Hyundai IONIQ Electric Offered Under New “Unlimited” Subscription-Based Ownership Plan

12 months ago by Steven Loveday 36

Hyundai IONIQ Electric Marina Blue

Hyundai IONIQ Electric Marina Blue

Hyundai shared a potentially game-changing announcement at the Los Angeles Auto Show. The company will offer the new Hyundai IONIQ electric through a negotiation-free monthly installment plan which includes unlimited mileage, electric charging, and scheduled maintenance. The icing on the cake is that it will not require a down payment.   Kind of like an uber-lease.

Hyundai IONIQ Electric Interior

Hyundai IONIQ Electric Interior

Hyundai says this “IONIQ Unlimited” subscription-based plan will be an affordable and hassle-free way to drive a zero-emission vehicle. The program is set to begin in California, early next year. Dean Evans, vice president of marketing for Hyundai shared:

“We’re excited to offer Ioniq Unlimited as an innovative, worry-free means of clean, zero-emission vehicle ownership along with our new Ioniq Electric vehicle.

This new ownership experience adds to the satisfaction of driving a no-compromise, clean vehicle with unlimited mileage and zero hidden costs. It was time to make clean vehicle ownership easy for everyone.”

Consumers that partake in the new, innovative vehicle ownership plan, will be able to take care of the selection process online (from a list of vehicles available at their local dealer). Once they choose the vehicle and the 24- or 36-month term, pricing will be specified. Even the credit application is taken care of online, ahead of time.

Upon visiting the dealer, the purchaser will simply finish the final paperwork and drive the car away. Hyundai is touting the process as being “transparent” and “haggle-free”, with no hidden agenda or stressful, time consuming headaches (often associated with nearly EVERY car purchase).

This is just one example of an automaker trying to think more like a consumer, and as such, to provide an experience that people will appreciate. We have seen such a mindset from the likes of Tesla, but few other automakers are on board with this mentality. Hopefully, Hyundai’s new venture helps to pave the way for “how it should be” in the future – and of course, that we see that planned 200 mile upgrade for the IONIW Electric in 2018 of course!

Source: LA Auto Show 2017* (VPO/PR Newswire)

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36 responses to "Hyundai IONIQ Electric Offered Under New “Unlimited” Subscription-Based Ownership Plan"

  1. JyKiaNiroPHEV says:

    This is the future of car ownership, better lack of ownership.

    How are they going to provide free charging? Is it like Nissan’s charge for no charge program?

  2. SparkEV says:

    How are they going to handle charging? If it’s DCFC, that could clog up all DCFC like Leaf and i3 are doing now. It’s good that Chevy will have mandatory DCFC at its dealers and hopefully not open for free charging.

    Free charging SUCKS! Hyundai, don’t be a Nissan / BMW!

    1. Nick says:

      I love free charging.

      Please be like Nissan / BMW!

      😀

    2. Bacardi says:

      GM stated there is zero requirement for it to be available to the public which means it would be up to the dealer to make the decision…If they’re going to spend the big buck on one single one, why let the public have access to it? You going to want to recharge the Bolt if the range gets too low just before a delivery…Keep it in the service bay and install several cheaper L2s outside if the dealer wants nice…

      For Hyundai, I would bet charging will be free but is included in the price…

  3. SJC says:

    Read the fine print, it is unlikely you will be able to use it for Lyft.

  4. The unlimited miles part is great – with our EV leases, it is the lease mileage that limits us; not the range.

    1. Bacardi says:

      Many leasing companies allow you to prepay miles, in many cases 20K/year…While yes it’s more expensive, imagine if you paid $40K for a base Volt in 2011 and are trying to sell it today, five years later, with 100K on it…You wouldn’t even get $10K for it…Helps to shop around since extra miles can vary are most are either $.15 or $.25…

      1. Michael says:

        Hey now I have a 2011 Volt with 114K on it that I paid $44K loaded. Wait are you telling me its worthless lol guess I’ll have to drive it another 5 years without spending a dime on gas! Not sad about that. Car still looks brand new and I haven’t lost even a mile of range. Still get the same 38 I always got.

  5. DJ says:

    And how much will all this unlimited stuff cost? Could be great for some people but horrible for others.

