Feb. 8, 2018—Canvas, the Ford Motor Credit Company subsidiary that offers drivers a vehicle subscription service that includes insurance coverage, has seen significant milestones less than one year since launch.
The company’s subscription model, which offers giving people access to their own vehicle without the commitment of financing or leasing, has 600 current customers.
Volvo, BMW and Mercedes-Benz have all created similar subscription services that include insurance.
The moves would help manufacturers keep pace with competitors such as Porsche and Cadillac, which are already testing similar subscription services.
With OEMs looking to boost dealership profits, subscriptions seem like a natural next step to Joe Schneider, managing director for KPMG Corporate Finance, for two reasons:
- It could change the insurance process with collision repair shops.
- OEMs could then push work to dealer body shops—a practice commonly known as “steering” in the collision repair world.
Serving the San Francisco Bay and west Los Angeles areas, Canvas has added features to help customers better personalize their experience, from adding multiple drivers to allowing flexible mileage packages. Canvas customers so far have driven more than 3 million miles—equivalent to 120 trips around the equator.
With Canvas, customers have a vehicle 24/7 as if it were their own. They pay a bundled monthly subscription fee that covers a preferred mileage package, comprehensive insurance, warranty, maintenance and roadside assistance. Packages start at $400 a month depending on the vehicle and other options. Canvas allows customers to select a vehicle, mileage package, delivery location and other details easily and conveniently through its website. When a customer is ready to return the vehicle, they simply give seven days’ notice and Canvas will pick up the vehicle at a convenient location.
