The Q&A With Fair Co-Founder And Vice Chairman Georg Bauer

Listen to this article

Fair is an app that lets you subscribe to a pre-owned car the same way you subscribe to other services that you use: right on your phone with the flexibility to walk away any time. Below is our recent interview with Georg Bauer, Co-Founder & Vice Chairman of Fair:

Q: Could you provide our readers with a brief introduction to Fair?

A: In an age where everything we want is just a few taps away, we thought it was crazy that getting a car meant spending the better part of a day at the dealership and potentially being forced to take out a loan that far outlasts the time you’ll likely enjoy driving the car, which will lose much of its value while you own it.

With Fair, there’s no loan, no negotiation, no physical paperwork, and no set term on how long you have to keep your car. We can even deliver the car to your driveway for free. You just enter your information to get approved, shop for your car in-app, sign for it with your finger, and drive it for as long as you need it. And if your situation changes or you just want to drive something else, you just let us know and we’ll pick the car up.

We’ve got over 20 top car brands available from top dealers, all of them less than five years old and with fewer than 50,000 miles. It’s basically a giant dealership right on your phone – except you don’t have to leave your house, haggle with a salesperson, line up outside financing or do any of the countless other uncomfortable things involved in buying a car.

Recommended: Mary’s Gone Crackers – A Certified Organic, Gluten Free, Allergen Friendly And Vegan Snacks Company

Q: How exactly does it work? Can you walk us through your process?

A: It’s actually very simple. You get started by downloading the Fair app and entering your email and phone number to get preapproved for a monthly payment limit. From there, you can start shopping for cars that fit this budget. You can start a list of your favorite cars by liking them in the app, selecting the one you want, and signing for it right then and there.

We’ll confirm that the car is ready and available at the dealership and then you can set up your payments right in the app, including an upfront start payment that covers your title & registration, a refundable security deposit and ongoing monthly payments. Fair also includes routine maintenance, 24/7 roadside assistance, and a limited warranty.

When that’s done, we’ll reach out to you with times to pick it up, or in most situations, give you the option of having it delivered for free within 50 miles. If you choose to pick it up or if delivery isn’t available in your area, getting your car is as simple as showing your license and insurance at the dealership, taking the keys and driving it away.

From there, you can keep the car as long as you want and turn it into us with just five days’ notice.

Q: Why are car subscriptions becoming so popular?

A: Car subscriptions are popular for the same reason subscriptions are popular in other industries: People are realizing there’s no benefit to actually owning a vehicle. You don’t buy a gym when you want to work out. Nobody even buys albums any more. All modern consumers want is to access the services that are important to them without overpaying for them or being stuck in a huge commitment.

A big part of this is that you should only really buy things that you are going to use forever or that will go up in value. Fact is, most new cars will lose 20%-30% of the value in the first year and about 17% every year after. Meanwhile, the average auto loan is now over five years, and a record 7 million Americans 90 days or more behind on their auto payments, according to the Federal Reserve Bank.

Car subscription platforms like Fair essentially allow people to skip the risk involved in carrying a loan over the course of several years and drive the same way they stream their music and watch movies. Most of your driving costs are included, you can access the car you want right on your phone, and simply turn it in when you’re done.

Q: Why are more people now, more than ever, getting used cars?

A: The simple reason is that we’re finally waking up to what our parents always told us: Going with a pre-owned vehicle is the smart choice.

According to Kelly Blue Book, it costs around $37,000 to buy a new car, while the average used car costs around $20,000 and looks nearly identical.

Even people who can easily afford to buy new are increasingly choosing to get a used car instead. In fact, the percentage of consumers with prime credit who financed pre-owned cars instead of new ones hit a record high of 62% in the first quarter of 2019, according to CFRA research.

Fact is, used cars are simply the more responsible choice – not only economically, but environmentally as buying used fits into today’s “reduce, reuse, recycle” ethos and decreases demand for new manufacturing and unnecessary waste.

Recommended: 7 Ways To Retain The Newly Acquired Customers On Your Website

Q: In uncertain times, why is Fair the best way to get a car?

A: Fair is the best choice during these times because it’s a flexible, loan-free way to get a car with absolutely no long-term commitment.

When you take out a loan, you’re making a huge bet that your ability to pay and your need for the car won’t change during the length of the loan. If you move, change jobs, or face any kind of economic hardship, that huge loan or iron-clad lease you signed to get your car isn’t going anywhere.

Why take the risk? With a subscription, you can just turn the car in if your situation changes and move on with your life.

Q: Can you give us any hints as to what else we might expect to see from Fair this year?

A: Actually, the future has never felt harder to predict. All I can say is that our total focus is on making sure our customers, team members and families are safe and well-served during this extremely difficult time.