As vehicle subscription takes hold in the minds of consumers — who are warming to the idea that they can subscribe to cars, trucks and SUVs the way they subscribe to Amazon video channels — more dealerships are looking for ways to get into the subscription business. Mobiliti, a new Detroit-based national vehicle subscription service, is currently partnering with dealers to help them compete in the subscription business. Through Mobiliti’s dealer partners, subscribers have flexible and cost-effective month-to-month access to a variety of vehicle makes and models.
This week, Mobiliti announced another addition to its approved group of auto dealerships. Island Auto Group is a multi-franchise sales and service organization based in Staten Island, New York. The dealerships, which sell Toyota, Kia, Jeep, Hyundai, Subaru, Mazda, VW, Mitsubishi and the Chevy Group, are all located on Staten Island’s Hylan Boulevard. Cars will be available on the Mobiliti app from Island Auto Group beginning next month.
Here’s how it works: Drivers in need of a vehicle select their car, truck or SUV from the inventory of a group of dealers that comprise the Mobiliti network. They can browse, compare and select a vehicle via the Mobiliti smartphone app, which is available from Google Play and the App Store. They reserve the vehicle to their approved Mobiliti account, select the mileage for the subscription level for the month, confirm payment, and set up a pick-up time to retrieve the vehicle. Subscription fees start at $549 a month and go upwards from there (topping out at about $1,400 a month).
It’s an appealing scenario for drivers who’d like to skip the complexities and commitments that come with owning a car (or leasing, for that matter). The Mobiliti subscription fee includes insurance, maintenance, warranty coverage and roadside assistance, and subscribers of the service can swap vehicles as often as once a month. Insurance is through AIG’s subsidiary, Blackboard. In addition, Ally Financial is working with Mobiliti to provide a fleet financing line specifically for this subscription service.
As new car sales decline and the inventory of used cars increases this year, Mobiliti says it helps dealers generate new business by providing customers with an alternative to leasing or buying, using existing dealer inventory for a premium subscription service that can lead to additional sales.
“Mobiliti is helping to create another revenue stream and drive new customers to the showroom and service bays,” said Josh Aaronson, co-owner of Island Automotive.