Would You Use a Car Subscription Service?

"hethoughtofcars" (hethoughtofcars) 04/09/2018 at 21:45 • Filed to: None

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Hooniverse asked this question today. Besides being curious what Opponauts think, my reply was marked as spam by disqus (!!!) so I’m posting it here. If you don’t get a chance to read the original article (or know what a subscription service is): essentially you would pay a flat monthly fee and get the usage of a car manufacture’s vehicle. However, unlike a lease or buying, you have the option of switching for a different model from the same manufacturer while a member of the subscription service. Hooniverse uses the example of getting an X4 and, after realizing the error of your ways, switch to an M2. These are my thoughts:

I really like the subscription idea!! Currently plans are skewed as only high end luxury companies like Porsche offer them and are requiring thousands and thousands per month. With less premium brands I think it would work, though. It’s not much more than a lease, has maintenance covered, and you get to switch vehicles when you want? Sounds great to me! Even $600/mo for a Volvo doesn’t seem unreasonable. All the companies offer “attractively low” lease monthly payments, but almost always with a substantial chunk of money down and fairly strict mileage limits. For example: A base V60 ($40,590) is currently being advertised at $375/mo for 36 months but you’ll need to put down $3,555 upfront and are only given a 10k/year mileage allowance. And, of course, for any of these lease offers you’ll need immaculate credit to qualify in the first place...

I’d consider a reasonably priced plan with a company like Mazda (Subaru, Toyota, and even Nissan would probably be on the list, too) if they could keep the price point within the car payment/car payment plus insurance ballpark. $400-500 would be worth considering, and most certainly if it included insurance and maintenance. I currently own a 2013 370Z and love it, but the option to take a Versa or even Leaf for commuting on the weekdays, a fully loaded Maxima with leather and heated seats for the occasional long road trip, and/or a Frontier when hitting up Home Depot or the garden center is absolutely appealing. The Z is great, but can barely fit 2 people and a bag of groceries (not to mention a dismal 19 mpg premium while commuting, ugh...). Love the 6 speed manual, too, although not so much in stop-and-go. And then the fact that my wife can’t drive a stick shift... But it’s still a blast and I don’t want to lose it and have to settle for a Rogue or Sentra just because they make more practical sense in most situations. Life is too short to be stuck with bland cars.

Another good candidate for a subscription plan would be Mini with to its reputation for subpar reliability, and yet coupled with the BMW-esque repair costs. A JCW coupe for around town, Clubman for trips, and Countryman All4 for weekend journeys up the mountain would be a solid way to go.

Come to think of it, VW wouldn’t be a bad choice for a subscription, either.

Clearly the downside for a lot of people is that they’d rather OWN their car and stick with it for a significant time after paying it off. (Of course then you also have to deal with depreciation, maintenance, repairs, and eventually selling or trading it in.) But no one would HAVE to use a subscription service anyway, just like no one has to lease or finance a new car in the first place.

Tl;dr: This seems an upgrade to a lease in almost every way. It allows you to have the “responsible” car when you need it and the still get the “fun” car when you want. Not sure why there seems to be such opposition to it in the comments.

Original article here.

BlueMazda2 - Blesses the rains down in Africa, Purveyor of BMW Individual Arctic Metallic, Merci Twingo > hethoughtofcars 04/09/2018 at 21:48

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If they had a cheap one with only 320is, I’d be in.

For Sweden > hethoughtofcars 04/09/2018 at 21:52

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BMW wants $2000 every month for their subscription.

I checked National Car Rental in Chicago and found this:

You would have no maintenance costs, will move up to Executive Status after the first month (allowing you to choose a premium car), and will have primary insurance with the right credit card.

Wrong Wheel Drive (41%) > hethoughtofcars 04/09/2018 at 21:52

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No way would I want a subscription for new cars. I want it to be all highly modified tuner cars. And I have no responsibility for breaking it. Just think of all the fun I could have in a 1000hp supra without having to build it or worry about fixing it. And then the next day go pick up a low rider because why not.

