On the same day Autonomy founder and CEO Scott Painter was on stage for the NAVIcon portion of Used Car Week in San Diego, VinFast was at the Los Angeles Auto Show 2022, announcing an order from the electric vehicle subscription company of more than 2,500 VF 8 and VF 9 vehicles.
According to a news release, this is VinFast’s largest corporate order to date, and one of Autonomy's largest electric vehicle orders.
In August, Autonomy ordered 23,000 electric vehicles across 17 different global automakers, including VinFast, to operate its subscription services.
At that time, Autonomy planned to order 400 VF 8 and VF 9 models and now has officially increased the order to more than 2,500 vehicles from the Vietnamese automaker.
“We are excited to add VinFast to our subscription lineup and help raise U.S. consumers’ interest and awareness of VinFast and their luxury electric vehicles through Autonomy’s car subscription. Autonomy’s affordable month-to-month model makes it much easier for consumers to make the switch to an electric vehicle and to consider new brands and models on the market,” Painter said in the news release.
According to the agreement, VinFast will begin delivering vehicles to Autonomy over the next 12 months, as it starts exporting vehicles to international markets.
Le Thi Thu Thuy, vice chairwoman of Vingroup and chairwoman of VinFast, said: “This is an exciting moment for VinFast as our vehicles are about to enter the U.S. market. The order from Autonomy is a testament to the trust we have built in the market. Bringing the VF 8 and VF 9 to Autonomy’s EV subscription fleet will give consumers yet another way to experience our brand and discover the benefits of our premium smart EVs. Collaborating with Autonomy will also help us quickly achieve our goal of accelerating the electrified mobility revolution and building a sustainable future for everyone.”
Autonomy now is plugged in with J.D. Power.
Last week, the electric vehicle subscription company said it is now offering access to its services through J.D. Power’s consumer website at JDPower.com.
The move comes after Autonomy recently landed relationships with Liberty Mutual as well as DigiSure in connection with insurance along with AutoNation to gain scale.
After gaining that momentum, Autonomy founder and chief executive officer Scott Painter described what it means for the company to align with J.D. Power, a global leader in data analytics and customer intelligence and a key destination for consumers searching for information on their next vehicle.
“J.D. Power is one of the most trusted global brands by both consumers and the automotive industry,” Painter said in a news release. “Presenting Autonomy’s EV subscription service on JDPower.com opens up an important new channel to access an EV, one that doesn’t require long-term debt or long-term commitments and can be completed digitally through a smartphone.”
Now, consumers shopping for a vehicle on JDPower.com will be able to learn more about EV subscriptions by clicking on an Autonomy ad on the website. The Autonomy service is currently available in California and is gearing up for expansion to other regions of the country.
“New-vehicle subscriptions, which have emerged as an interesting alternative for consumers looking for something other than a purchase or a lease, represent a new frontier in automotive retailing,” J.D. Power president and CEO Dave Habiger said in the news release.
“Subscriptions are prevalent in many other areas of our lives, so it only makes sense that we would offer access to this new channel on our website, which is an important source of consumer information on not only the latest vehicles, but also important trends in the marketplace,” Habiger continued.
Eligible visitors to JDPower.com will be offered access to the Autonomy EV subscription service by clicking on Autonomy ads that appear when they are searching for relevant vehicle inventory or conducting EV research.
“This is why people visit JDPower.com; they’re trying to find the newest, most reliable information available when buying and researching vehicles,” said Tanya Parkes, vice president of the consumer division at J.D. Power. “That wealth of information now includes access to subscription services, along with data on buying and selling a vehicle. It’s all about bringing more clarity to the shopping experience.”
Autonomy co-founder and president Georg Bauer added, “Subscribing to a vehicle is the new and modern way of accessing mobility.
“By making our service available on JDPower.com, we will raise awareness of Autonomy and the unbeatable value proposition of a car subscription. Once consumers try it, we are confident that they will remain customers for life,” Bauer went on to say.
This week was another busy one for companies that operate in alternatives to vehicle ownership, as announcements arrived from Autonomy, Kyte and FINN.
