ABC News: Subscription Model Could Become Auto Trend
Dec. 28, 2017—In an article that looked ahead to 2018, ABC News recently wrote that the subscription model could become more popular at some car dealerships.
The article noted that manufacturers such as Porsche, Volvo (who is offering insurance coverage through its all-inclusive subscription), Cadillac and Lincoln have all introduced subscription models that allow drivers to swap vehicles every week for a set fee.
These subscription plans, of course, typically bundle maintenance costs, insurance, roadside assistance, vehicle tax and registration into a single monthly payment, and membership is often month to month, with no long-term requirement.
However, the monthly fees are significantly more than an average lease or finance payment.
Cadillac, for example, charges a monthly flat fee of $1,500, and vehicles are delivered via white-glove service to members’ requested locations.
ABC News also said the following are auto industry trends to keep an eye on in 2018: SUVs’ still-solid sales figures, the incremental adaptation of EVs and autonomous vehicles, and the evolution of ride-sharing services like Uber and Lyft.