AutoNation partners with car subscription service
Fort Lauderdale-based AutoNation is again embracing emerging technologies with the announcement Thursday of a partnership with Fair, a car subscription service.
Through the partnership, Santa Monica, Calif.based Fair will provide a month-to-month subscription to used and certified preowned vehicles at AutoNation dealerships, by signing up and shopping via mobile app.
"The innovation of Fair's model is unique," said Mike Jackson, AutoNation's chairman and CEO, in a news release. "We are excited about the potential of this partnership to give our customers an alternative to traditional ownership via Fair's subscription model.”
In October, AutoNation invested $50 million in Vroom, one of the largest online retailers of used cars. The investment gave AutoNation 7 percent stake in the New York-based company.
Last year, AutoNation announced a maintenance partnership with Alphabet’s self-driving startup Waymo, and recently expanded it to offer Phoenix, Ariz., customers the use of a Waymo self-driving vehicle while their car is serviced at an AutoNation dealership.
Fair currently has more than 37,000 vehicles available for subscription, according to its app. Monthly prices range from $135 to $700, depending on the vehicle, mileage, model year and location available, as seen on the app.
AutoNation said Fair gives its dealerships a new sales channel and provides consumers flexibility in personal transportation. Fair consumers can keep a car as long as they want it and walk away at any time without penalty. Fair cars come with a limited warranty, routine maintenance, and roadside assistance included.
Consumers can add insurance, extra miles or excess wear-and-tear protection at checkout, AutoNation said.
“We're focused on making getting a car as easy as streaming a movie,” said Georg Bauer, Fair's cofounder and chairman.
AutoNation said it will begin rollout of Fair in California this month. The car subscription service would begin in the first quarter of 2019.
South Florida consumers already can subscribe to cars of their choice through Revolve in Delray Beach and Davie-based FlexWheels.
The nation’s largest auto retailer, AutoNation owns and operates more than 325 locations from coast to coast.
Jackson and Bauer previously worked together, leading Mercedes-Benz USA as CEO and president and Mercedes-Benz Credit Corp. as CEO, respectively.