AutoNation Inc. is partnering with Fair, a used-vehicle leasing subscription service, to offer customers a flexible lease option, the companies said Thursday. The partnership is AutoNation’s latest of several alliances with digital startups.
AutoNation, the largest dealership group in the U.S., will begin offering Fair’s service at its California dealerships this month. The dealership group will likely add it in South Florida in the first quarter and continue to other markets from there, said Marc Cannon, chief marketing officer.
On Oct. 30, AutoNation announced a $50 million investment in Vroom, an online used-vehicle retailer, and in November 2017, it partnered with Waymo to provide maintenance and repairs for Waymo’s fleet of self-driving Chrysler Pacifica hybrids. The partnership has since expanded. Now AutoNation offers some of its customers Waymo rides instead of a loaner during service appointments.
“We are going continue to look at opportunities as we are clearly seeing how the digital and other models are playing into the auto retail segment,” said Cannon.
Through Fair, which launched in August 2017, consumers can use a mobile-phone app to shop for used-vehicle leases with no term. They scan their licenses to get prequalified for a range of monthly payments that include maintenance, a warranty, insurance and roadside assistance. Rather than stick to a two- or four-year lease term, with five days’ notice, customers can return their vehicles whenever they want.
The partnership will give AutoNation customers an alternative to traditional ownership by offering a more flexible option, AutoNation CEO Mike Jackson said in a statement. “From a dealer’s perspective this will help increase the velocity of the used-car business while also enhancing our access to new customer groups such as millennials and Gen Z,” he said.
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