Beginning first with Autonomy, the electric vehicle subscription company offering consumers what executives believe is the cheapest, fastest and easiest way to get into a Tesla Model 3 is now expanding its service to the San Francisco Bay area of California.
The company announced it now has pick-up locations planned in San Jose and San Francisco.
“Northern California is famous as an early adopter market that embraces disruptive new technologies that improve quality of life,” Autonomy chief executive officer and founder Scott Painter said in a news release.
“We launched commercially in Los Angeles in January and immediately saw a third of our demand from the San Francisco Bay area,” Painter continued. “Our digital first and EV focused approach to mobility clearly struck a chord, so it made sense to expand our operations and footprint.”
Autonomy also rolled out new pricing, offering an even lower monthly subscription for a Tesla Model 3, which the company said now costs less than Tesla’s own lease or an installment contract.
Autonomy said subscribers can reserve the Model 3 via Autonomy’s app or website with a $100 refundable deposit. The new subscription price includes a flat monthly payment of $490 and $4,900 start payment.
Consumers also have the ability to use Autonomy’s payment dial to customize their payment structure from as low as $490 a month with $4,900 start payment to $1,000 a month and as low as $1,000 start payment.
Autonomy said a refundable $500 security deposit is required at the time of subscription activation.
The company noted Autonomy’s subscription includes traditional ownership costs, including annual registration and license fees, routine maintenance, roadside assistance costs, and tire wear and tear, whereas consumers would have to incur all of those costs for a lease or a loan.
“The savings get even bigger if we factor in the fuel costs for a gas-powered vehicle,” Autonomy said. “With average gas prices in California at $5.79, a consumer driving a 25 mpg ICE vehicle at 15,000 miles per year will spend $281 on fuel every month, or $3,376 annually.
“To compare, electricity expenditures on an EV are $0.248 per kWh, which results in $77.50 monthly, or $930 annually, a 72.5% savings on fuel,” the company continued. “When you add the monthly payment to the monthly gas bill, as well as routine maintenance and other fees, an Autonomy Tesla Model 3 subscription represents a savings of about $500 a month.”
In addition to the potential lower price point and savings, Autonomy highlighted that it also offers consumers the flexibility to subscribe month-to-month after only a three-month hold period.
Autonomy added that it has vehicles in-stock and available for delivery, so consumers do not have to wait six to nine months as they do for a new Model 3.
“Cheaper, faster, and easier are values that resonate with every consumer,” said Georg Bauer, co-founder and president at Autonomy. “Our new, lower prices are driving increased EV adoption and have set the stage for expansion into the San Francisco Bay Area today, as well as other markets outside of California in the coming weeks and months.”
Autonomy recently received $83 million in debt and equity financing in support of the expansion.
Kyte secures $200M asset-backed financing facility
Kyte, the company pioneering vehicles delivered to users on-demand, announced the closing of an asset-backed credit financing of up to $200 million from Goldman Sachs and the Ares Global Management Alternative Credit Team
According to a news release, the facility will accelerate the company’s fleet growth and margin expansion.
Kyte and its financing providers said they will create a more robust trip economy that services a more demanding customer with a shared vision of an electrified, autonomous future.
“We are building a real business with real assets in the real world. To get this right, we needed a debt capital provider that shares our ambitious vision and can put real money behind it. The credit facility from Goldman and Ares will catalyze our growth as we build towards the future of transportation,” Kyte co-founder Ludwig Schoenack said in the news release.
“The problem Kyte is solving is giving access to cars to people that live in cities. These cars are a core element that we wanted to get right, and we’re committed to being a leader in customer-centricity and technology-powered operational excellence,” Schoenack continued.
Kyte explained that customer expectations have drastically increased in recent years, as more convenient on-demand options have replaced brick and mortar incumbents in the grocery, restaurant and FMCG spaces.
Building on the same set of hypotheses, Kyte explained that it is creating a more accessible solution for people to get vehicle on-demand and bridging the massive gap between elevated consumer expectations and frustrating existing experiences.
