Listen Now: Car Subscription Service
In the market for a new car? There’s a subscription service for that.
You probably already have a monthly subscription service for TV, music or home delivery. Now, multiple cities across the country including San Francisco, New York and Atlanta are allowing you the same deal for a new ride.
For a monthly fee and a minimal commitment you get a car with a warranty, roadside assistance, maintenance, a prescribed mileage allowance and insurance. So far several carmakers have launched subscriptions with Mercedes starting one next month. Car dealership groups and startups are also jumping on the bandwagon.
With the exception of Volvo, the cars are not brand new but with a few exceptions are from the current or just prior model year. You can apply for one of these programs via an app or a website. They usually require a check of your driving record and credit card information.
If approved, the startup fee is around five hundred dollars, with monthly fees from two hundred and fifty to thirty seven hundred depending on the car. That’s what I call taking a test drive.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.
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