AutoNation Announces “Micro” Leasing Service for Consumers Seeking Shorter Lease Terms

Automotive retailer AutoNation (NYSE: AN) recently announced a new “micro” leasing program offering terms of six or 12 months, allowing 800, 1,000, or 1,200 miles of driving per month. Traditional leases typically start at 24 months, with 36 months being the standard. Consumers can select their desired vehicle and get prequalified through a soft credit pull via the AutoNation Mobility online portal, with vehicle pickup taking place at one of AutoNation’s 300 stores. The leases also include routine maintenance, such as oil changes and tire rotations, vehicle registration, a limited warranty and maintenance plan, and roadside assistance offered by the manufacturer. Consumers must provide their own insurance. Once the lease ends, customers have the option to purchase the car, extend the lease, or find a new vehicle to micro lease.

As noted by Automotive News, these micro leases appear to be similar to a car subscription, which combines vehicle use with services like registration, maintenance, insurance, and roadside assistance into a single monthly payment. AutoNation is marketing these micro leases to consumers seeking greater convenience and flexibility than is offered by traditional leases. They are currently available to customers in Southern California or Florida, with plans to expand to additional markets in the near future.