Serial auto retail, auto finance and insurtech entrepreneurs Scott Painter and Georg Bauer have launched an electric vehicle (EV) and zero emissions vehicle subscription program, starting with the Tesla Model 3. The pair have also rebranded their fintech and insurtech vehicle subscription platform NextCar under the newly acquired consumer brand, “Autonomy”.
The announcement follows close of company's $83 million equity and debt financing and acquisition of the Autonomy brand, together with Autonomy.com and the phone number 1-800-AUTONOMY (1-800-288-6666).
"Electric vehicles have reached a tipping point, and it's clear that the Tesla Model 3 is this generation's Prius," said Scott Painter, founder and CEO of Autonomy. "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."
Subscription program
Autonomy's Tesla Model 3 vehicle subscription program features a month-to-month contract after a three-month minimum term. It is designed for consumers to be able to order their vehicle in 10 minutes by providing their driver's license and a digital form of payment, and for the vehicle delivery or dealership pickup process to complete in under twenty minutes. Consumers can manage their entire vehicle subscription digitally through the mobile app.
The program provides new EV manufacturers and legacy OEMs a new distribution channel for their vehicles, one that also allows a growing "EV curious" marketplace to have a flexible and affordable way to drive and test out an EV. Autonomy said this is especially relevant as EVs start to appear in greater volumes in the used vehicle marketplaces.
Initially, the program will be available to consumers in California, with plans to rapidly expand to larger US markets. California is already a first adopter in electrification, with electric vehicles accounting for about 10% of overall sales and 42% of US EV registrations.
Currently subscribers are able to sign up for a low mileage Model 3 Tesla, with other models to follow, via Autonomy.com and the mobile app and through automotive marketplaces including TrueCar.com and Autoweb site such as Car.com and Usedcars.com.
All subscriptions include routine maintenance and roadside assistance. Consumers have flexibility to customize their monthly payments to as low as $550 a month (with a $5,500 start fee) up to $1,000 per month (with a start fee as low as $1,000). A $500 security deposit is required when the subscription is activated.
Zero emissions
The launch comes on the heels of the Biden administration's recently passed infrastructure bill, which earmarked $7.5 billion dollars to create a national charging infrastructure to support EV adoption, and following last August's presidential executive order establishing a target for zero-emission vehicles to make up half of all new vehicles sold in 2030.
Georg Bauer, co-founder and president of Autonomy, said: "The future of transportation is zero emissions vehicles. At Autonomy, we are accelerating the shift toward sustainable mobility by giving consumers flexible access to electric vehicles at affordable monthly payments.
"Vehicle subscriptions reduce the barriers to adoption of EVs, providing a low-commitment option with lower upfront costs. It is perfect for people who are interested in EVs but are not ready to make a long-term commitment due to concerns around cost or range anxiety."
