Car Tech 101: Car subscriptions cost a fortune, here's why | Cooley On Cars
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- čas přidán 5. 06. 2019
- Instead of driving one Porsche, Audi or Cadillac, drive them all! Car subscriptions have had a faltering start, but are probing the future of car ownership and even autonomy. Read more on this from Brian Cooley - roadshow.co/rChL7t
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Car subscriptions are a new kind of rental/lease hybrid, with more bells and whistles. They can be offered by carmakers, dealers or startups. They're innovative in three main ways:
Short terms:
Many plans are month to month, so you don't have to make a long commitment to either financial arrangement or specific car you may want to change months of even days from now.
Choice of cars:
What you really want is an SUV for family trips, a sports car for those occasional weekends, and an econobox for those utilitarian slogs to work. That's a lot of cars. With some subscriptions, you can have all of those cars, just one at a time.
Package pricing:
The car(s), maintenance, insurance, taxes, and roadside assistance are usually rolled into one price. About all you pay for is gas, parking and, in some plans, excess mileage.
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Here's why this is happening - average car price in the US is 34k. Add in tax and other fees and it's 37k. On a 5 year note at 4%, that's a monthly payment of $681. Plus insurance. Buy used, buy smart.
what about lease used, so the depreciation is already gone around 50%
@@accountname1651 can’t lease used
So I finally learned how fair works. The Cooley.
This is not a bad service if you're in-between cars and don't wanna be rushed into buying a new car or you can use it to try out a model you're thinking of buying without a big commitment.
Hey Mr Cooley, are you guys ever going to bring back CNET on Cars?
please, we need answers
Def not
Even most of the cheapest subscriptions are several times what I spend to own my car every month even including the maintenance and insurance.
Yeah but the problem is, if you go on a month or 2 month long vacation, you can't just cancel your car payments and insurance for a month or two.
Naveen Kumar A month long or 2 month vacation? And car payments are an issue?
@@NaveenKumar-oj7xh LMAO! I don't HAVE car payments and I absolutely can cancel my insurance for a month. I'll loose the higher tier status on my insurance plan, but if I needed to cancel my insurance, I could.
Have you factored in depreciation too?
@@holycowjustwow I don't think you guys are getting it. I have NEVER paid more than $500 for a car. The two that I've sold before I ran them into the ground, I actually doubled my money on because they were in need of repair when I bought them.
Looking forward to this coming to Canada. Only need a car three months of the year.
Robert Drake I think a car rental is cheaper
@@supershroom164 I dont think it is. I tried to get one for 4 months and the best rates I saw was 3k. For a Corolla. The Volvo XC40 is way, way better and costs 2300 over that same period.
Great, but how much does it cost compare to ownership (including depreciation, insurance, maintenance, financing, etc.)?
I still find this to be a terrible value even considering insurance and maintenance.
Depends - 400 for a rental of a nice car for a month with no limit and insurance included is a pretty decent deal if you want to take a trip or try a new car short term
@@errhka Yeah - I think it's more for that. For people that don't need a car every day. Maybe even kids "Pass this test and we'll pay a month subscription on that new mustang..." type a deal
I look at it as a long term test drive.
Thank you for sharing.
Park place dealerships also have this. It’s called Park place select.. they do unlimited flips! And only month by month commitment... have a variety of luxury makes and models including McLeran.
Well, just the other day I did an event in an advanced technology building at a certain college campus, there was a big poster in the elevator that 85% of graduates find an employment for an average wage of $39k a year within the first year after school. Now this is not the cheapest area with rents around $1500 for a two bedroom unit. so you're left with $21k after just rent, go for groceries, bills, and.. you know.. life... and you're left with maybe five grand a year to spend on a car. With a five year payment plan and APR of 20% (Yes there are people taking these loans) that means you can buy a car for around $12k and might have enough left over for insurance, or gas.
In other words, it's not that milenials don't want to buy cars, we simply can't afford it.
The money you pay is just about the same as what you would do with a loan.
At that point it's better to buy new and sell slightly used or even better, buy slightly used and sell a bit more used.
