This new service could be a solution to the EV shortage.
Key details
California-based startup Autonomy is jumping in to bring drivers EVs more quickly. The company’s subscriptions, or rentals, range from a quick one-day rental to three-year leases.
While electric vehicles (EVs) might be increasing in popularity, manufacturers have still struggled to keep up with demand.
A Bloomberg survey found that EV owners waited for an average of seven months to receive their car after placing an order.
Autonomy describes itself as, “We exist to expand the adoption of electric vehicles and we don’t think you should be forced to accept expensive, long-term debt to drive one.”
The company offers vehicles in several brands and has recently ordered additional vehicles. Last week, Autonomy purchased 23,000 cars from 17 different manufacturers, including newer companies like Canoo and Fisker, which have not completed a driveable model yet.
Customers who subscribe to one of Autonomy’s cars pay a starting fee and a monthly fee. The start fee ranges $1,000 to $5,900 and the monthly fee from $490 to $1,000. The lower the monthly payment a customer selects, the higher the start fee; the higher the monthly payment, the lower the start fee.
Subscribers are only locked in for three months, allowing drivers to cancel any time. Customers are not obligated to pay maintenance, registration fees, or interest.
Backing up a bit
EV ownership could be becoming more realistic for the average American consumer.
A recent bill passed by Congress includes a $7,500 tax credit on the purchase of new EVs and $4,000 off a used EV.
Incentives like the tax credits could make EVs more desirable for consumers.
Why it’s news
One of the frustrating parts about purchasing an EV is the expected wait time. With options like Autonomy could make the vehicles more immediately available.
In addition to availability, the subscription option also makes EVs more affordable. Rather than shelling out $50,000 or more for a Tesla, drivers can subscribe to an Autonomy Tesla.
What’s not being said
Subscriptions to publications, personal care items, and streaming services are everyday occurrences, but subscribing to something like a vehicle may be something consumers balk at.
Some vehicle manufacturers are offering subscriptions for luxury services in their vehicles, like heated seats.
In the UK, BMW offers an $18 monthly subscription for heated seats. OnStar navigation in some new General Motors vehicles is a “mandatory” $1,500 subscription.
