Want to Get Your Next Car by Subscription? – In California You Can

A Santa Monica, California-based company can put you into a Tesla Model 3 using its cellphone app which is now available for both Android and iPhones. The company offering the Car-as-a-service (CaaS) model is Autonomy. Although currently available only in California, the future plans include rolling it out to other U.S. states.

Until the outset of the global pandemic, owning a car was on a dramatic decline. Ride-sharing was exploding, and because cars were becoming pricier, young people entering the workforce were less inclined to join their parents’ generation of car owners.

Isolation and lockdowns temporarily took drivers off the road, as did sticker shock. The latter has been particularly true for electric vehicles (EV) which without government rebates and incentives can cost tens of thousands of dollars more than cars running on gasoline and diesel.

Almost everywhere a car is the second-largest purchase commitment made by people, only dwarfed by the buying of homes.

Enter EV Car-as-a-Service

The solution to date for many who cannot afford the high cost of new vehicles has been leasing. But now, potential EV owners have an alternative. They can download an app on their Google Play Store or Apple App Store and buy a subscription to an EV without having to assume long-term debt. All the purchaser needs is a smartphone, the app, a picture of his or her driver’s license, proof of insurance, and setting up an account to make digital payments. After that, schedule to pickup or have the EV delivered. Make monthly payments through the app and you have yourself a state-of-the-art Tesla Model 3 EV.

The co-founder and president of Autonomy, Scott Painter is quoted in a recent press release stating, “Instead of spending hours at a car dealership, qualified…users can download an app, and in as little as 10 minutes begin their subscription to a Tesla Model 3. This is the digital experience consumers have been demanding in their car shopping experience.”

The app allows for personalization and a payment dial allows you to arrange a subscription that meets your cash flow needs. Subscriptions begin at $490 US per month with a one-time starter fee of $4,900. Raise the monthly payment to $1,000 and the starter fee drops to $1,000. The remaining costs include a $500 refundable security deposit and applicable taxes once the subscription is activated.

To reserve a vehicle make a $100 refundable deposit through the app. And here is a benefit no leasing company will give. Autonomy’s service fee covers cost of ownership such as annual registration and licensing, routine maintenance, roadside assistance, and standard wear and tear on tires. It says nothing about worn windshield wipers. But considering how dry California continues to be, you may never have a need to replace them.

The CaaS model allows for month-to-month subscriptions with an option after three months. Subscribers don’t have to make any long-term commitment.

And finally, Autonomy keeps an inventory of Model 3s so that a future Tesla driver doesn’t have to queue up to a nine-month waiting list before getting a vehicle.

CaaS started in California as a used vehicle market service. Now it is becoming an alternative to traditional leasing and purchase options. Autonomy is marketing itself through vehicle dealerships across the state. Its push on EV use is welcome as the state tries to meet its net-zero carbon push. At the same time by lowering long-term debt and commitments to operating a vehicle, Autonomy is making it easier for the next generation of car users to adopt an EV.