Before Netflix existed everyone went out to theaters and now to watch the movie you want you don't even have to leave your couch. The idea of a car subscription as a service is changing mobility in the same way. Customers who currently own their vehicles have to deal with constant additional costs like insurance and maintenance as well as possibly needing to take out loans to pay for everything. Car subscriptions would offer all the benefits of owning a vehicle while providing new options. Some services provide an option to change cars while others will pay for maintenance and insurance. Different companies, dealerships, and car-makers are attempting different types of models to attempt to gather for interested consumers.
According to Edmunds which deals with information regarding the auto industry, a typical car loan in the United States takes six years to pay off and any service and customers are going to love any option which does not make such heavy demands on the pocket or will offer more choice. Generally, a subscription service offers for a flat monthly fee, access to a car, its insurance and maintenance for an all-inclusive fee. Subscribers will not have to worry about incurring having to pay off a loan, heavy one-time costs like a big downpayment or hefty insurance premiums.
It does not mean that car ownership will be suddenly cheaper, but the service does make life and day to day financial juggling simpler.
One example is Flexdrive, based in Atlanta, accompany with over 9,000 subscribers, with 600 to 800 new ones being added every month. New subscribers can order a Flexdrive on its app within minutes after enrolling without any contract or credit check. All they need is a clean driving record, three years’ experience on the road and a credit or debit card in their name. They can then pick up a car from the nearest dealership that is associated with Flexdrive. During vacations, it is possible to return the car to the dealership and pause payments till you return instead of simply parking the car in your garage. Subscribers do have to pay a refundable deposit, but there is a lot more flexibility and they can have a Toyota Yaris for USD 400, while a Porsche Cayenne would cost USD 1,500.
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