For years now, people have had two basic options when looking to obtain a new car. They could either purchase the vehicle outright or lease it for a few years. According to Slate, however, there is now a third option that may prove to be more enticing for those who prefer luxury vehicles.
There are a handful of car manufacturers, including Cadillac, Porsche, Ford, and Volvo, that are now allowing customers to obtain car subscriptions.
Rather than committing to buying a car or leasing one for a certain amount of time, people can pay a monthly fee to “subscribe” to certain vehicles. It isn’t particularly cheap—Cadillac, for example, is charging $1,800 per month for its subscription service—but it will allow people to switch cars up to 18 times per year without having to commit long-term. In most cases, subscription services will also come equipped with vehicle delivery, insurance, registration, roadside assistance, routine maintenance, and more, which means subscribers really won’t have to do anything other than make regular payments and enjoy the freedom.
Most of the car companies that are currently offering car subscriptions at this time are doing so in major cities like New York City, Atlanta, Los Angeles, San Francisco, and Dallas.
However, the thought is that car subscriptions might turn into a long-lasting trend, especially among millennials who want to enjoy the benefits of having a car sometimes without committing long-term. People will be able to sign up for a subscription at their convenience, use it for a couple of months, and then send it back. As we mentioned, subscribers will also have the liberty of switching up models throughout their subscription period. Porsche, in particular, allows you to switch vehicles as often as you want – for a $2,000-per-month price tag.
For now, the high price associated with car subscriptions might keep the average person away.
However, it’s safe to assume that more and more drivers will be intrigued by the idea of enrolling in a car subscription once the practice becomes more commonplace. Not only could this change the way we drive, but it could give car manufacturers a new source of revenue moving forward.