Wagon Guy drives a Boostang > Wrong Wheel Drive (41%) 04/09/2018 at 21:59

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yeah, this! But I would also want them to have some more normal cars and trucks. Going to home Depot? stop by and grab a pickup on the way. Need to haul the neighborhood kids to soccer? Stop and grab a van.

TheRealBicycleBuck > hethoughtofcars 04/09/2018 at 22:04

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I sort of have that right now. It’s called Enterprise.

Unfortunately, the monthly payments are rather high, but I’ve been switching cars every few weeks. The big advantage is unlimited miles. I would bust a 10k/yr mile limit before 6 months was up.

themanwithsauce - has as many vehicles as job titles > hethoughtofcars 04/09/2018 at 22:04

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Not that I haven’t posted about it enough already, but I pay a little over 400/mo for a FoST, including insurance and gas. I overpay the loan to pay it off sooner but my bare minimum costs are around 425/mo.

I could see doing a rental service but.....it would be difficult to justify. I am interested in hearing more about some of the luxury car rental/sharing plans though. I would love to subscribe to a buick or cadillac plan. Or even possibly a lincoln plan. Luxury brands seem to give extra services so if I was in between cars and wanted to have a bit of fun, I’d subscribe to a brand for a year and try a few different cars for fun.

Ash78, voting early and often > hethoughtofcars 04/09/2018 at 22:06

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Honestly, it would feel like a hotel to me. And not in a good way. I like to “move in” and do mods, shove all my crap into the storage compartments, etc. I think it would provoke anxiety in me if I had to think about changing cars every week/month...or even year. But the reduced paperwork and relatively low cost of entry (vs trading in repeatedly) is a nice business idea. I just don’t like the attitude it fosters. We (the US) are an “ownership society” for better or worse, and anything that centralizes that ownership in the hands of the wealthy is a step in the wrong direction, on the whole. Reduced homeownership, increased car leasing, longer financing terms, house flipping, quick trades...all bad IMHO.

sm70- why not Duesenberg? > hethoughtofcars 04/09/2018 at 22:07

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If the price were right, I’d totally spring for this from a company like Audi, Cadillac, or Porsche who make a full lineup of cars I love. The reason? Simple. I get bored of cars really quickly.

KingT- 60% of the time, it works every time > hethoughtofcars 04/09/2018 at 22:07

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The VOLVO XC40 $600 for 2 years subscription actually looks like a fair deal for someone who can afford it. Only referencing Volvo’s program, wish they offered more than just that vehicle. If I am going to get a subscription I need more than one car option. Also, I would tolerate no more than 72 hour prior notice to reserve a different model., 24 hours would be great. I should not have to wait a week to get a different car.

K-Roll-PorscheTamer > hethoughtofcars 04/09/2018 at 22:09

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Nope! If I want a car, I want one that I can customize and make my own. Not some car I get to swap and switch like a damn iPhone.

hethoughtofcars > TheRealBicycleBuck 04/09/2018 at 22:11

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!!! UNKNOWN CONTENT TYPE !!!

Fair enough. I just think Corollas and Sonatas when I think rental cars, but they do offer some sporty cars. And you’ll definitely never get a manual transmission from Enterprise. :)

Maxima Speed > hethoughtofcars 04/09/2018 at 22:14

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Never. I buy my cars outright, granted that means I dint get to experience the newest and greatest but I’m willing to live with that for all the money I get to keep.

hethoughtofcars > BlueMazda2 - Blesses the rains down in Africa, Purveyor of BMW Individual Arctic Metallic, Merci Twingo 04/09/2018 at 22:23

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If you’d only want one model (the 320is), then leasing would seem to make more sense. Unless you want to upgrade each model year?

McMike > hethoughtofcars 04/09/2018 at 22:32

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I feel this is the only avenue Elio has left.

XJDano > hethoughtofcars 04/09/2018 at 22:40

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Nope.