  6. Lawrence says:

    Very curious what that monthly payment will be and how that will stack up against a traditional lease.

  7. MrEnergyCzar says:

    I’m guessing it will be $299 a month.

    1. Lawrence says:

      I’d pass if it were $299 a month. The only attractive thing about their proposal is the unlimited mileage, which doesn’t compete against lower monthly on leases of other EV’s + additional miles.

      Less than $200/mo, I’d consider this car.

    2. Rich says:

      Price is everything. At $200/mo I would settle for a 124 mile range BEV Ioniq sedan. At $250/mo, it’s a good deal but I would be shopping around. At anything in the $400/mo. or higher price range, I’ll order a second Model 3.

  8. Bacardi says:

    Kudos to them; mainly the online part…

  9. jimijonjack says:

    I’ll Take It ! lmao

  10. Nix says:

    This will be interesting, since it violates a number of state’s current motor vehicle franchise laws that ban the manufacturer from fixing prices on behalf of the dealerships.

    This might be limited to “Participating Dealers” in order to get around those laws. In that case, there will likely end up being a patchwork of participating and non-participating dealerships who set their own lease terms (for better or worse).

    1. Chad says:

      Just give the dealers a piece of the pie and they shut their mouth around it. As long as Hyundai gives the dealer an incentive, they won’t care.

      1. Nix says:

        Hyundai will have to completely turn the traditional dealer incentive model upside down for the dealerships to just chill and accept.

        Because here is how it works. Let’s say a car maker sells 1,000 units in a state per month. The car maker then sets bonus targets for each dealership that would collectively require maybe 1,100 units to be sold for all the dealerships to get their bonuses.

        The numbers are set at a level where all the dealerships most likely won’t hit their month end bonus targets. So the bonus system pits dealerships against each other for who can steal sales from each other in order to hit their bonuses.

        The number 1 way that dealers compete against each other is price. The math is if they sell their target they get their bonus, so they can sell each car for less. If they don’t make their numbers, they have to sell for higher prices to still make a profit.

        This would completely rob them of playing with the prices as a tool. Some dealers won’t like the deal, because they will want to undercut other dealers in price so they can hit their monthly target. Other dealers won’t like it because they still want to go whale hunting and sucker some customers into huge profit margin deals, so in case they don’t hit their bonus target, they will still make a profit over the whole month.

        Either way, I’m betting the dealerships aren’t all going to be happy having to compete with other dealerships on only customer satisfaction, because the price is the same everywhere….

  11. James says:

    Shades of EV-1 all over again!

    So how does a “lease” qualify technically as
    “ownership”? It’s only ownership if you opt to buy the car at the end of the rental period.

    A leaseholder does not have the freedoms an owner does. One is under distinct limitations under a lease period.

    I haven’t seen anything in this article nor description that says one can buy the vehicle after this agreement.

    So for now, my opinion is up in the air. I’m against programs like this if there is also no option for the consumer to purchase the vehicle in a traditional way.

    This type of program gives all control to the manufacturer to pull in these vehicles and crush them ala EV-1 and Honda EV Plus.
    Both controlled leases that ended up in piles of crushed cars.

    I suppose the big question is: When will we see electric and electrified cars WITHOUT asterisks attached? Just mass produce battery packs and sell them alongside the gas-burners and let the market decide.

    OK – Wishful thinking, indeed…But why do we have to wait for the success or failure of Tesla to pull off 500,000 units sold/yr. to begin to see this legacy automaker B.S. turn to free-market competition?

    1. Brett says:

      Yeah it sounds like the exact same thing. I imagine people will think this is great anyway though because good is dumb. 🙂

    2. hari says:

      As long is its not lease only, you have nothing to complain. And I haven’t heard that its lease only.

    3. Rich says:

      I understand your concern around the EV1. However, leases make financial sense.

      I can lease a $25K vehicle with maintenance, on-star, and satellite radio included for $230/mo. (includes down payment) on a 24 month lease. This means the vehicle costs me $2,760 per year. I can lease 5 brand new vehicles over a 10 year period for the same cost of purchasing one $25K vehicle + financing costs.
      Which would you rather do, drive 5 new vehicles and never pay for maintenance or repair costs over a 10 year period or have to drive 1 vehicle for 10 years and pay for maintenance + repair costs + rust + etc.?

