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.
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