Subscribe to your next used car
The startup Fair doesn't want you to own or lease your next car. It wants you to “micro-own” a used vehicle by paying a monthly fee to keep it as long as you want – anywhere from a few weeks (generally a bad deal) to a few years (a better deal).
This subscription model aims to sidestep the time commitments and early-return fees of leasing and the financial depreciation of ownership.
The company's app, currently available on iPhones only, lets you choose a used car for a monthly payment based on the model and your creditworthiness. To discourage early returns, Fair charges a down payment of three times the monthly fee.
Fair could save drivers money. It says a 2014 Toyota Camry would a cost Glendale, California, driver $570 down and $190 per month (not including insurance) with no time commitment. A four-year lease for the same car from a dealer would cost $343 per month, according to Edmunds.com.
For now, the app is limited to Southern California, but Fair plans to expand across the state this year and into a dozen other cities next year.