      With abundant low cost leases, it’s hard to financially justify buying a new car.

  12. Michael Will says:

    Also interesting the Renault Zoe where you ‘rent’ the battery portion of the car in order to lower the base price with the hope that it would get upgraded should it ever degrade.

    1. James says:

      True. We also saw this with their Twizy – which I was pretty interested in if they started selling it over here as a Nissan…But for that battery rental nonsense.

      The Better Place model flopped miserably. Kind of like buying the car but renting the gas tank.

      1. Assaf says:

        BP flopped for a variety of reasons, but renting out the battery was not one of them (to wit, it didn’t bury the Zoe).

        If you want to learn more, there’s this:

        http://theonlydemocracy.org/2012/10/how-not-to-introduce-new-green-tech-the-cautionary-tale-of-better-place/

  13. Steven says:

    To me, “Free Charging” only works if it’s at least, at every Hyundai dealership coast to coast, available on demand, 24/7/365, without limitations on frequency or duration of use.
    And that there won’t ever be some ICE vehicle parked in such a way that it impedes access.
    It should also be free of snow and ice. Also, well lit at night.

    I’m sure I left a few details out, but without these, it’s a non-starter.

    1. SparkEV says:

      If they made free charging so convenient, people will rather charge there than at home. Then when you need to use it, there will be long waits. The best way to discourage EV is to give free charging.

      Free charging SUCKS!

      1. Steven says:

        You make the assumption that everyone can charge at home.
        My townhouse doesn’t have a garage or driveway. My HOA prohibits the installation of a charging ped in front of individual units, and won’t install one in the common parking lot.

        So, unless I move, I’m SOL.

        1. OCRyan says:

          No, not SOL. You just need to pay for charging and public chargers. Chargers need to cost nominally more than home charging to discourage using public charging stations like gas stations. EV’s are meant to be charged at home. There are exceptions, like yourself, where that can’t be done and you will need to pay a fee for public charging (just like people pay for home charging).

        2. WadeTyhon says:

          I am in an apartment and moving to a new complex in about 3 months which has EV chargers on site. Totally worth the effort – I’d rather support the newer built complex. But condo/townhome owners with an overbearing HOA are indeed SOL.

          But having said that – to me, using public chargers is better when the charging isn’t free. When it’s free, people who are able to charge at home go out of their way to charge at a public charger.

          When it’s not free, only those who truly need a charge are going to use it so less chance of having to wait on someone. 🙂

        3. SparkEV says:

          If you must use public charger and cannot charge at home, you should be even more against free charging. With free, you will be competing for charging with all those who could otherwise charge at home. Instead of 30 minutes to charge, your sessions will become hour(s) to wait before being able to charge.

          1. OCRyan says:

            +1

            Also, stop putting the chargers in the prime parking locations. I’d rather walk and be ICE’d less often.

  14. Someone out there says:

    It sounds great but it also sounds expensive. They should make a deal with some dcfc operator to provide free charging on the move as well.

  15. Rich says:

    Some of the ICE leases include all maintenance, so the only additional cost is gas on a 2 year lease.
    I’m glad to see Hyundai offer a no hassle lease with maintenance included. Unlimited electricity sounds like a marketing gimmick to me. Either way, if Hyundai does what Nissan does with the no charge to charge, it will be a nice benefit that may get used a few times a year.

  16. WadeTyhon says:

    I think this concept is good to get people to try their first electric car. Less pressure. Low barrier of entry. Good exposure.

    If it doesn’t work for them, they just switch 2 years later.

    If it does work for them, then they will most likely want to drive on electricity for the rest of their lives.

  17. Bacardi says:

    The more I think about this, while still a step in the right direction, doesn’t seem all that innovative, lots of this already exists but fails at the execution…

    Go on any dealers website, majority will list their vehicles with a “XXXX discount” and then you have the option to fill out a credit app online…What SHOULD happen is that a salesman should calls you up within an hour to arrange an appointment…Reality is often, you get an immediate canned email saying someone will contact you shortly (no one does), the next day you get another canned email from the G.M. personally thanking you for picking their dealership, followed by another email from the dealers service dept telling you about their Tues-Wed only oil change special and finally you get a survey email asking you to rank the experience…