I’m Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at car subscriptions. Mike, you and I are old enough to remember when there were only two ways to use a vehicle – purchase it, or borrow it from you parents. A couple decades ago leasing a vehicle emerged as an option. Now there’s something new I’m hearing about – auto subscriptions. What are they?
Mike: Summary Answer
- Pay a monthly fee to use vehicle – fee covers everything – insurance, maintenance, roadside assistance
- Major feature is its flexibility – can change vehicle with just a couple days of notice – often dealer will bring you the other vehicle
- No down payments or financing charges
- No negotiating – fees are set
- Short commitments – some subscriptions can be as short as a month
- But, often not guaranteed a new vehicle; restrictions on mileage and how use; and user may be tracked so dealer knows where vehicle is at all times
- But, another options
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.