FCA to Pilot Car-Sharing
If you have a vehicle that is part of the FCA (Fiat Chrysler Automobiles) family then you’re in luck. FCA has rolled out a new way to help drivers experience the different models they have to offer across all their brands.
FCA is hoping to share their rides through a three-month pilot with peer-to-peer car-sharing using startup Turo. FCA will start with a trial subscription service. Turo lists 350,000 models across dozens of brands on their platform so it’s a no-brainer as to why the FCA would want to partner with them and use their services.
Although Turo presents itself as a way for car owners to subsidize their car payments it is now collaborating with FCA and Avis Budget Group on this three-month subscription service that allows Jeep owners to swap their vehicles for other FCA brand vehicles, such as a Ram pickup or Dodge Challenger.
Trials will start at the end of this week (January 28, 2019) in Boston with the first 100 owners who register for the pilot. However, this trial will only run for three months.
It’s a marketing strategy that will benefit the younger generation or someone who wants to get their hands on driving a different vehicle but don’t know if they want to completely invest on a different model just yet.
“All these people who are casually going, ‘Is it for me or not for me?’ I can then get them as potential prospects to sell them a brand-new Wrangler,” said Timothy Kuniskis, head of the North America Jeep Brand, in an interview at the Detroit auto show last week.
“We’ll find out what’s good and what’s bad, what customers like and what they don’t like, and ultimately from that, we’ll decide if we want to do this as something we promote to our dealerships at the time of sale,” as it was stated for detroitnews.com
The drive for trying a subscription like car-service has been high due to the sudden popularity on Airbnb Inc and Uber Technologies Inc., which has the younger demographic excited for what’s to come.
How can someone know if this subscription is something they want to get their hands on? Last month Turo announced on their blog the use of the Carculator (yes, that’s right, Car-culator!), which allows car owners to calculate how much it would cost to rent a specific car for a day in locations based out of The United States and Canada.
Based on data that was pulled from the Carculator, it was determined that Jeep models can provide an excellent return on investment for Turo hosts — the Jeep Wrangler ranked number one in the Trucks & SUVs category.
“We’re delighted to note that the Jeep Wrangler and Jeep Cherokee took the top two spots in the study’s SUV category. The Wrangler has consistently been one of the most-booked vehicles across the Turo marketplace, providing memorable trips for guests and significant average earnings for hosts,” as was posted on their blog, turo.com.
Let’s talk numbers.
The Jeep Wrangler averages about $91 on a daily and $851 on a monthly basis. According to the chart on the Turo website, the Wrangler is rented about 14 days out of the month. Another FCA model available is the Fiat 500 which averages about $38 daily and $474 a month. The Fiat rents out about 17 days out of the month.
So how exactly were these numbers calculated?
Those numbers came from November 1, 2017, to October 30, 2018, data where active vehicle models, years 2012 and newer with at least five completed trips, were used. The average for each model (important word), in both price and days per month, factoring in the 25% take rate from the Turo Standard protection package, was based on the Carculator results. The actual earnings may vary by individual vehicle, host, market area, amongst other factors that play into pricing.
The subscription fee will cover insurance and concierge services that may include vehicle delivery to subscribers, according to thecarconnection.com.
If a buyer wants to test a model they are interested in, then they will have the opportunity to test-drive someone else’s car to make the decision easier for them. And for those who are willing to offset the monthly cost of their vehicle, by letting someone else test drive their vehicle, this program appears to be a win-win.
The biggest challenge that Kuniskis (Detroit News) has encountered prior to the pilot car-sharing dropping has been the pricing and delivery. “Avis will supply the inventory for the pilot to spare local dealers the depreciation risk of holding cars. Participants will be able to flip models as many as six times during the three-month period, two with delivery and the rest requiring them to pick up the vehicles themselves,” said Kuniskis
If you’re interested in test-driving an FCA approved model, make sure to check them out at the Cape Coral Chrysler, Dodge, Jeep, RAM dealership.