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Old 13th April 2018, 09:36   #46
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Re: Car Subscriptions - The next big thing?

Car subscription services are in a nascent stage and all luxury manufactures are in a pilot mode. Mercedes-Benz is the next to join the fray.

Luxury car brands are increasingly trying out subscription-based services to get customers who want to have access to a fleet of fancy cars, rather than just picking one.

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None of the luxury car subscriptions are, it’s fair to say, inexpensive. Currently the lowest priced is still $1,800 after all. The more affordable subscriptions, meanwhile, keep the all-in-one fee idea, bundling car, maintenance, and insurance into a single charge, but do away with the ability to swap out the vehicle.

- Access by BMW will launch with two tiers, priced from $2,000 per month

- Cadillac and Porsche Passport launched to do something similar, each with the flexibility to switch vehicles on an ad-hoc basis depending on requirements.

- Mercedes-Benz Collection to start in June.

- Volvo and Lexus has said it will launch its own similar service later in the year

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Those who subscribe will have access to the cars through a dedicated app, with some Mercedes-AMG models also planned to be part of the fleet.
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From BMW, Cadillac, and Porsche range from $1,800 per month to more than $3,000.
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Book By Cadillac and Porsche Passport pilot programs offer cars that range from sports cars to SUVs to luxury sedans, depending on what the user wants at a given time.
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Audi on Demand has operated in San Francisco for a couple years now, with per-hour or daily rates. In all cases, insurance and maintenance are included.

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Last edited by volkman10 : 13th April 2018 at 09:38.
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Old 13th April 2018, 11:45   #47
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Re: Car Subscriptions - The next big thing?

I think the future resides in mobility solutions instead of pure play asset acquisition. The subscription service can work wonders if it is offered across regions / states within a large country like India.

It becomes a much more viable option when I can make use of a single subscription for obtaining a car at my disposal across various locations. Say hypothetically I surrender my car at Delhi airport (to the agency, save parking fee and allied safety hassle), catch a flight, land in say Hyderabad and pick another car with same subscription at the airport and drive away.

Portals like Yatra / Make my trip/ can play the role of mobility solution providers with all logistics around smooth end to end customer experience.

Life becomes much easier for me.

Last edited by i74js : 13th April 2018 at 11:47.
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Old 16th April 2018, 09:07   #48
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Re: Car Subscriptions - The next big thing?

Why car leasing never picked up in India? Why not car companies start leasing to customers? This is a successful model in the USA?
I am willing to lease instead of buying, give the EMI to the car companies instead of banks. Who/what is preventing this model?

(PS: I know I am late to the party, as I sense this could have been discussed already several times, But still I found it appropriate to talk in this relevant thread)
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Old 16th April 2018, 16:43   #49
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Re: Car Subscriptions - The next big thing?

Automakers in a dilemma - Can they test new business models without alienating dealers?

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Some programs have announced partnerships with dealerships to handle such tasks or maintain the vehicles, while others deliberate what role retailers should play in vehicle subscriptions.
Lessons Learnt :

- Cadillac has increased the monthly fee to $1,800 for new members, from $1,500 originally, and imposed a 2,000-mile monthly mileage limit - Customers are willing to pay.

- Cadillac says the average age of Book members is 41 — 22 years younger than the brand's traditional owners — and about 75 percent male, with the vast majority never previously owning a Cadillac.

-Porsche has had similar results from Passport, with about 80 percent of subscribers between ages 25 and 44, and 78 percent new to the brand

- subscribers aren't switching out of vehicles as often as the up to 18 times a year the program allows.

- The average member is keeping a vehicle for nearly four months at a time

Still Nascent:

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Automakers are treating vehicle subscription programs like startups: new, innovative and filled with potential — but economically and operationally unproven.
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Old 4th May 2018, 09:39   #50
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Re: Car Subscriptions - The next big thing?

The only way the subscription model would make sense is if you are going to use it for few months. For example, in my city, what I have observed is that people use cars on daily basis mostly during monsoons. For other months they prefer to travel to work on a bike as it saves a lot of time. So for a person who does that, it makes sense to subscribe for a car for only those two or three months than buying a car and using it only for three months and using it sparingly for rest of the year.
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Old 4th June 2018, 10:35   #51
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Re: Car Subscriptions - The next big thing?

Jeep to enroll into subscription market , the move would give Jeep fans wider access to the brand's vehicle portfolio.

