Electric Vehicle Subscriptions
Scott Painter, Founder & CEO, Autonomy joined Grayson Brulte on The Road to Autonomy podcast to discuss Autonomy’s approach to electric vehicle subscriptions.
The conversation begins with Scott discussing why he founded Autonomy.
I think that great entrepreneurs, great companies have to solve a real problem.– Scott Painter
One of the key hurdles to the adoption of electric vehicles is affordability and that is the problem that Autonomy is solving with their subscription model. For those individuals who are uncertain about electric vehicles and/or concerned about range, Autonomy offers a low commitment way to discover and experience an electric vehicle without a long-term commitment.
Because Autonomy owns the fleet and gathers data in real-time about the vehicles, the company is able to offer time based episodic insurance for subscribers. With this model, subscribers only pay for insurance when they are driving the vehicle, leading to a lower operating cost than a traditional lease.
Overall, an Autonomy subscription is about 15% less than a traditional lease. When compared to a Tesla lease, an individual needs to have a minimum 720 FICO score in order to qualify for a lease. With an Autonomy subscription, an individual can secure a subscription with a minimum 640 FICO score.
What we are really focused on is giving people the ability to get flexible access to mobility without necessarily having to go into debt.– Scott Painter
The other key differences are that an Autonomy subscription is minimum of three months as compared to traditional Tesla lease that is 36 months. A Tesla lease will report as debt on consumers credit reports, while an Autonomy subscription will not report as debt.
The fact that a subscription, an Autonomy subscription in particular does not show up on your credit report as debt is a very big deal. Which also allows us to open up another really key value proposition, which is you can pay for it with a credit card. You can not pay a traditional car lease or a car loan with a credit card, because it is illegal to pay debt with debt.– Scott Painter
With rising consumer credit card debt, Grayson and Scott discuss how Autonomy approaches underwriting and how the company is constantly evaluating potential subscribers from a credit risk standpoint. In addition to the consumers’s credit report, Autonomy also looks at potential subscribers insurability.
The goal here is to have dramatically better outcomes than a traditional auto lender or auto lessor. We just do not want to have bad debt on the books. We want to see good quality revenue coming in.– Scott Painter
To scale up the business, Autonomy has placed an order for nearly 23,000 electric vehicles from 17 different automakers for a capital expenditure of $1.2 billion order. This order represents 1.2% of the projected U.S. electric vehicle production through the end of 2022.
Wrapping up the conversation, Scott discusses how he plans to expand the business in the coming years.
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Recorded on Thursday, September 8, 2022