AutoNation On-Demand Used Car Subscription Bundles Maintenance, Insurance

November 19, 2018

AutoNation Inc., the country’s largest automotive retailer, has announced a partnership with Fair, a digital subscription service, that will allow consumers to lease used vehicles on a month-to-month basis rather than buying them. Consumers can shop and sign for a car directly through the Fair app from anywhere.

Every Fair car comes with a limited warranty, routine maintenance, and roadside assistance included. Consumers can add insurance, extra miles or excess wear-and-tear protection at checkout and bundle it all into one monthly payment.

With Fair, AutoNation dealerships will gain a new sales channel that matches car shoppers with the used and pre-owned vehicle inventory that best fits their needs.

AutoNation said it will begin rollout in California this month.

Volvo, BMW and General Motors Co’s Cadillac. have launchd similar subscription offerings. GM is also testing a peer-to-peer car sharing program.

Mike Jackson, AutoNation’s chairman and CEO, and Georg Bauer, Fair’s co-founder and chairman, previously worked together, leading Mercedes-Benz USA as CEO and president and Mercedes-Benz Credit Corp. as CEO, respectively.

AutoNation operates 325 locations from coast to coast. Fair is a Santa Monica-based tech company that pioneered in the car as a service (CaaS) subscription model.

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