Browse Definitions :
Definition

automotive subscription plan

An automotive subscription plan is a service that offers use of a motor vehicle to a driver for a monthly subscription fee.

For less than the cost of a lease, an automotive subscription provides the opportunity to drive a vehicle with few associated costs other than fuel. Other costs such as maintenance, registration and insurance are taken care of by the service provider. Service providers often offer vehicle drop-off with concierge service. Automotive subscriptions also demand little commitment, with terms varying from months to even weeks or days. Mileage limits are likely, but it's possible the limit will be greater than that of a leased car.

Cadillac was one of the first manufacturers to offer subscription-based vehicle use called Book by Cadillac with a pilot program in New York. Since then, many manufacturers have started to offer vehicles on the subscription model, such as Ford's Canvas, Porche's Porche Passport and Volvo's Care by Volvo. Subscription terms and prices vary greatly with providers and their plans. Some manufacturers offer a specific car model, while others allow subscribers to choose from several models.

Startup companies like Fair and Flexdrive in the United States offer a variety of car makes and models for subscribers to choose from, with the ability for subscribers to swap cars at any time. Many subscription companies offer the ability to sign up for a subscription right from a mobile app.

Convenience, flexibility, cost savings and set pricing are a few reasons why people might be attracted to an automotive subscription plan. People who would likely not be interested include those who value ownership, dislike driving restrictions and have no interest in switching vehicles regularly.

This was last updated in March 2018

Continue Reading About automotive subscription plan

SearchNetworking
SearchSecurity
  • man in the browser (MitB)

    Man in the browser (MitB) is a security attack where the perpetrator installs a Trojan horse on the victim's computer that is ...

  • Patch Tuesday

    Patch Tuesday is the unofficial name of Microsoft's monthly scheduled release of security fixes for the Windows operating system ...

  • parameter tampering

    Parameter tampering is a type of web-based cyber attack in which certain parameters in a URL are changed without a user's ...

SearchCIO
  • chief procurement officer (CPO)

    The chief procurement officer, or CPO, leads an organization's procurement department and oversees the acquisitions of goods and ...

  • Lean Six Sigma

    Lean Six Sigma is a data-driven approach to improving efficiency, customer satisfaction and profits.

  • change management

    Change management is a systematic approach to dealing with the transition or transformation of an organization's goals, processes...

SearchHRSoftware
SearchCustomerExperience
  • clickstream data (clickstream analytics)

    Clickstream data and clickstream analytics are the processes involved in collecting, analyzing and reporting aggregate data about...

  • neuromarketing

    Neuromarketing is the study of how people's brains respond to advertising and other brand-related messages by scientifically ...

  • contextual marketing

    Contextual marketing is an online marketing strategy model in which people are served with targeted advertising based on their ...

Close