Instead of buying it, Fiat is offering its customers a no-obligation subscription to a 500th

Fiat has just launched a non-binding subscription formula for driving an electric 500. A new offer that allows you to have your own car without having to go through the purchase or long-term rental.

A subscription for the smartphone, for Netflix and soon also for the car. Fiat will launch a subscription offer to drive a Fiat 500e in April. For at least 299 euros a month – and after a deposit of 1,000 euros that is repayable at the end of the contract – the customer can use an electric Fiat 500 with a monthly mileage of 1,500 kilometers. The basic package includes a model with 190 kilometers of autonomy, other packages offer versions with 320 kilometers.

Direct online payment by credit card

No carsharing here, this 500 is his… as long as the subscription is active. Maintenance (reduced for electric cars), assistance and, above all, all-risk insurance are included in the non-binding package.

“It’s a very simple offer, it’s on a 100% dedicated website where in a few clicks they can choose the package they want and the retailer to deliver to, and then they just have to pay directly with their bank card pay,” explains Philippe Vautier, General Manager of Fiat France, on BFM Business.

Not many documents need to be presented as with a loan or long-term rental. Which also seduces a young audience, largely apart from new vehicles.

France will be the pilot market for this formula before perhaps expanding to other markets if successful. The Italian manufacturer is not the only one thinking about this new way of car consumption. In February 2021, Hyundai launched a similar offering in Spain called Mocean Subscription.

Auto consume like Netflix

In an increasingly uncertain automobile market, can the subscription represent an alternative for those who do not or no longer know whether they need a car? Christophe Pineau, Strategy and Mobility Director at ByMyCar, is convinced of this.

“It’s a real emerging market given the rising cost of owning a car and the evolution of the ‘as a service’ approach to our lives,” explains this professional. The situation is very favorable for its development. , because it is more competitive compared to medium-term rentals”.

ByMyCar – which notably includes the second-hand resale site Elite Auto, the driving school En Voiture Simone and the VTC Marcel – launched its own subscription offerings last November. A hundred contracts are now active across five historic concessions across France, and Christophe Pineau is hoping for several thousand contracts this year.

flexibility

The range of subscription models – here very up to date – ranges from city runabouts to large sports cars. The median price is therefore significantly higher than Fiat: around 750 euros. Half of the customers are traders, especially young companies, whose managing directors do not yet know the vehicle requirements for their company or who do not have the financial means to set up a vehicle fleet. Among the subscribers are executives who have relocated and are testing options for their travel.

“This enables people who have turned away from the car because they didn’t want to be for longer periods of 2 or 3 years, the main interest is flexibility,” summarizes Philippe Vautier. An offer that is aimed in particular at drivers who are reluctant to switch to electric. Fortunately, 70% of the Fiat 500s ordered in France are electric.

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