I can’t afford it for one. All my junk is paid off and verging on beater status ( except wife’s van, but I don’t consider it mine, although I drive it when it’s family time).

For 2, I prefer disposable cars that I am the one usually ending their life. Drive them until they die. (Except the metro, I am glad it never killed me, I believe I have sentenced it to death, whenever that comes. )

I had a lot of fun with that XJ.

AestheticsInMotion > Wrong Wheel Drive (41%) 04/09/2018 at 22:43

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I’d be dead by my 3rd rental.

404 - User No Longer Available > hethoughtofcars 04/09/2018 at 22:45

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If it’s cross-brand and actually have the cars I want to drive (which doesn’t even really exist for sale in my markets), sure.

Otherwise car ownership, maintenance is part of my miniscule hobby set.

camarov6rs > hethoughtofcars 04/09/2018 at 23:28

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I’d be completely on board if the price made sense. No way am I paying the 2-3k some of the luxury players are asking when you could realistically buy or lease for better. If a full line manufacturer did maybe a graduated subscription cost ie 1000 month is highest tier, literally ANY car we have you can use fully loaded stingray or Silverado is fine. Then you dial back from there and if one month you need a truck or something special then you pay the extra to get to that tier from where you are and then go back after that month.

jasmits > hethoughtofcars 04/09/2018 at 23:39

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I see how a lot of people might be about it but a vehicle is just too much of an emotional object for me. I know it’s irrational, but I like to form an attachment with my vehicle and don’t have any particular desire to always have the latest and greatest. It’s like a friend I make memories with, not a commodity to fill a need and then be disposed of.

Not to mention that I drive a lot so my only real attraction to something like this would be for a commuting appliance and I would blow the mileage limits straight out of the water.

atfsgeoff > hethoughtofcars 04/09/2018 at 23:47

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Any new car subscription service would be waaay out of my price range. I don’t foresee myself ever investing (or more accurately, setting on fire) more than about $200/month on availability of a car (not including fuel).

E92M3 > hethoughtofcars 04/10/2018 at 00:09

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If it wasn’t so expensive. If I remember right BMW wants $3000 a month for their subscription that includes ///M cars. $2000 a month for non-///M cars. At $3000 a month I would just buy a ///M2 and save myself $2000 a month. My insurance is only about $100 a month for my M3, maintenance is probably another $100. But BMW has free maintenance for the first 4 years anyway.

Hell, I could even pickup a slightly used X5, and own 2 BMWs for $2000 a month. If you have tickets, you don’t wash yoir car yourself and you get a new car every year or 2 I could see the appeal I guess. I would have to be making $200k a year before I spent $3k a month on cars though.

Wrong Wheel Drive (41%) > Wagon Guy drives a Boostang 04/10/2018 at 00:10

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Yeah but picking up things from home Depot would be far more fun with something wild like a deuce and a half that runs on cow poop.

Wrong Wheel Drive (41%) > AestheticsInMotion 04/10/2018 at 00:11

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Dying happy is the way I want to go

TheRealBicycleBuck > hethoughtofcars 04/10/2018 at 00:14

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True about the manual. This is my current rental.

Nick Has an Exocet > hethoughtofcars 04/10/2018 at 02:05

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A friend of mine has a car through Canvas. Seems to like it. I’m indifferent because they bin-filed my job application, haha.

Nick Has an Exocet > hethoughtofcars 04/10/2018 at 02:05

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A friend of mine has a car through Canvas. Seems to like it. I’m indifferent because they bin-filed my job application, haha.

pip bip - choose Corrour > hethoughtofcars 04/10/2018 at 06:15

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nope!

gmporschenut also a fan of hondas > hethoughtofcars 04/10/2018 at 20:50

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Intriquing. Wrapping all costs into the program is a plus for many. Ijust wonder howthat would work with bumps and scratches. My friends who lease have noted how much dealers have waived the “reasonable damage” and now nickel and dime for any scrape.

Similar to leasing, I drive too many miles to consider.