Image source: Carlos 4916 via Pixabay.com
Think of how you subscribe to Netflix or Spotify. You pay a monthly fee, and you get thousands of movies, TV shows, and music to satisfy your binge-watching and listening needs. Now, think of what you can get if you subscribe to your car instead of buying it.
According to this report by Bloomberg, Volvo in Germany is doing just that for their customers. When you subscribe to your car, you pay a few hundred dollars per month for the car, car insurance, taxes, roadside assistance, as well as towing from your home to the shop and even storing your winter tires for you. The difference between this and a traditional lease is that you won’t have to pay any down payments or end of lease fees. The monthly price ranges between about $561 and over $1000 depending on which type of subscription you get. The downside is that overall it’s more expensive than leasing.
Other Carmakers Offering Subscriptions Too!
Not only is Volvo trying this new subscription service for cars, but Ford offers it in certain cities in California including Los Angeles and San Francisco. Their monthly subscription fees are a little cheaper than Germany’s since they start out charging $405, before taxes.
Other car makers are trying a similar service including Porsche, Mercedes Benz, and Cadillac. Although they are letting people in certain cities try this new service out, what they are letting drivers do is trade their cars in for better models for around $1000 to $2000 per month a few times per year.