A New Way to Drive a Car – Car Subscription Services

There are many companies that run on a subscription service business model, from magazines to Netflix. But have you also heard of a car subscription service? That’s right. This is another alternative of driving a car without the hassles of loans, big insurance payments, etc. To know if a car subscription service will work to your situation, then read on…

A car subscription service, as said before, is another alternative of driving a car. And this is different from buying a vehicle or leasing one (although the latter is a bit more similar to it). The main idea of a car subscription service is that you get to use a car (or cars) for an all-inclusive monthly fee, just like you would pay for your monthly Internet subscription, for instance.

This all-inclusive monthly car subscription fee will also cover other things such as insurance and regular maintenance. While car subscription services are a novel business tactic in the commercial auto world, they’re already operating in a number of places in the United States.

For instance, General Motors has recently launched the BOOK car subscription service. This allow their clients to pay $1,500 a month, plus an upfront online intiate fee of $500. In this service, among the models offered include Cadillacs which range from Escalade to CTS-V. Once the subscriber has chosen a car model of their choice, it will be finally brought to them by a concierge… nothing beats the look and the whiff of a brand-new car, doesn’t it?

Some car subscription sevices have long-term rentals, which allows subscribers to swap cars weekly or monthly. In the case of General Motors’ BOOK service, subscribers are allowed to change vehicles up to 18 times a year by using their mobile app.

The competition among companies offering car subscription service is small at the moment, but is surely growing. Another company, Clutch, allows users to pay a monthly fee that range from $800 to $1,300 by using their app. The higher the monthly rate, the more luxurious cars that you can have access to. Once you have selected a car model that you like, a concierge service will bring the car to straight to you.

The pros of a car subscription service:

Certainly, there is a big convenience in subscribing to drive a car. Below are a number of other advantages of a car subscription service:

A car subscription service allows users to drive different cars. If you have a particular purpose for driving a car, you can choose which type you like. If you are going on a camping trip, for example, you can choose an SUV. Planning for a night out? Then you can swap your SUV for a luxury sedan. A car subscription service certainly allows flexibility for the drivers.
Total convenience. Most car subscription services come in a mobile app. With just a few taps away on your smartphone, you can have your car delivered straight to you by a concierge service.
Subscribers are exempt from the hassles of insurance payments and maintenance expenses as they’re also included in their monthly fees.
Potential cost savings. You don’t have to deal with downpayments or other service charges.
The fees are fixed, so no need to negotiate.
Subscribers can cancel the service any time. They can subscribe again for the same service provider without getting charged for an additional fee.
It comes complete with maintenance and roadside service.

The cons of a car subscription service:

For some, a car subscription service might be too costly. It’s kind of a luxury service that not everyone could afford.
Drivers won’t be able to utilize their vehicle to the hilt if they’re using it for a week or on a quick day trip.
If you plan to own a car, you won’t be considering this type of service. You’d rather pay it off and become free of the monthly payments for a number of years, and own the car all to yourself.