Carma, a Detroit-based vehicle subscription company is launching a new program for those looking to get a new car. For a nominal fee, those looking for a car can acquire one from a dealership or leasing company and pay monthly. The service will include maintenance, insurance, and other responsibilities car buyers face. The driver essentially only has to worry about getting gas for the vehicle.
Though the cost is higher per month than being on a lease or owning the car, it offers tons of flexibility for those looking for a new ride.
Targeting Dealerships and Leasing Companies For Vehicle Subscription
There are other startups in the US such as Fair and FlexDrive who focus on private party consumers. However, according to a report from TechCrunch, Carma fairs out differently. For example, they offer great advice that helps companies come up with strategies for subscriptions on their vehicle fleets. Pretty much, Carma is laying out the format so that other companies can follow suit.
Vehicle Subscription Is The Next New Thing And May Help Those Wanting To Lease Cars In The Future
One company in Canada is already jumping on the train. AutoOne, a leasing company in Canada has a deal with those at Carma.
Most, if not all car dealerships have a lot of cars on their lots waiting for owners. If these companies were to offer month-to-month contracts, especially on their new models, they would be able to get more cars off their lots.
Carma not only offers infrastructure for their service, but they also take care of fleet tracking, insurance, and user agreements. They also bill through a mobile at that is specific for dealerships.
According to a spokesperson for the company, they install a telematics device in each car. Their unique insurance policies are specific for who the subscriptions come through.