“A vehicle subscription is for people who want a car, but aren’t ready to commit, or simply don’t want to own one,” Chance Richie, Mobiliti CEO and co-founder, said. “It’s like a long-term rental, or lease, but without the things consumers dislike most such as long-term contracts and upfront costs. The added benefits include bundled insurance, maintenance, roadside assistance and access to newer, higher-end vehicle options.”
Richie said Mobiliti conducted market research and determined New Jersey is a good match for its business. Mobiliti also operates in Texas, Michigan, Pennsylvania and New York.
Effective Monday, Route 1 customers can pay between $600 per month to $1,200 per month on average to use a vehicle, which includes automotive insurance, maintenance, warranty coverage and roadside assistance.
Richie said that Mobiliti is a service for vacationers, professionals and multihome owners who are looking for an alternative to long-term vehicle rental. He plans to expand the Mobiliti service to other New Jersey auto dealerships owned by Island Auto Group, the parent company of Route 1.
Vehicles available for subscription at Route 1 include 2017 and 2018 Jeep Wranglers, Jeep Grand Cherokees and Chrysler Pacificas. To use the Mobiliti service, a customer must be at least 21 years of age, have a credit card and have a U.S. driver's license. There is no cost to become a Mobiliti member.
Josh Aaronson, owner of Route 1 Chrysler, Dodge, Jeep, Ram, said customers have asked him for a long time if they can lease cars on a monthly basis. They might want a convertible in the summer and a heavier SUV in the winter, which reflects the flexibility of the service.
“The market is going in that direction,” Aaronson said. “People might not need a car for 12 months of a year.”
“I think the sky is the limit once consumers find out about Mobiliti,” he added.
Aaronson said he expects his dealership to lease “upward of 25 to 50 vehicles per month and grow exponentially as the consumer learns about Mobiliti.”
Route 1 has idle inventory so Mobiliti will provide the dealership with a new revenue stream. The business partnership was struck after Route 1 had been talking with Mobiliti for about four months.
“We came across Mobiliti and realized it would benefit us,” Aaronson said. “We plan to roll this out at all our locations within the next three months to six months across the tristate and Florida.”
“This lease gives them the ultimate freedom,” he added. “It gives the consumers a lot of options and choices. They are not tied into any vehicle for an extended period of time.”
Aaronson said he hopes to have 100 subscribers per month by the end of 2018.
Mobiliti is working with Ally Financial to provide fleet financing credit facilities to qualified dealer partners.