Car subscription services fit the needs of a small demographic of U.S. buyers with whom automakers are testing a new ownership model. Ford, BMW, General Motors Co., Mercedes-Benz, Porsche AG, and Volvo Cars all have subscription options that essentially allow consumers to pick a vehicle, and swap it after a month, or two, or six for another.
Subscriptions are often more expensive than a lease, with monthly costs approaching $3,000 in some cases — though that includes insurance, maintenance and mileage fees.
“It’s a different demographic in that they’re younger, a little bit more affluent, and they have higher FICO scores,” Leonard Ferguson, Ford Credit vice president of mobility and fintech said. “What we’re seeing is flexibility attracts people to the service. They need a vehicle for one month or six months. If we weren’t doing this, we wouldn’t be learning at the rate we’re learning today.”
Read the article at The Detroit News.