Car subscriptions offer alternative to buying

People use monthly subscriptions to pay for lots of things they used to buy: music, smartphones, books and even clothes. Why not cars? That’s the thinking behind car subscription services that are cropping up in Los Angeles, San Francisco, the New York metro area, Atlanta, and several other cities in the South and Midwest. For a monthly fee and a minimal commitment, you get a car with a warranty, maintenance, roadside assistance, a prescribed mileage allowance and, typically, insurance.

Several carmakers have launched subscription services: Access by BMW, Book by Cadillac, Porsche Passport, Care by Volvo, and Canvas, which offers Ford and Lincoln models. Mercedes-Benz’s Collection service starts in June.

Car dealership groups and startup companies also are latching onto the idea. With the exception of Volvo, the cars are not brandnew, but with a few exceptions, they are from the current or justprior model year.

Only Care by Volvo is available nationally. But companies are expanding their service areas, so if there isn’t a program near you now, there might be soon.

All the services stress convenience and freedom. But none claim to be the cheapest way to have a car. (That would be buying a used car and driving it until the wheels fall off.) Most services also restrict how you can use their vehicles. In many programs, for example, pets must ride in crates. To track mileage, and to get the car back if someone defaults on payment, some services install GPS trackers.

Most often, you apply via an app or a website, agree to a check of your driving record, and enter credit card information. Some services do a “soft” credit check.

Startup fees are about $500. Monthly fees range from $250 to $3,700.