It's not as cool a tapping on an app, but you're not tied to any contract either, and you can even keep your car if you feel like.
I think we need this in Canada.
3 Big Questions
1) What are the qualifications for subscription Volvo?
2) Is there a down payment?
3) Is there a penalty for exceeding milage limits? If so what are the millage limits & penalty's?
1) same as those of leasing
2) no, just first month + reg and taxes
3) $0.25/mile at the end of lease
Why rely exclusively on autonomous vehicles to travel? You loose freedom because now you'll always have to wait on a vehicle to arrive. And when that vehicle does show up, who knows who it what was sitting in that car before you?
pls bring back normal review
Lmao got a Vroom ad.
The prices are a literal joke.
For care by volvo does someone have to pay acquisition/ document fees still? If you choose the car and do the paperwork online why can't the car be delivered straight to you if you have to pay an acquisition fee if you are waiting 2-3 months for your car.
All subscriptions cost so much. I hate this money making fad
Thought this video was going to discuss how automakers are charging subscription fees for built in features, which is despicable.
Isn't that called car rental?
This reminds me of the time when you sign a 2 year contract and get a free phone, then the phone companies wised up and force people to pay a monthly fee and buy it outright after 2 years and in some cases also offer subscription services for phones. And somehow dumb people think this is a better idea than a free phone with contract model.
Now cars are doing the same thing and more stupid people will buy into this nonsense.
This scares me because car makers will catch onto how little time people spend with their cars so they’ll make them even cheaper and flimsier.
I want to own my car. I want something to show for. And most importantly I don't want the bank to own it let alone a company.
A car is a depreciating asset, you won't have the same value on it when it's time to sell and you're stuck when anything goes wrong.....like a bad transmission.
With Mileage limits, this service is not good.
Subscription! They are flop, Care by Volvo is realistic. The only subscription I believe in is , Electric cars, Car on Leases/Loan/Cash & Battery on subscription. .
I'm subscribed to the XC40 R Design
Personally as a “millennial” I can see why they think this would be popular but there is still a lot of pride with owning a car with your name on the title and the ability to customize and modify your car is still very popular as well.
Uber or Lyft anyone 💵💁
I think Tesla should get into this. It seems like it would be beneficial to them plus they could offer free super charging. This would provide them with some more cash flow that they need.
DoubleCTech they had this
I wouldn't mind a subscription of cheap Toyotas for ~500 a month
What about sales tax when going to DMV? I couldn't imagine paying all those sales taxes Everytime I get into a newer vehicle.
You don't own the car, they come tagged and insured already. It's basically a rental.
In a lease car you pay for title & registration as an itemized cost and only the registration is under your name. In a subscription you just get the key and drive.
Feels like a complete scam.
Rent car with different name more experience 😂😂
80% of people never had a Porsche, Shocking huh? I believe its true, but if Porsche wants more customers, maybe sell their vehicles at affordable prices ??? Not starting at over 60k for base models.
Sounds like to me - the car industry wants a piece of the subscription pie that ridesharing is already going to dominate in the coming years. I honestly think that once ridesharing becomes more widely available... the ill be ordering my ride to work. And even those apps with a flat rate of 10-15 bucks a month. Sorry millennials are hardly making enough to get a ride to work, let alone spend XXX dollars to swap out a car every once in a while. These subscription services are good for the retired and bored with those deep... and I mean DEEP retirement packages where 3k a month is 30 dollars a month.
Damnit I'm a millennial and I buy shit ... Like cars! And own one out right too 🤣 Don't Know where they get there info from !
So you just rent it not own it
I’ll only subscribe to a car service if the Asian girl at the 350 mark comes with it
Porsche, mercedes,BMW, Audi..yuppy poser mobiles that the guy in the modified 8 year old mustang blows THERE DOORS OFF
123bigred their* and it’s not poser mobiles. They are way more refined than a mustang
Those are luxury cars used as daily drivers and 99% of the time will be driven on a road with speed limits. Guy that buys a mustang is looking to race from traffic light to traffic light till they rack up a few speeding tickets and the cost of ownership becomes untenable.
Sorry, this is such a garbage idea!