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Due to private-party sales and traditional auto dealership sales, each year in the United States approximately 40 million used cars exchange owners. Thanks to some new car subscription startup services, both the used and new car market could soon be drastically changed.
According to Crain’s, Startups Condor Detroit and Mobiliti LLC are launching new car subscription programs that are flipping the traditional method of buying, selling, and even owning vehicles. The subscription services promise a faster, more flexible experience for members that pay a flat monthly fee to drive a new or used vehicle whenever they want, for as long as they want.
Condor and Mobiliti even offer insurance packages and maintenance expenses as part of the monthly subscription payment.
“Our vision is to make the process really simple; one payment, everything included,” said Tarun Kajeepta, founder of Condor. “People want flexibility to drive the car they want, when they want, and change to a different car without the hassle of buying or leasing.”
The Drive reports that the monthly fee will start at $549 that covered insurance, maintenance, warranty coverage, and roadside assistance. Additionally, if a subscriber wants a new vehicle after the initial 30 days, they can simply trade it in and get an upgrade.
Vehicles for the subscription service will be drawn from a vast dealer inventory. The dealers that participate will put returned cars back onto the lot to be sold to traditional car buyers or sent off to auction for another dealer to buy. This will allow people to utilize a vehicle during specific periods of time, and return it and stop making payments on it whenever they want.
“A lot of folks don’t want to hold onto a car for three or five years,” added Mobiliti CEO Chance Richie. “The technology, look, and functionality of vehicles is changing so rapidly, the subscription service makes a lot of sense for many people.”
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