Fintech company AmeriFinance launched a dealer-run used-vehicle subscription platform called AmeriDrive in July and Chief Operating Officer Agustin Perret-Gentil predicts more dealers will follow suit in order to meet customer convenience.
“We strongly believe that subscription is the future of driving,” Perret-Gentil told Auto Finance News. “[Millennials] just want to enjoy freedom and convenience, and they are willing to pay a little extra for that.” Not just millennials, but consumers at large will be shedding their attachment to long-term loans when more flexible options are available, he added.
AmeriDrive is the result of a three-way partnership between dealership chain Florida Fine Cars, AmeriFinance, and technology provider Flexdrive. Through the Flexdrive app, customers can search the dealership’s used-car inventory across four stores and subscribe to a vehicle for a weekly rate that bundles insurance, maintenance, and roadside assistance.
The rate varies by model, but prices range from $129 to $349 a week. According to a recent online search, the same model car on Hertz costs consumers $307 a week to rent — $178 more than AmeriDrive.
Consumers can also switch to a different vehicle at any point, and the price will be adjusted. The service has 100 subscribers to date, though, some of those are still going through the approval process and are not yet in a car, Perret-Gentil said.
