From the February 2018 issue
Technology is forecast to so thoroughly transform the automotive landscape that not even the idea of ownership is expected to survive the next generation or two unchanged. The latest twist: the car subscription program. With this model, rather than making payments on a single car, you pay a monthly fee to have access to a pool of vehicles. If your needs change, so can your car. Taxes, insurance, and maintenance are generally included. Cadillac and Porsche were the first carmakers to launch such programs [see ?The OEM Approach?], and others have announced their intent to follow suit.
Then there?s Mobiliti, a third-party subscriber service affiliated with no particular brand. Instead, Mobiliti is partnering with dealerships that will list vehicles from their inventories. Monthly fees will vary but will be based primarily on a vehicle?s cost to the dealer and the customer?s intended mileage, driving record, and credit history. It?s free for dealers to join, and there?s no up-front fee for subscribers. Maintenance and property-damage insurance will be included, and so will liability coverage ?with generous limits? as well as comprehensive and collision insurance. Mobiliti?s dealer partners will be covered under an umbrella policy. One swap per month will be allotted, with extra swaps costing $99. From a customer perspective, the appeal of a subscription service is dependent upon a number of factors: personal finances, aversion to ownership, the in...