An end-to-end product, Kyte said it is redefining transportation by delivering and retrieving vehicles, bypassing the “inconveniences of car ownership, car leasing, and the familiar hassles of traditional car rental.”
Kyte insisted that the next 10 years will bring about a dramatic shift in vehicle sales toward electric fleets. As a result, Kyte said it will regularly integrate new vehicle models into its fleet, and this funding ensures the capital to evolve with the industry while expanding upon its tech-forward product offering.
Currently operational in more than a dozen cities, Kyte was founded in 2019 by Schoenack, Nikolaus Volk and Francesco Wiedemann
“We are excited to support Kyte in its next phase of growth,” said Felix Zhang, managing director in Ares Alternative Credit. “With a shared vision for the future of the transportation industry, this capital solution demonstrates Ares’ focus on innovative businesses that are disrupting traditional business models.”
FINN to expand US presence
FINN, one of Europe’s fastest-growing vehicle subscription platforms, announced that it will expand its offering to western Pennsylvania, Massachusetts, Connecticut and Washington D.C., following its initial rollout in the United States in December.
The company initially launched in eastern Pennsylvania and New Jersey at the end of last year. And according to a news release, FINN said it will continue its expansion to additional markets throughout this year.
FINN said it is trying to transform the new-vehicle experience through its innovative subscription model, making it fun, sustainable and convenient to change vehicles every six or 12 months.
Further, FINN said it uniquely provides customers the ability to subscribe to a broad selection of new vehicles with no hidden fees, as the price online includes insurance, maintenance, roadside assistance and various term options.
Through FINN’s vehicle subscription service, customers will have access to different car brands including but not limited to Tesla, Jeep, Chevrolet and Nissan.
“Just months after FINN launched in the United States, we are experiencing significant demand for our services and are excited to bring our offerings to more Americans seeking freedom to choose a vehicle that fits their changing lifestyle,” FINN chief executive officer and founder Max-Josef Meier said in the news release.
“We developed FINN as a way to bring the ease of online shopping to the car industry and we are committed to providing the most convenient new car experience for our users; this expansion will help do just that,” Meier continued.
FINN’s U.S. expansion comes on the heels of a successful year in Germany, as the mobility platform reached 10,000 subscriptions.
In this episode of the Auto Remarketing Podcast, Scott Painter and Georg Bauer return to the show to discuss their venture called Autonomy, which has launched an electric vehicle and zero-emissions vehicle subscription program, starting with the Tesla Model 3.
Initially, the program will be available to consumers in California. The company plans to expand to additional U.S. markets.
“Electric vehicles have reached a tipping point, and it’s clear that the Tesla Model 3 is this generation’s Prius,” said Painter, who is chief executive officer of Autonomy, in a news release. “Financial responsibility and the avoidance of debt is also at an inflection point and subscriptions have become a pervasive, sustainable business model and a cornerstone of modern digital life.
“Autonomy is a big idea, and whether it’s freedom from long-term debt, commitment, complication, confrontation, or fossil fuels, everyone can relate to the desire for more autonomy in life.”
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
Last week, Mike Albert enhanced its vehicle subscription service — Subscribe with Mike Albert — an initiative first rolled out in August.
Along with its other three subscription options, Mike Albert customers now can take advantage of an electric vehicle membership plan
According to a news release, the EV membership plan will feature the Tesla Model 3, allowing subscribers to drive a luxury EV without the hassle of leasing or buying.
Like all Mike Albert subscription plans, the EV plan will include full-coverage insurance, all routine maintenance, concierge delivery, 30-day vehicle swap options, and 24-hour roadside assistance, all in one monthly fee.
“The world is evolving. The automotive industry is evolving. We know that electrification is here now and will continue to grow significantly in the future,” said Tom Guy, general manager of subscription services at Mike Albert.
“We want to make sure our community has a ‘try-before-you-buy’ EV option so they can utilize an electric vehicle for an extended period of time before they choose to purchase,” Guy continued in the news release.
