Munich-based Car Subscription Startup FINN Expands to the U.S., Will Offer Subscriptions for the Model 3, Model Y as Part of its Partnership With Tesla
【Summary】German car subscription startup FINN today announced the official expansion of its popular service to the United States in conjunction with a growing network of auto manufacturers and dealership partners, including electric automaker Tesla Inc. FINN, which was founded in 2019 and headquartered in Munich, offers a car subscription model that allows customers to rent vehicles for 6 or 12 months with all expenses included with no hidden fees.
German car subscription startup FINN today announced the official expansion of its popular service to the United States in conjunction with a growing network of auto manufacturers and dealership partners, including electric automaker Tesla Inc.
FINN's U.S. launch comes after a successful year of operating in Germany, during which the company's vehicle subscription platform reached 10,000 subscribers.
FINN, which was founded in 2019, offers a car subscription model that allows customers to rent vehicles for 6 or 12 months with all expenses included with no hidden fees. The company covers insurance, gas, maintenance and other expenses. Customers are charged a simple monthly fee that varies depending on the type of vehicle they rent.
The company aims to make driving a new car as easy and convenient as subscription services like Netflix or online shopping. FINN will also deliver the vehicles directly to a customer's home or workplace. Delivery is free of charge for all subscriptions.
Using FINN's easy-to-use website or smartphone app, customers can browse for their preferred car make and model, and directly order their chosen car subscription. The process takes just minutes, according to FINN.
"Consumers are increasingly seeking subscription models across all industries" explains Max-Josef Meier, CEO & Founder at FINN. "FINN is applying this concept to cars by offering flexible car subscriptions with everything included but fuel. By subscribing, FINN makes driving a car as convenient as watching a show on Netflix."
The company says its the first automotive subscription service to offer a broad selection of new car makes, including the popular Tesla Model Y and Model 3 sedan.
FINN's subscription model is also more flexible than traditional car leasing. With FINN, customers can subscribe to new vehicles for just 6 or 12 months.
At the end of the lease period, customers can return their vehicles to a "Local Vehicle Compound" at no additional cost, where its will be inspected for damage and other signs of use. The initial drop off location is in Eastern Philadelphia and will be operated by one of FINN's partner. FINN can also pick vehicles from a customer's home for a fee of $199.
Without the burden of a long term commitment, FINN allows drivers to try out different vehicles through its partnership with Tesla, Jeep and Chevrolet. Its U.S. launch includes six premium subscription vehicles from the three automakers.
The six vehicles are the Tesla Model 3 and Model Y, Jeep Compass and Grand Cherokee, and Chevrolet Blazer and Camaro. However, FINN said it will continually add more vehicles to its fleet that customers can subscribe to for as little as six months.
Monthly vehicle subscriptions start at $679 per month, which isn't cheap. However, when you factor in all of the other expenses of driving each month, such as insurance, maintenance and wear and tear, FINN's monthly fee is in line with the rest of the industry.
Subscribing to premium electric models costs a bit more. The Tesla Model 3 Long Range for example, starts at $949 a month for a term of 6 or 12 months. While the Tesla Model Y subscription costs $1,049 a month and includes a monthly mileage allowance of 850 miles. Depending on the subscriber's driving needs, customers can upgrade to 1,250 miles per month for an additional $109 or 1,500 miles for $189.
Once a customer places their vehicle subscription, they have 48 hours to cancel at no additional charge. After the 48-hour grace period, FINN does not allow for cancellation of the contract.
The first subscription vehicles offered by FINN in the U.S. will be made available in Eastern Pennsylvania including the Philadelphia area and New Jersey. FINN subscription service will also expand to several other states in the northeast within the coming months, the company said.
The company's business model allows flexibility through its direct relationship with car manufacturers to help put new customers behind the wheel of their vehicles.
FINN also deals directly with car dealerships and vehicle insurance provider Liberty Mutual in the U.S. However, if damage occurs due to an accident, customers are responsible for a deductible up to $1,000.
Another benefit of FINN's business model is helping drivers reduce their automotive carbon footprint with a range of electric and hybrid vehicle subscription options.
FINN's first U.S. subscribers can expect their vehicles delivered to them as early as Feb 2022. The initial delivery radius includes all of New Jersey and Eastern Pennsylvania, which is defined as any area east of State College, PA. FINN plans to expand its U.S. service area to additional urban and suburban regions throughout 2022.
FINN said it plans to hire a team of more than 100 employees in the U.S. to help build its presence in the market. The company will focus on growth, operations, customer service, finance and engineering.
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
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