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Hertz Throws its Hub Cap Into the Ring With Subscription Services

If you don’t know what Netflix is, you’re living under a rock. A very heavy, gigantic and ignorant rock—not sure what an ignorant rock looks like but keep up. Netflix is THE subscription service for video streaming. In fact, subscription services are being implemented each day to help businesses increase their recurring revenue.

One industry that is gaining speed in the implementation of subscription services is car manufacturers. In 2015, a startup company named Clutch Technologies launched its subscription service for drivers in Atlanta, GA. And now, rental car guru, Hertz is wanting in on the action.

What is a Car Subscription Service?

Traditionally consumers had two options when it came to getting a car. They could buy or lease. That’s it. Pick your poison. But a car subscription service allows you to rent a vehicle at an all-inclusive price. The all-inclusive part is what separates this third option from leasing.

All-inclusive means that the monthly fee covers such things as roadside assistance if you break down, maintenance and insurance with full liability coverage. You can even swap out one car with another on only a few days’ notice.

How is Hertz Subscription Service Potentially Better than Other Manufacturers?

Hertz is now throwing its hub cap into the car subscription service ring. They refer to their program as “Hertz My Car.” Odd choice but memorable nonetheless. Similar to other car manufacturers’ subscriptions, Hertz provides an all-inclusive service for a flat monthly fee. Their fee is $1000 per month—technically it’s $999 but let’s be real.

The difference with Hertz My Car is the customer isn’t locked into having just one make to choose from. When a particular car manufacturer offers a subscription service, you are limited to only choosing their models. Of course, this makes complete sense but why limit your options. With Hertz, you can pick from a variety of cars from different car companies.

Currently, Enterprise also offers a subscription service but it comes in at a slightly higher price point.

What Are the Limitations of Hertz’ Subscription Service?

Hertz My Car will launch with two pricing tiers. The first will be $999 a month and will gain you access to sedans, smaller trucks, and SUVs. Tier two will be $1399 a month and will allow you to drive more luxurious vehicles, pickup trucks, and certain crossover vehicles.

Drivers will be limited to only 2,000 miles per month but this seems more than enough unless your profession requires 50% or more travel. Even then, you will only be charged $.35 per mile over the allotted amount.

Drivers will also only be allowed to switch vehicles twice a month. Although exchanging cars is painless and only requires a few days of notice, you will be charged an extra $75 for each additional swap.

Is Hertz My Car Available in My City?

Hertz subscription service is still in its very early stages. There’s sure to be moments of trial and error as they expand into new geographical regions. Currently, Hertz My Car is only available in Austin, Texas and Atlanta, Georgia.

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