As OEMs and their financial arms experiment with expensive subscription programs that allow consumers to swap in and out of cars, Hyundai Capital America last week launched its take on the trend with longer terms at a lower price.
The Hyundai Plus program launched in Ohio last month and allows consumers to lease cars on a three-year term with insurance and maintenance bundled into the $279-per-month starting price. That compares to new-car, month-to-month dealership subscription programs that nearly all start at $1,000 per month.
“It’s a more attractive price for the consumer,” Mark Abbasi, vice president of product development for HCA, told Auto Finance News. “Month-to-month programs are quite expensive, and we wanted to come out with something that’s more affordable and provides more value to the consumer. That three-year term helps you get there.”
In 2017, Hyundai began experimenting with subscription programs through its Ioniq Unlimited+ program, which provided EV enthusiasts with unlimited miles and charging reimbursement. With the focus on mass-market vehicles, Hyundai sought to provide an accessible price, but Abbasi admits the company is still searching for the optimal audience.
“We’ve had a lot of discussions about what [the demographics] look like, and we’ll see how it plays out in the pilot because we’re not sure,” he said. “It will be interesting to see what consumers ultimately choose. Do they want a new car over a longer period of time? Do they want a new car with a higher price over a shorter period of time? Or do they want used vehicles that offer more flexibility?”