Subscriptions are available to customers living within a 75-mile radius of Mike Albert’s flagship location in Evendale, Ohio. The monthly subscription fee allows customers to swap vehicles every 30 days.
Customers also have the option to upgrade or downgrade to other plans depending on current needs after signing up via the mobile app.
Mike Albert has sought to be a leader in the automotive electrification movement for the past 10 years, from recently creating the sales & fleet electrification director position to introducing this new EV membership plan.
To learn more about Subscribe with Mike Albert’s new membership plan, visit subscribe.mikealbert.com.
Purdy Mobility, which operates Texas dealerships and offers mobility services such as subscription-based programs, has teamed with Toyota on the automaker’s first and only vehicle subscription product.
The product, called Subscribe + Drive Powered by Toyota, is an app-based service that introduces an option for customers seeking alternatives from owning or leasing a vehicle.
The companies say that as they continue growing in the mobility industry, the new product serves a new customer base.
Purdy Mobility has launched and is currently operating Subscribe + Drive out of its three Texas locations: South Toyota in Dallas, Huntsville Toyota, and Bryan College Station Toyota.
Subscribe + Drive is an evolution of YourDriveTexas that Purdy Mobility also operated.
Users can select a vehicle and schedule a delivery through the mobile app. The membership includes the cost of a vehicle, registration, insurance coverage and routine maintenance.
This program has no long-term contracts and a one-time activation fee. Users can cancel at any time.
Members can switch between vehicles every 60-day period. Or, they can stay in a vehicle for as long as they choose.
Georg Bauer and Scott Painter, who worked together at Fair, have reunited at NextCar Holding Co.
They're also back on the Auto Remarketing Podcast, where they discuss the genesis of their company, which aims to help vehicle subscriptions scale profitably, and much more.
To listen to this episode with Bauer and Painter, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
Georg Bauer and Scott Painter worked together at Fair. And now Bauer and Painter are collaborating again with NextCar Holding Co. (NXCR).
The fintech firm, which has a mission to create a platform that enables vehicle subscriptions to scale profitably, announced on Wednesday that Bauer joined NXCR as co-founder, president and vice chairman of the board of directors.
In a news release, Bauer reiterated his beliefs about how vehicle subscriptions are part of significant changes happening in automotive.
“Vehicle subscriptions are the new frontier for automotive finance solutions,” Bauer said. “I believe that by 2025 at least 20% of all new- and used-car retail sales will be in the form of subscriptions. In essence, they (subscriptions) are today what leasing was 40 years ago. This viewpoint is also echoed by emerging EV players who are taking a subscription-only approach to drive mass adoption.”
And now Bauer is looking to be involved in that change again with Painter, who worked with Bauer when the pair co-founded Fair. Bauer has more than four decades of global auto financial services experience, serving as the CEO of Mercedes Credit Corp and CEO of BMW Global Financial Services.
At Tesla, Bauer built its financial services businesses in Europe and Asia. NXCR mentioned Bauer also is credited as being one of the early designers and pioneers of vehicle leasing.
Painter announced the launch of NXCR in October. Since that point, the company has established a range of strategic partnerships, most notably with Westlake Financial, which will provide a $400 million debt facility.
“Subscriptions offer an all-digital experience and flexible access to mobility without going into debt,” Painter said. “Georg and I have a shared passion and vision, which is why I’m energized to build NXCR and to build it with him.”
NXCR said Bauer will leverage his deep experience and relationships with automakers, their captive finance companies, independent finance comapnies and dealers to create a subscription ecosystem that enables a profitable and scalable business.
“The automotive industry is the last major sector of the economy to digitize its retail experience for the consumer,” Bauer said. “The ability to secure a vehicle via an app, then simply pay-as-you-go for as long as that vehicle serves your needs is logical given the dynamic lifestyle of today’s consumers, especially taking into account pandemic driven priorities.
“It’s clear that vehicle subscriptions strongly resonate with today's modern consumer, but they also benefit car dealers by expanding their market size through velocity,” he went on to say.
