CNBC - Automakers, dealers and start-ups now offer car subscriptions as an alternative to the traditional financing model, which increasingly involves going into significant debt. The services typically charge a flat monthly fee that bundles together all the disparate expenses of car ownership, including insurance and maintenance.
"There's a reason consumers are gravitating toward these services — what's out there right now isn't very good," said Gary Hallgren, president of Arity, a technology start-up founded by Allstate.
The average monthly car loan payment is $533 for new cars and $397 for used vehicles, according to Edmunds, which provides information on the auto industry. The typical person takes nearly six years to pay off their car loan — and nearly a third of them trade in their vehicle before they've paid it off and pick up another loan.
Financial experts and consumer advocates caution that you'll want to pull out your calculator before you abandon car ownership, which they say remains a better deal in most cases.
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