In 2018 the average consumer is no stranger to a subscription service. From Spotify to Netflix, odds are you have at least one subscription service. The auto industry has noticed this and is thinking about getting into the game. That’s right, if you need a car you can now subscribe to one.
Now, we’re sure many of you are thinking, wait how is this different than leasing a car? And that’s a very valid thought. When you lease a car you are responsible for obtaining car insurance and staying up on your maintenance. These up-and-coming car subscription programs include all of those things within their monthly fees.
Oh, and did we say subscribe to a car? We meant cars. Most of these subscription companies allow users to trade our their car for another model whenever they want. This is particularly popular amongst people who pay for the higher-end car packages. Can’t afford a McLaren? You can if you subscribe to one!
Of course, these subscription models have to be profitable. Which is why they include stipulations designed to ensure that their cars survive the years. Most subscriptions include a limit on the miles you can drive each month and have expensive penalties if you happen to go over. Luckily, many allow you to roll over your extra miles from month to month. So if you plan correctly, mileage should never be an issue.
Canvas is a car subscription company operating out of San Francisco. The Insurance Journal spoke with their CEO, Ned Ryan, about this new trend. “People are generally changing the way they are working, they are changing the way they are living and they are generally changing the way they are consuming things,” said Ryan. “Subscriptions are going to be a very large and growing share of how people consume automobiles.”.
For current car owners, this may not seem like something they need. For many, however, a subscription service is a god send. Not only are you getting a car, but you’re getting car insurance too. All you have to do is worry about a flat monthly fee. If you get a sick of your car, you can trade it in for a new one!
The subscription model has been so successful in so many different industries, that it’s no surprise to see it continuing to gain traction in different areas. While subscription car companies are not yet mainstream, it is not unreasonable to expect to see more popping up in the very near future.