For this two-year-old startup training its sights on shaking up the car financing market, their service is all about allowing people to drive cars without the burden of committing to pay for it.
New mobile app Fair enables users to pick a used vehicle, process and approve the transaction, and coordinate details of the car's release with a few clicks on the smartphone. The service entails a monthly subscription, way flexible than a lease, which runs up to three years at most, or an auto loan which can go as long as five to six years.
In explaining the app's concept, Fair founder and CEO Scott Painter pointed out that the startup empowers users to have a car without worrying that they are tying themselves into a lengthy commitment, which leases or loans do.
"What we're doing is giving mobility without going into debt with a car loan," Painter explained in a recent television interview.
Given the rise of pay-per-use apps like Uber and AirBNB, Painter believes the market is ready for their app, which tries to bring the idea that car ownership does not need to be a big burden in terms of debt.
In its website, the company explained that their app gives people an additional option in terms of car ownership, saying the monthly payment subscription scheme allows users to have a vehicle for more than a couple of months without a need to engage in a long-term commitment.
"Our flexible model was made to handle all the twists and turns that life throws your way," according to the company's website. "You make a one-time Start Payment per car, followed by a low monthly payment for as long as you keep it, with the freedom to walk away at any time."
Once the user installs the app, available on the App Store or Google Play, it requires the driver's license to be scanned to pre-qualify, and an active bank account to be linked to the Fair app. Afterward, the user will be able to view the used cars that are available.
The Start Payment pertains to an upfront fee which is based on the value of the vehicle. The fee is non-refundable after three days or 100 miles.
If the user wants to change to another car, the individual needs to shell out another start payment for the new car.
Included in the monthly fee--which averages US$360--is the standard roadside maintenance service as well as warranty. Month-to-month auto insurance is an optional add-on, which entails a separate cost.
Currently, Fair is available in 22 cities and 12 states in the U.S., and Painter hopes to bring the service nationwide by the year's end.
