Buying a Car is so 2018. Subscribe to a Car Service Instead
Now there’s one more way to purchase a vehicle to drive. Well, technically, you are not purchasing a vehicle to call your own and you’re not leasing it either. Instead, you are signing up for a vehicle subscription service where you pay a monthly fee, keep the car at your place of residence, drive it as much or as little as you’d like, return it when you’re done, and then pick out another car.
Depending on the brand, the monthly subscription service may or may not include costs of auto insurance, auto repair and maintenance, roadside assistance and more. Similar to purchasing a new or used vehicle, buyers of subscription services must also pass credit checks and meet other qualifications.
Vehicle Subscription Models Are the Current Trend
With new vehicle sales going south in recent years, automotive manufacturers have decided they had to re-invent the way people got their cars. Tesla developed the subscription model for its battery-powered fleet of electric vehicles years ago when it went to market. By bypassing the middleman, aka the dealership, customers could purchase the vehicle straight from the maker saving them time and money (in theory at least).
Subscribe to Your Next BMW
Initially many automakers blew off or scoffed at this new car buying business model. In time, however, some of them decided to give the new trend a try. BMW was one of the first established lines of auto manufacturers to try out the subscription-based business model. Named “Access,” luxury automaker BMW offers three tier plans for sedans, hybrids and crossovers. Subscriptions include auto insurance, vehicle maintenance, and delivery service so there’s no haggling over pricing.
BMW “Access” Has Cost, Location Limits
Though the name of subscription program is Access, this is misleading as the trial program is only offering to those who live in or near Nashville, Tennessee. Moreover, the program cost ranges from $1,200 to $3,000 a month, well out of the price range for most people even BMW enthusiasts. Ironically, the program was intended to appeal to new drivers or those who wanted to “purchase” their first BMW. However, it is unlikely to attract this population due to its steep buy-in costs. It’s worth mentioning that true BMW fans can get a thrill out of switching from car to car month after month.
Vehicle Subscription Services Begin Going Mainstream
Not to be outdone, other auto makers have jumped on board the subscription model, including Mercedes Benz, Audi, Porsche, Cadillac, Volvo, Lexus and others. Most programs are similar in regards to how they operate. The Mercedes Collection mirrors the BMW Access plan in almost every way including the exceedingly high price point. It too is only offered in Nashville. (Update: Mercedes Collection is now offered in Philadelphia.)
A Comparison of the Most Common Subscription Brands
Audi’s plan is a bit different in that it offers five distinct models for its subscription model and does not require a long-term commitment. That is, you can subscribe month to month provided you give a 30-day notice. Its cost is about $1,400 per month.
The only other noticeable standout among the trends is Volvo, which offers coast to coast, national service that is not limited to one or two select cities. In addition, Volvo’s pricing is about half the other major players, about $600 to $800 per month, but it does require a two year commitment or there’s a penalty. (There is no deposit fee.) To date Volvo offers this service for two models of its vehicles, a sedan and an SUV. The subscription cost includes basic Volvo automotive repair and maintenance.
How Will the Vehicle Subscription Trend Impact Auto Repair in San Diego?
Though it is likely too soon to determine how this new trend will impact independent auto repair shops, experts in the industry are monitoring the situation. Some experts believe that auto repair shops may want to consider how they offer their services and consider subscription auto repair models instead of standard, piece by piece auto repair models. For instance, instead of offering Cheap Oil Changes in San Diego, auto repair shops can offer “Annual Oil Change Subscriptions” that include two oil changes per year. This way of re-packaging basic auto maintenance services could also help increase customer loyalty.
The verdict: For now at least it’s too soon to say what will come of this new car “buying” trend. Will subscribing to brand-specific vehicles be the way everyone gets their cars in the future, or will vehicle subscription services be just another option like leasing? Either way, the car industry is constantly changing and it remains to be seen whether this is a take-over trend or simply another choice in how a driver obtains a vehicle.
