Mobiliti, a new Detroit-based vehicle subscription service, today announced it is partnering with dealers to offer consumers vehicle subscriptions.
With the new platform, customers will be able to view available vehicles at local dealerships through an app and select a vehicle to fit their needs. After paying a fee that starts at $549, customers use the car for a month and receive insurance, maintenance, warranty coverage, and roadside assistance.
In turn, customers can change vehicles each month based on different desires or needs. There is no initiation fee, down payment, or long-term commitment.
Each vehicle will be uniquely priced based on make, model, and mileage. All Mobiliti vehicles and drivers will be insured by AIG’s subsidiary, Blackboard.
“As a car enthusiast, I struggle with committing to a three-year lease or a five-year car payment, especially with the rapidly changing technology in vehicles,” says Chance Richie, co-founder of Mobiliti. “We’ve been monitoring the car subscription industry closely and studying the various models.
“Most subscription services threaten dealer-driver relationships, bypass the franchised dealer network, and limit consumer choice to one brand. Mobiliti will introduce subscribers to a variety of makes and models, while increasing dealership traffic.”
Richie says the program allows customers “a 30-day test drive to live with a vehicle before they commit.”
Mobiliti works with Ally Financial, which may provide fleet financing credit facilities to qualified Mobiliti dealership partners.
Once a vehicle comes off subscription, the dealer can list it for retail sale while waiting for a new subscriber or have Mobiliti remarket it for the dealer using Mobiliti’s connection to Ally’s SmartAuction platform.
“Mobiliti offers consumers flexibility and choice in vehicles, while also helping dealers maximize their inventory and reach customers who want a different car driving experience,” says Tim Russi, president of auto finance for Ally. “We’re excited to work with Mobiliti to help lead the way as car ownership evolves to meet changing demands in the market.”
Ally and Mobiliti are exploring opportunities to integrate Mobiliti with financing opportunities available through Ally’s Clearlane platform for subscribers who want to buy the vehicle at the end of the subscription period.
Ally launched Clearlane, a digital financing platform, in April 2017 to digitally connect consumers with finance providers who can provide vehicle financing quickly and easily.
Mobility plans to launch in Austin, Texas, in May and is slated to spread to other major U.S. markets this year.