Posts

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.

There’s Got to Be a Better Way

Click here to find out!

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.

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.

Your Next Car Could Be A Flexible Subscription Model | AMERIDRIVE – A Different Way To Drive.

CAR SUBSCRIPTION
In developed markets like the UK and the US, subscription-based ownership models have already crossed 10% of monthly household incomes. We are now subscribing for literally everything, from mobile phone packages to even shaving blades…Dollar Shave Club, anyone? Not to be outdone, the automotive industry is responding by developing its own unique, customized subscription offerings.

WHO WANTS CAR SUBSCRIPTION?
They seem tailor-made for groups like new immigrants, expats, and millennials who want simple, economical, hassle-free temporary mobility solutions with easy cancellation and return policies. They appear made-to-order for vehicle enthusiasts who are keen on trying out a new car every month, without necessarily burning a hole in their pockets. And, finally, they seem ideal for the average customer who would, one imagines, be pleased to avoid dealing with cumbersome car ownership/rental/lease processes.

WHAT IS THE NEED FOR A CAR SUBSCRIPTION?
In this, it fulfills a long, unmet need since duration’s of other formats span minutes/hours (carsharing), hours/days (rentals), 2-3 years (leasing), and 3 years to a lifetime (outright purchase).

Not only does the single bill cover the cost of vehicle fees but it also covers registration, warranty, insurance, delivery, maintenance and repair services, and concierge services.

QUICK PREDICTIONS
Early invitees to the feast were Verizon, Netflix, Spotify, and Amazon Prime and now it’s time for newer guests like Canvas, Passport, and Flexperience. Together, they’re serving up the final course: a global, on-demand subscription economy.

SEE FULL ARTICLE HERE.