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Fuel Fact of the Week

Fact #1038:Companies Now Offer Vehicle Subscription Services



There are a growing number of alternatives to buying or leasing a vehicle. The latest is a vehicle subscription which allows the use of a vehicle for an all-inclusive monthly fee. The monthly fee typically covers a newer model vehicle (not necessarily brand-new) with insurance, maintenance, and roadside assistance. Most services also have an initial subscription starting fee. One of the perks to these services is that the subscription owner can change the vehicle model they drive during the subscription period. Most of the services have mileage limits, and some have other restrictions, such as non-smoking or pet policies. Although many of the subscription services are providing vehicles in selected localities now with plans to expand later, one service – Care by Volvo – is available nationwide. One of the questions most often asked: "Is a subscription service less expensive than buying a vehicle?" Edmunds estimated the cost of a subscription service versus buying the same vehicle. They found varying answers because the services vary greatly but estimates from one example are shown.

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Past Fuel Facts of the Week.

Question of the Month

How is fuel economy determined and reported for alternative fuel vehicles?

Last month we learned about how the U.S. Environmental Protection Agency (EPA) determines and reports conventional light-duty vehicle fuel economy ratings. While alternative fuel vehicle (AFV) fuel economy testing is largely similar to that of conventional fuels, the EPA makes some adjustments to account for different vehicle technology and fuel energy content. By tailoring AFV fuel economy testing and reporting, the EPA is able to provide apples-to-apples comparisons and allow consumers to make informed decisions.

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