What is the Car Subscription Model?
A car without a commitment – this is one of the simplest ways to describe what the car subscription model is. This is a great alternative to buying brand-new or leasing.
Subscription-based models are popular in almost all facets of the economy, and car ownership is no exemption. From affordability to flexibility, a car subscription can offer plenty of benefits, making it attractive.
Want to know more about car subscription? Keep on reading and we'll talk about some of the most important things you need to know.
What is a Car Subscription?
At its core, a car subscription is just like any other subscription business model. The customer pays a recurring price in exchange for a service. This is focused on customer retention instead of customer acquisition. The goal is to make the customers stay longer for the business to be more profitable.
With the best car subscription, you will be paying a flat monthly fee. Depending on the provider, the fee can also be paid quarterly, bi-annually, or annually. This is already inclusive of other fees, including insurance, roadside assistance, and routine maintenance.
While the subscription contract is active, you are free to swap your car. This means that you can be driving a different brand or model every month. Every company will have its unique policies dictating how often you can change your car depending on your chosen subscription. This is unlike in leasing wherein you will be tied to the same car for a long time.
The subscription model is a shared mobility service. It operates under the notion of temporary ownership. Why would you buy a new car when you can enter a subscription model instead and drive a different model every month? This is perhaps one of the things that make a subscription model appealing to many.
Who is a Car Subscription For?
In a nutshell, a car subscription is for people who do not have the luxury of financial resources to purchase a car outright. Aside from those who cannot buy a brand-new car, this is also for those who are not into the long-term commitment that is required when you enter a leasing contract or buying a brand-new car.
It is a great choice for millennials, expats, and even those who are on a long-term vacation. This is also recommended for car enthusiasts who would love to try a new car every few weeks without spending too much. More so, it is for you if you like to save money since it is all-inclusive.
How to Choose the Best Car Subscription
The options for a car subscription will be almost endless. A quick online search will reveal a long list of results. To make the right decision, below are some of the most important things to consider.
- Consider the Duration: For the best flexibility, consider how many months is the minimum subscription. Some will offer a subscription for one month while others may offer a minimum of three months.
- Check the Cars Covered: When choosing a car subscription service, consider the car brands and models that are included. It will be best if you have diverse options.
- Look at the Price: The prices will vary from one provider to the other. This also depends on the cars that are covered. For basic cars, the price can be as affordable as $500. On the other hand, for luxury cars, the rate can go as high as $3,000 monthly.
- Read Reviews: It will also be good to consult online reviews and learn from the real-life experiences of other people. Their opinions will make it easier to narrow down the possibilities.
What are the Best Car Subscription Services?
While we cannot give you a definitive list, below are some of the top options that should be on your radar.
Care by Volvo
If you are a fan of Volvo and you want to try many of their cars, this is a promising option for a subscription. One of the best things is that they offer a 30-day risk-free trial with free insurance. Their open-ended and premium packages cover 24 months. Pricing starts at $700 per month. Every member is allowed to drive 15,000 miles annually.
Go your own way – this is what Flexdrive promises to its customers. They have partnered with dealers across several states to offer more options for their members. One of the most important requirements before signing up is that the member should be at least 25 years old.
Hertz My Car
You might all know Hertz as a popular car rental company. Good thing, they are also offering a subscription service. Hertz My Car aims to provide a hassle-free experience by giving customers a wide range of cars. The monthly subscription fee already includes maintenance and liability coverage. The price is $999 per month for small SUVs and full-size sedans. On the other hand, it will be $1,399 per month if you want SUVs, large trucks, and luxury cars.
Want to drive an entire range of luxury vehicles from Mercedes Benz? Then you should consider MBZ Collection if you are looking for an exceptional car subscription business model. Membership plans may vary depending on location but take note that you have to pay a one-time activation fee. This is inclusive of liability insurance up to $1,000,000.
This is another subscription plan for those who are looking for a fleet of luxury cars. They have a seamless mobile app, which can make the process a lot easier. This on-demand service also offers concierge delivery. Your next Porsche car may just be a click away!
In sum, a car subscription model is a great alternative to traditional car ownership. As a shared mobility service, it is affordable and flexible. The fee is all-inclusive, which comes with repair and insurance, among other incidental expenses. The best thing is perhaps that you get to enjoy a different car every now and then. You can drive a sedan for a month and change into SUV for another month.
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