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Everything You Need to Know about Auto Subscriptions | AmeriDrive – Car Subscription in Florida

Auto subscriptions, a sort of low-commitment way to get behind the wheel of new or late-model cars, are being touted as a no-hassle alternative for people who just aren’t into long-term relationships.

Azarias Reda, CEO of Carma Car, says the program is ideal for drivers who don’t want to commit to leases, which are typically for 36 months or more but want continual access to late-model cars.

Patel calls the subscription a “hybrid model” that spans the gap between daily rentals and long-term leases. “It’s not by the hour, not by the day,” she said. “It’s for someone looking to have a car for two or three months.”

She cited the example of a 2013 Mini Cooper. On a three-year lease, the company would charge $433 a month (plus insurance), while on a daily rental basis it would cost $1,350 a month. Such a car would be available on subscription for $749, including insurance.

Reda said auto subscriptions are available in two tiers: high-end programs such as the Book by Cadillac and Porsche Passport, which are attractive to people with high disposable income who want to sample a variety of models. Typically, these programs require a one- to two-year commitment.

Alternatively, Carma and other third-party providers, such as AmeriDrive put the emphasis on flexibility and lower cost by offering programs as short as one month and cars that aren’t brand new.

Attitudes toward car ownership model are rapidly changing, Reda said. Technology quickly falls out of date. Warranties expire. Insurance can be a hassle. Depreciation takes its toll.

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Sounds like a dream come true? Are you ready to get your next vehicle with AmeriDrive’s Auto Subscription in Florida? Apply here.

Car subscription services: A slow, expensive start — but the potential is huge. | AmeriDrive – Your Car Subscription in Florida

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they’ll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group.

Cable TV started out cheap with basic offerings and then got expensive. The auto industry’s subscription offerings are new, but they’re starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers’ lineup.

Subscription services also point the way toward an ownership-free auto experience and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to “get” them. Lincoln’s subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled.

Last month, Cadillac announced it would “temporarily pause” its $1,800-per-month Book subscription service for “adjustments” as of December 1. According to the Wall Street Journal, “Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company.”

The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they’ll find that sweet spot, but they’re not there yet.

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Why are today’s drivers turning to car subscriptions?

Fewer Americans own a private automobile today than they did a decade ago, according to statistics from the U.S. Department of Transportation. This trend, sometimes referred to as “peak car”, is commonly explained by pointing to social-media-obsessed young people who are delaying getting a driver’s license and buying their first car. Some analysts suggest that car-sharing and ride-hailing services provide a more convenient alternative to getting around than car ownership. But — maybe it’s deeper, a fundamental shift in consumer mindset about the hassles associated with car ownership.

One of the newest and most powerful innovations is the monthly car subscription. Imagine gaining access to a vehicle without having to ever step foot in a car dealership, haggle with a car salesman, visit an auto mechanic, shop for car insurance, worry about breaking down, or periodically buy auto parts or a new set of tires. Each one of these tasks requires money and attention, but most of all precious time we could use more thoughtfully. Besides, for many of us who lack a deep expertise in the art of negotiating a deal and the finer points of auto maintenance, buying and owning a car leaves us vulnerable to those who might take advantage of our gap in our knowledge. What adds insult to injury is the fact that a car is a depreciating asset. You might like that new-car smell, but the moment you drive a car off the dealership lot, the vehicle’s value has dropped by 10–20%. How about leasing? While a relatively low monthly lease payment might seem attractive, it’s only an alternative ownership scheme in which the depreciation is baked into the deal. Dealerships, as a standard practice, obviously modify the terms of the lease deal, such as the mysterious “money factor” in every lease contract, to their benefit.

Today we stream media rather than buying DVDs and CDs. We get clothes, food, and toiletries regularly delivered rather than trudging to the mall. Now, thanks to car subscriptions like AmeriDrive, you can shop online for a car, make your selection, and pick it up the very same day. Time-savings and convenience factors alone are winning over new generations of drivers. The cost for a monthly car subscription, usually in the neighborhood of $400 to $500, includes maintenance, unlimited miles, and roadside assistance. Compare that to the $706 monthly average cost in 2017 for owning a car, if you drive 15,000 miles, according to AAA. That $706 doesn’t include depreciation, which in the first year alone can represent as much as 30 percent of the car’s value.

Today’s new breed of customers are leading this revolution, but automakers are not far behind. Smart industry leaders have been quick to shift their business model from vehicle manufacturing to becoming so-called mobility providers. The monthly Canvas service operates as a subsidiary of the Ford Motor Company, just one of about a dozen automakers offering a subscription service.

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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.

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The future of Car Ownership is changing | AmeriDrive – Your Car Subscription Service

Alternative vehicle ownership is becoming increasingly popular among consumers.

The traditional idea of car ownership will not go away overnight, but the industry will see a transformation in the next few years. So, what will ultimately cause a decline in vehicle ownership? Specialists say there are several factors such as ridesharing, subscription services, and autonomous vehicles among other alternative ownership models.

What do dealers make of this? Well, only 1 in 10 dealers see these trends as a threat to their business. Subscription services offer dealers a huge opportunity because it gives them another option to add to their business plan. It also allows consumers to experience multiple vehicles within your brand, and it will lead to an increase in revenue from fixed-ops as well.

If you are interested to continue reading about this story, head over here to read more.

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

We Are Offering You Brand New Cars! | AMERIDRIVE – A Different Way To Drive.

AmeriDrive is adding brand new vehicles to its fleet!

You have spoken, and we have listened! We have expanded our inventory to meet your lifestyle perfectly!

With over 2,500 cars available in Florida, we continue to add BRAND NEW vehicles to our fleet. Find any car you could ever imagine and if we don’t have it just request it! With our subscription, you have the choice of riding in a used 2016 Volkswagen Jetta and then upgrade to a never before driven 2019 Nisan Rouge.

So, if you’re thinking about buying a new car but you don’t want to commit yet this is a perfect alternative.

Subscribe to it, fall in love with it!

How does it work?

Basically, “almost” the same as before. Since these vehicles are intended to be for a longer term than our regular 1 week minimum, now 1-month minimum, we will require a bit more information about you, just to make sure you are a real person and not a robot. Just fill out the information you feel most comfortable sharing and we will contact you with the following steps.

You can Apply Here to be one of the first to enjoy these awesome vehicles at crazy low prices!

Or check out here all of the BRAND NEW VEHICLES available in Florida!

Florida Fine Cars Has Launched AMERIDIRVE! | AMERIDRIVE – A Different Way To Drive.

South Florida Sees Growth of Vehicle Subscription Services as AmeriDrive Launches Program Through Partnership with Flexdrive.

AmeriDrive to leverage Flexdrive because of its technology that enables dealers to quickly see car subscription program profitability, provide consumers with alternative to buying and leasing cars.

See full article here.