resale value, and instead evaluate loans on the consumer’s profile. “In much of this market, a car loan is assessed more like a credit card than a mortgage,” Arvanitis said, adding that the decision centres on the borrower with limited recognition of the vehicle’s value. Leasing companies, he said, build their models around scale and simplicity and serve an established segment representing around 5% of total fleet needs.

Chief marketing officer Renos Kattorits said the industry’s focus on electric vehicles and ride-hailing misses the reality of the used-car market. “EVs and ride-hailing are what Europe [often] talks about, but the used car is what most of Europe actually drives,” he said. The customers Spotawheel serves are “the normal economy: people on a salary, seasonal workers, sole traders, a business with four employees,” Kattorits said. “They weren't left out because they're risky. They were left out because nobody built a product for them.”

Kattorits said used cars cannot be underwritten from a spreadsheet. “You have to own it, price it, fix it and be able to sell it again,” he said. Arvanitis added that two cars of the same model and year can have very different economics because of mileage, condition, equipment and history, and that physical inspection is essential even though market prices provide a starting point. Spotawheel takes ownership of the entire operating chain, from sourcing and refurbishment to subscription management and final resale.

The company offers monthly subscriptions starting from €250, with fees varying by car model, age and contract type. Customers can trade in their current vehicle for a different car as their needs, lifestyle or monthly budget change, and Spotawheel also allows outright purchase. The company said it has more than 6,500 active subscriptions.