4 ms·

The 'Netflix' model of car ownership is on the rise

saurik 8y ago
This is also called "renting a car". I permanently rent a car from Enterprise. They have a different price bracket if you pay monthly. I happen to pay for the full damage waiver, but if you don't get that (which is more comparable to these services) then the result seems very similar. (I just realized someone else left a comment like this, but I think the damage waiver part of it is very relevant.)
- fipple 8y ago
  Why do you permanently rent a car? What’s the advantage?
- tracer4201 8y ago
  What do you pay per month?
  - dazc 8y ago
    You can have a corporate account with Enterprise and get a big discount on regular consumer rates. I have no idea how much he pays but it's possible that the rate compares favourably with any other way of funding a vehicle? Bear in mind, Enterprise's margin is (put, simply) the difference between what they pay for a vehicle and what they later sell it for. Now try and think of an organisation who can compete with Enterprise on this basis, there can't be many other the manufacturer himself?
Finnucane 8y ago
Any car rental place will offer you a monthly rate. Long term rental not really a new thing. Possibly they can be price competitive with that, though. You’d have to comparison shop.
- onetimemanytime 8y ago
  Maybe the app thing and less hassle? Presumably these new companies are well funded and can offer better deals initially and may be willing not to nickle and dime customers. Grow at all costs first...
  - Finnucane 8y ago
    Sure, maybe. But the tone of the article was that they had invented a new business model, which is obviously wrong.
- dazc 8y ago
  I rent cars from time to time since I can manage without during a normal month. Once you've built a rapport with the local office you'll find they give good deals, such as a much better class of car you have opted to pay for and discounts on extra days, etc. If I wanted permanent access to a new car I would lease instead. Hard to see how this new option offers any advantages?
rileymat2 8y ago
From the article, it is unclear whether the average montly loan cost is up because of price increases or a different mix of cars (more suvs less compact) in a good economy.
danielovichdk 8y ago
Leasing is the correct term
zwayhowder 8y ago
We've been using GoGet for the past 10 years as our primary family car and our average spend is (checks YNAB) $162.50 per month. That includes hiring a car for a week at Christmas & Easter for road trips. GoGet also pays Petrol so we literally only have to pay tolls on top of that cost. Admittedly we live within a 5 minute walk of a train station that goes straight to not just our jobs but also our son's school. But still. Not a bad deal. GoGet isn't in the driveway like the article, but there are 3 cars within a 5 minute walk and larger cars within 10. (We can go from a Yaris to do the shopping to a long wheelbase van for Ikea or a 10 person people mover for the holidays).

This is also called "renting a car". I permanently rent a car from Enterprise. They have a different price bracket if you pay monthly. I happen to pay for the full damage waiver, but if you don't get that (which is more comparable to these services) then the result seems very similar. (I just realized someone else left a comment like this, but I think the damage waiver part of it is very relevant.)

fipple 8y ago
Why do you permanently rent a car? What’s the advantage?
tracer4201 8y ago
What do you pay per month?
- dazc 8y ago
  You can have a corporate account with Enterprise and get a big discount on regular consumer rates. I have no idea how much he pays but it's possible that the rate compares favourably with any other way of funding a vehicle? Bear in mind, Enterprise's margin is (put, simply) the difference between what they pay for a vehicle and what they later sell it for. Now try and think of an organisation who can compete with Enterprise on this basis, there can't be many other the manufacturer himself?

Finnucane 8y ago

Any car rental place will offer you a monthly rate. Long term rental not really a new thing. Possibly they can be price competitive with that, though. You’d have to comparison shop.

onetimemanytime 8y ago
Maybe the app thing and less hassle? Presumably these new companies are well funded and can offer better deals initially and may be willing not to nickle and dime customers. Grow at all costs first...
- Finnucane 8y ago
  Sure, maybe. But the tone of the article was that they had invented a new business model, which is obviously wrong.
dazc 8y ago
I rent cars from time to time since I can manage without during a normal month. Once you've built a rapport with the local office you'll find they give good deals, such as a much better class of car you have opted to pay for and discounts on extra days, etc. If I wanted permanent access to a new car I would lease instead. Hard to see how this new option offers any advantages?

rileymat2 8y ago

From the article, it is unclear whether the average montly loan cost is up because of price increases or a different mix of cars (more suvs less compact) in a good economy.

danielovichdk 8y ago

Leasing is the correct term

zwayhowder 8y ago

We've been using GoGet for the past 10 years as our primary family car and our average spend is (checks YNAB) $162.50 per month. That includes hiring a car for a week at Christmas & Easter for road trips. GoGet also pays Petrol so we literally only have to pay tolls on top of that cost. Admittedly we live within a 5 minute walk of a train station that goes straight to not just our jobs but also our son's school. But still. Not a bad deal. GoGet isn't in the driveway like the article, but there are 3 cars within a 5 minute walk and larger cars within 10. (We can go from a Yaris to do the shopping to a long wheelbase van for Ikea or a 10 person people mover for the holidays).