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.