Everyone should know by now that buying a new car is a long-term financial commitment and a bad investment. When drive the car off the lot it plummets in value. Most people do not even spend 2 hours in their car a day. The rest of the 22 hours the car is sitting. We are required by law to have auto insurance and to pay for vehicle registration for any vehicle that you own. This even includes if you just have the car in your garage sitting for years.
Most people in America still want to own their own car, no matter if they are loosing their money in the deal. Even though the car industry is posting record sells, they are developing new options for mobility. The new options could change the way people finance their vehicle and for how long.
#Ride-sharing services such as Zipcar and Uber have been affordable for short destinations, but for long trips the cost can add up quickly. Even though they are quick they dont offer us to have our own vehicle at our own leisure. This is he main reason car companies are experimenting with mileage plans.
Current vehicle subscriptions are expensive in most cases. Cadillac, Porsche and Volvo can range anywhere from $600 to $3000. The cost depends on the model and the trim of the vehicle that you want.
Ford is the first to target the mainstream with a startup called #Canvas, this is a subsidiary of its Ford Motor Credit vehicle financing. The plan is said to offer lower prices and a smartphone data plan.
Canvas packages range fro $375 a month for a Fiesta compact to $685 for a full-size Explorer SUV, with vehicles ranging from F-150 pickup to a C-Max Hybrid. Thus far the monthly cost of the vehicle will include comprehensive insurance, vehicle maintenance, a warranty,registration, and roadside assistance.
The subscriptions start at 500 miles a month and go up to 850 miles/month for $30 more, 1,250 miles/month for $60 more, and unlimited mileage for $90. Just like in a data plan your unused mileage is rolled over to the next month, and you have the capability to change plans during the month.
Canvas said that the longer you want to keep the vehicle that the cheaper the price overall will be, since it would be less work for them. The vehicle price will fluctuate the longer you choose to keep the vehicle and going down in price would be great.
Currently, the program is only available in West Los Angeles and in the Bay Area, and Canvas has less than 1000 customers. This new push into this sector will star small and grow as time goes on. It's not to different than leasing a car so the learning curve should'not be to hard to understand.
The vehicle leasing programs don't offer as many benefits as Canvas, so I can see why someone would want to choosea Canvas over the current leasing option. If you get more, have worry about less, not have to get the motor vehicle insurance and able to swap out cars, why would you choose anything else, if you are going to pay a car payment anyway.
Let me know whose interested in getting a subscription. I'm interested and I hope that other companies make this available across the world. I know right now that since my family is growing we could use this type of plan for a little while at least.