The Hidden Costs of Car Ownership: Why Debt-Free Mobility Subscriptions Make Sense for Modern Americans
In today's fast-paced world, owning a car has long been considered a cornerstone of the American dream. However, the reality of car ownership often comes with a hefty price tag that extends far beyond the sticker price. At AVVA Mobility, we've taken a closer look at these hidden costs and how our subscription platform is changing the game for both consumers and manufacturers.
The True Cost of Car Ownership
Many Americans underestimate the total cost of vehicle ownership by as much as 50%[1]. From insurance and maintenance to unexpected repairs and depreciation, the expenses can quickly add up. In fact, the average monthly car payment in the U.S. has soared to $750, not including insurance, gas, and other maintenance costs[2].
But the costs of not having reliable transportation are even more staggering. Nearly 68% of America's workers drive to their jobs every day, and 88% need a vehicle to shop for food[3]. Without access to reliable transportation, individuals face limited job opportunities, difficulty accessing healthcare, and challenges in providing for their families. This lack of mobility doesn't just affect individuals; it has a ripple effect on the entire economy.
The Subscription Solution
This is where AVVA Mobility's platform comes in. Our subscription model addresses these hidden costs and accessibility issues head-on. Here's how:
All-Inclusive Pricing: 51% of US consumers expressed interest in making one monthly payment that covers all vehicle-related costs[4]. Our platform enables OEMs and mobility providers to offer subscription models that do just that, bundling insurance, maintenance, and roadside assistance into a single, predictable payment.
Flexibility: Life changes, and so should your vehicle. Our platform allows OEMs and mobility providers to offer subscribers the ability to switch vehicles as their needs evolve, without the long-term commitment of traditional ownership or leasing.
Access to Newer, More Efficient Vehicles: By enabling efficient fleet management, our platform allows OEMs and mobility providers to offer subscribers access to newer models, which are often more fuel-efficient and environmentally friendly.
Simplified Process: We've streamlined the entire process, from application to delivery, making it easier than ever for OEMs and mobility providers to get consumers behind the wheel.
Proven Success and Expanding Horizons
AVVA Mobility has already demonstrated the viability and demand for this model through our consumer solution. Now, we're extending this proven approach to OEMs and mobility providers, offering a white-label platform that allows them to quickly enter the subscription market.
For OEMs and mobility providers, this means:
Expanded market reach, tapping into the 40% of potential customers traditionally excluded by credit requirements[5]
Increased customer loyalty through ongoing relationships
New revenue streams from in-life services, which are projected to contribute 22% to mobility providers' profits by 2035[4]
A Win-Win for Consumers and OEMs
By addressing the hidden costs of car ownership and providing a more accessible, flexible solution, AVVA Mobility's platform is not just changing how Americans access vehicles – we're enabling OEMs and mobility providers to open up new economic opportunities and strengthen communities.
For OEMs or mobility providers looking to modernize quickly and tap into this growing market, partnering with AVVA Mobility offers a turnkey solution. We provide the technology, experience, and proven model to help you navigate the future of automotive mobility.
The future of mobility is subscription-based, and it's here now. Consumers are ready for this change, and without it, both individuals and the broader economy will continue to face significant challenges. Are you an OEM or mobility provider ready to join the revolution and meet this growing consumer demand?
[1] Mark A. Andor et al., "Running a car costs much more than people think," Nature, 2020. [2] AVVA Mobility Industry Analysis, 2023. [3] Vox, "The impossible paradox of car ownership," 2023. [4] Deloitte, "The future of automotive mobility to 2035," 2023. [5] Consumer Financial Protection Bureau, "Data Point: Credit Invisibles," 2015.
