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The ‘Netflix’ model of car ownership is on the rise for drivers who need wheels–without the debt | AmeriDrive

After Tiffany Ford McLemore’s car was destroyed in an accident, the single mother of four needed a new one. Quickly.

Yet she didn’t want to take out another auto loan and so she researched her options. That’s when she stumbled on Flexdrive (proud partner of AmeriDrive), which calls itself Netflix for cars, and is one of several new companies offering vehicles through a subscription.

“I love the flexibility,” Ford McLemore said. She now drives her children to sports and band practice in a 2018 Volkswagen Jetta.

Automakers, dealers, and start-ups now offer car subscriptions as an alternative to the traditional financing model, which increasingly involves going into significant debt. The services typically charge a flat monthly fee that bundles together all the disparate expenses of car ownership, including insurance and maintenance.

“There’s a reason consumers are gravitating toward these services — what’s out there right now isn’t very good,” said Gary Hallgren, president of Arity, a technology start-up founded by Allstate.

The average monthly car loan payment is $533 for new cars and $397 for used vehicles, according to Edmunds, which provides information on the auto industry. The typical person takes nearly six years to pay off their car loan — and nearly a third of the trade in their vehicle before they’ve paid it off and pick up another loan.

People are overwhelmed by modern life and its seemingly infinite choices, said Philip Reed, an automotive writer at personal finance website NerdWallet. “If someone says, ‘Here’s your car. It’s $350, and that pays for everything,’ it’s appealing,” he said.

“The millennial generation grew up in a world of subscriptions, and they don’t feel it’s odd at all to consume an automobile in the same fashion,” people said.

Is a Subscription Right for You? 

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What We Know So Far About Car Subscription Services – AmeriDrive.

Car subscription has been having a lot of buzz lately with experts in the auto industry explaining why this new program will be changing the auto retail game in the next couple of years. Thanks to the growing maturity of the “Millenials” subscriptions will continue to grow in popularity, naturally. There is definite appeal, especially to millennials, in not being tied down to one single vehicle.

To address this coming shift in buyer behavior, many carmakers have launched pilot subscription services. AmerriDrive launched in June, 2018 in the Florida market Access by BMW launched in Aril, 2018 in the Nashville market. Mercedes-Benz Collection is testing the waters in Nashville and Philadelphia, and Audi Select went live In the Dallas-Fort Worth metro in late September. Ford, Lincoln, Porsche, Volvo, Jeep, and others also have programs in operation, or close to launch.

The AmeriDrive program’s fee starting at only $98 per week covers optional insurance and maintenance and repairs and allows subscribers unlimited miles per month. Subscribers also have the ability to swap in and out of any vehicle, from a sedan to an SUV  with no long-term commitment. You may apply here.

As with any new paradigm shift, car subscription services will take time to iron out the wrinkles and figure out appropriate price points and service levels that will lead to long-term profits. The demand for subscription services seems to be real. Now it is up to the service providers to work on profitability and long-term viability.

 

Read More at the CBT Automotive Network.

Learn How AmeriDrive Works here.

AmeriDrive has partnered with Lyft! | AmeriDrive – Your car subscription service.

AmeriDrive continues to increase its footprint in the car-sharing industry with its new partnership with Lyft.

Up until recently, consumers only had two options when it came to acquiring an auto: buy or lease. Now a third alternative is gaining momentum known as vehicle subscription, giving consumers access to a wide selection of automobiles by allowing subscribers to have exclusive use of a car based on a monthly fee. The AmeriDrive program offers Lyft drivers yet, another alternative without the commitment, plus a $350 bonus incentive to those who sign up through AmeriDrive.

“Car subscription takes away the hassle and stress of the car buying process,” said Agustin Perret COO of AmeriDrive, “People need an alternative that is easy and flexible since over 80% of people will trade-in their cars every few years. Car subscription fits that lifestyle while also giving a new generation of consumers a different, compelling way to drive as our slogan says “Simply Drive”.”

Ameridrive has access to more than 2,500 used vehicles, including a fleet of new cars. Members are loving the perks of having a car subscription instead of buying or leasing. Contrary to traditional ways of car ownership, AmeriDrive offers unlimited miles, unlimited warranty, and roadside assistance, as well with unlimited swaps in order to fit their lifestyle. This way, drivers all around South Florida are able to start working without a downpayment, commitment or even worry about repair bills.

“You have the option to drive an economy car if you want to or treat yourself, if you want to do that one week” said Ryan Rea, current member of AmeriDrive, “Even, if your family comes into town, you are able to upgrade to a minivan for as long as they stay and get them all in.”

AmeriDrive offers the ultimate car experience while providing driver’s an extraordinary ride.

You can also see how AmeriDrive’s Car Subscription program works, or apply for the AmeriDrive’s Car Subscription Program here.

Call us at 833-FLO-FLEX (833-356-3539) and ask us about the Lyft’s “New Driver” exclusive bonus with AmeriDrive in Florida.