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Your Next Car May Not Be an Owned Vehicle

Most of the people are willing to change their old vehicle once a newer, better model is launched. The car companies also take this factor into account and they are now willing to offer better and flexible options. It may be possible in the near future, to get a subscription for a new vehicle, instead of owning it. That way, you will always be able to enjoy the newest vehicles and would be able to change them often, as per your requirements.

Other than having the liberty to choose your car at will, this subscription will also allow people to use their vehicles since the down payments are quite heavy for the new cars, along with long lease lengths. The new subscription offers from car companies will make the access of vehicles much easier. Automakers are trying to make the leasing process really simple and easier.

Volvo’s new car, XC40 SUV is expected to be launched later this year and the users will be able to pay a minimum fee of $600 per month for the insurance and maintenance of the vehicle.

Subscription models, which provide more flexibility than a typical long-term lease, may give automakers a leg up in a retail landscape increasingly shaped by ride-hailing services. In the short-term, automakers are hoping the new services will generate more business as the post-recession sales surge tapers. In 2017, the industry reported the first decline in new vehicles sales in eight years.

Ultimately, subscription models could prime consumers to expect greater variety. Why should they stick to the same set of wheels when they actually need an all-wheel-drive SUV for winter, a convertible for summer and a pickup truck on moving day? This could speed the march toward the mobility-as-a-service model, where people only pay for the transportation they use.

Available in New York, Dallas, and Los Angeles, BOOK by Cadillac lets subscribers rent different cars up to 18 times a year, starting at $1,800 per month plus a $500 initiation fee. They also get full access to the automaker’s lineup of sports cars, sedans, and SUVs, as well as a “white-glove concierge service” that delivers and retrieves the vehicles at a time and place the subscriber sets through the program’s app. Users can keep the vehicle for up to 30 days, with an option to renew, and are allowed 2,000 miles per month. Between loans, the concierge service stores the unused vehicles on its lot and handles maintenance and detailing for the next user.

The Porsche Passport program, which starts at $2,000 a month, allows customers in Atlanta to sample up to 22 different models in its portfolio. Members can request cars using an app designed by Clutch Technologies, Porsche’s Atlanta-based technology partner that also handles delivery. The average turnaround time is about two hours, and users can swap vehicles as often as they want. The cars are stored at a facility in Metro Atlanta when they’re not rented to subscribers. Service and maintenance are taken care of by two local Porsche dealerships.

Author: Jaclyn Trop

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