Fiat Chrysler Automobiles (FCA) Group and Mercedes-Benz will launch US car subscription services in the US, according to reports.
The FCA service allows buyers of certain Jeep models to receive credits or ‘coins’ that will go towards borrowing further FCA products. The consumer will retain ownership of their original vehicle in this model, though the subscription service may tempt buyers to opt for the pricier but slightly less practical models by ensuring they could borrow a wider variety of vehicles if required.
At an investor event in Northern Italy, Fiat Chrysler also confirmed that there would be three tiers for the programme “with options for insurance coverage, vehicle selection, and concierge services.”
The Mercedes-Benz car subscription service will offer Signature, Reserve and Premier tiers, ranging in price from $1095 to $2995 a month. Mercedes’ plan looks to be noticeably cheaper than its main rivals offering car subscription, with BMW plans ranging from $2,000–$3,700 a month and Porsche costing from $2,000–$3,000.
This is to be an app-based service with the pilot scheme being tested in the US cities of Philadelphia and Nashville.
In April this year, it was announced that BMW UK were to partner with Drover to offer a car subscription service. The pricing begins at £562 a month for a Mini Cooper 3-door Hatch. London-based company Wagonex offers a car subscription service in which consumers can drive a variety of makes and models, including the Toyota Yaris, the Aston Martin DB11, and the Volvo XC60, among others. One if its cheapest currently available options is the Skoda Fabia on a rolling monthly contract at £342 per month.
Of the recent move by manufacturers to car subscription services, Stephanie Brinley, a senior industry analyst with IHS Markit, said: “There’s a potential for people to start consuming transportation in a very different way. If that sort of reality is going to take hold, all of these programs are part of getting there. [Car companies] cannot afford to wait until it’s already here in high demand.”