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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

How Norway became a world leader in EV sales, and where it goes from here

OSLO, Norway — A silent revolution has transformed driving in Norway. Eerily quiet vehicles are ubiquitous on the fjord-side roads and mountain passes of this wealthy European nation of 5.3 million. Some 30 percent of all new cars sport plug-in cables rather than gasoline tanks, compared with 2 percent across Europe overall and 1-2 percent in the U.S. As countries around the world — including China, the world's biggest auto market — try to encourage more people to buy electric cars to fight climate change, Norway's success has one key driver: the government. It offered big subsidies and perks that it is now due to phase out, but only so long as electric cars remain attractive to buy compared with traditional ones. "It should always be cheaper to have a zero emissions car than a regular car," says Climate and Environment Minister Ola Elvestuen, who helped push through a commitment to have only zero-emissions cars sold in Norway by 2025. The plan supports Norway's CO2 reduction targets under the 2015 Paris climate accord. To help sales, the Norwegian government waived hefty vehicle import duties and registration and sales taxes for buyers of electric cars. Owners don't have to pay road tolls, and get free use of ferries and bus lanes in congested city centers. These perks are being phased out in 2021, though any road tolls and fees would be limited to half of what gasoline car owners must pay. Gradually, subsidies for electric cars will be replaced by higher taxes on traditional cars. Registration tax on new cars is paid on a sliding scale with a premium for the amount of emissions produced. Elvestuen pledges that the incentives for electric vehicles will be adjusted in such a way that it does not scupper the 2025 target. "What is important is that our aim is not just to give incentives," he says. "It is that we are taxing emissions from regular cars." Using taxes to encourage consumers to shift to cleaner energy can be tricky for a government — protests have erupted in France over a fuel tax that hurt the livelihood of poorer families, especially in rural areas where driving is often the only means of transportation. In the U.S, some would like to see the tax credit on EVs and hybrids eliminated while others would extend it. In this sense, Norway is an outlier. The country is very wealthy after exporting for decades the kind of fossil fuels the world is trying to wean itself off of. Incomes are higher than the rest of Europe, as are prices.

Best places to get your car maintained and repaired

In this era of rampant inflation and high interest rates, the challenges of acquiring a car or SUV have been well documented. And so it has never been more important to protect that expensive investment by maintaining it. In recent months, Autoblog has shared Consumer Reports' evaluation of the least and most expensive car brands to keep running, as well as tips to prolong a car’s useful life. Especially since the pandemic, a number of factors have impacted these costs: more complex vehicles, new materials and manufacturing methods, a shortage of qualified technicians and replacement parts. Since 2022, repairs costs have jumped each year by about 10 percent. This month, Consumer Reports is offering a useful primer on keeping your ride in great shape, suggesting what might be the best options for searching out a repair shop, depending, as CR says, “on your car and your situation.” Author Ben Preston identifies three basic types of repair facilities: dealership service departments, independently owned repair shops, and chain repair shops. Building up trust with a specific shop and feeling comfortable going there is important. Preston quotes John Ibbotson, chief mechanic at Consumer ReportsÂ’ Auto Test Center: "You might be able to save a few bucks by going to whichever shop offers the cheapest prices, but if you want consistent, reliable service, itÂ’s best to find a repair shop you trust and stick with it,” Ibbotson says. The story goes on to evaluate each type of service facility. HereÂ’s a breakdown of CRÂ’s findings: Dealerships These work well for owners of newer cars, especially for covered warranty work. But the disadvantage is the high labor rates common to dealer service. Satisfaction ratings for dealer service departments range from very good (Acura, Lexus, Mazda, and Volvo) to not-so-good (Jeep and Kia). Dealers are best for: Fixing infotainment system glitches: "If the screen in the center of your dash has a habit of freezing up, or the touchscreen-activated climate controls arenÂ’t working, the dealership is the most likely place to find someone with the know-how to fix problems that maybe only a factory-authorized technician can access," Ibbotson says. Safety system recalibration: "Anything from a crack in your windshield to a minor fender dent can upset the calibration of the sensors that make features like automatic emergency braking and adaptive cruise control work," says Ibbotson.