Consumers can browse vehicles online and prequalify via a soft credit pull and see their maximum monthly payment. Vehicle pickups will happen at an AutoNation store.
At the end of the micro lease, customers can extend their lease, enter another micro lease or buy the car, according to the website.
AutoNation declined to comment on the program.
The micro leases appear similar to a car subscription, which typically combine insurance, maintenance and vehicle use into a single monthly payment. The concept has spurred initiatives and startups from several dealership groups in the U.S. in recent years. However, depreciation, insurance costs, and a lack of public awareness have emerged as significant barriers to profitability, and some services have shut down in a matter of years.
Many automakers continue to see potential in the model, though, such as Porsche Drive and Care by Volvo. Proponents cite the popularity of subscriptions in other countries, such as Germany.
Marketing for these programs emphasize convenience over long-term commitments.
Other subscription programs have centered themselves around EVs and providing the low-risk opportunity for consumers to try them out.
AutoNation ranks No. 2 on Automotive News’ most recent list of the top 150 dealership groups based in the U.S., retailing 229,971 new vehicles in 2022.
