Car Subscriptions Are Gaining Popularity With Drivers

September 5, 2018

© Maksim Marchanka Dreamstime

When it comes to obtaining a car, there are two ways to do it, buy it or lease.  However there's a third option on the way called car subscription.  Unlike a purchase where you make monthly payments until you own it, or a lease where you swap out a new ride every couple of years, car subscription is all about options.  It works like any other subscription by paying a monthly fee for a selection of vehicles you can keep or swap at your convenience. So if you need a truck for the weekend, you swap it out and swap back to an SUV by Monday in time for the kid’s soccer practice.  Pay a little more or less a month for different categories of vehicles. Insurance and maintenance is included and offer a set bucket of miles. While many third party services, like Flexdrive, have been offering subscription services for some time, now car manufacturers are seeing the value. Ford is testing a pilot program of used, once-leased Ford and Lincoln models as subscriptions that cost anywhere from $379 per month (for a Ford Fiesta subcompact) to $1,125 per month (for a Lincoln Navigator luxury SUV). BMW, Mercedes and General Motors’ Cadillac brand also are offering subscription programs, but those are primarily catering to affluent drivers who want to try out a variety of expensive

SOURCE: Associated Press

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