Fiat Chrysler Automobiles will jump into the burgeoning subscription market in 2019 under its Jeep Wave membership program.
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For a monthly fee, members will have access to a variety of FCA vehicles. The program will be offered in tiers described as "good, better, best," with varied options for insurance coverage, vehicle selection and concierge services
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It's a wait-and-see," . "Jeep is an aspirational brand, so it's the best place within FCA to explore subscription models

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Old 13th June 2018, 15:31   #52
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Re: Car Subscriptions - The next big thing?

Mercedes shocker price with subscription program.

Fee starting at $1,095 undercuts rivals BMW and Cadillac!

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Mercedes-Benz may be late launching its vehicle subscription service, but it's making up for it with a shocker of a sticker price. Starting at $1,095 per month, Mercedes undercuts by half similar programs from BMW and Porsche
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Mercedes' subscription program has three tiers — Signature, Reserve and Premier — with prices ranging from $1,095 to $2,995 a month. In comparison, BMW's program — which has also picked Nashville for a pilot — ranges from $2,000 to $3,700 a month, while Porsche's service ranges from $2,000 to $3,000 a month. Cadillac's single-tier program costs $1,800 a month.

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Old 15th June 2018, 08:04   #53
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Re: Car Subscriptions - The next big thing?

Jaguar Land Rover launches UK subscription service .

The scheme, called Carpe, is available without a deposit. The monthly fee covers vehicle rent, servicing, maintenance, insurance, roadside assistance in case of a breakdown and delivery

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there is appetite for unlimited motoring packages and demand is growing rapidly for subscription services that better meet individual needs. For people who love driving premium vehicles but are tired of inflexible contracts, a subscription to Carpe is the solution
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Jaguar Land Rover has launched its first subscription service for UK drivers, with 12 months of access to JLR cars starting at £910 per month.

This base rate gives the subscriber access to a standard-spec Jaguar E-Pace. There are higher tiers in the scheme, with the full Jaguar and Land Rover ranges available for subscription. For example, users can pay £2200 a month for a Range Rover Sport HSE.

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Old 21st June 2018, 08:15   #54
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Re: Car Subscriptions - The next big thing?

The All-New Volvo S60 is now available for subscription!

Car Subscriptions - The next big thing?-subs.jpg

Car Subscriptions - The next big thing?-subs1.jpg
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Old 1st August 2018, 07:16   #55
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Re: Car Subscriptions - The next big thing?

Car Subscription war . BMW Vs Mercedes.

BMW cuts its subscription rate to battle Mercedes.

Dubbed the Mercedes-Benz Collection, the service significantly undercut BMW's earlier subscription rate.


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BMW is firing back by cutting prices and launching a new entry-level tier. Called Icon, the tier costs $1,099 per month and will give subscribers access to models such as the i3, 330i, 330e and M240i Convertible. Subscribers can also choose between two crossovers including the X2 and X3.

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Old 10th October 2018, 18:40   #56
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Re: Car Subscriptions - The next big thing?

Are we moving closer to car subscriptions ? Is this the beginning of the subscription model in India?

Mahindra to enter the car leasing market to grow PV sales.

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In the initial phase of this programme, the car manufacturer will offer its KUV1OONXT and XUV 500 at a monthly lease rental starting at Rs 13,499 and Rs 32,999, respectively.

As part of this scheme, Mahindra's rental cost will include insurance, end-to-end maintenance, on-road assistance, repairs and a 24-hour replacement vehicle – among other services that will ensure the customer a hassle-free experience while using Mahindra vehicles.
For its foray into the leasing market, the Indian automaker has partnered with Orix and ALD Automotive, who have experience in the car leasing market
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Old 10th October 2018, 18:50   #57
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Re: Car Subscriptions - The next big thing?

India suffers - more than most - from the tragedy of the commons.

We don't have the mentality to care for shared resources. Case in point - take a look at the comments on any self-drive car thread.

And if companies come in with the mindset of gaining market share, they'll want to lower entry barriers like safety deposits, which just exacerbates the problems.

I'll wait and watch to see how this space evolves, but I'm not optimistic. :-(
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Old 10th October 2018, 21:03   #58
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Re: Car Subscriptions - The next big thing?

My 2 cents, globally product companies are moving to product as a service model. If not today, this is going to be the future. I think we might have autonomous cars subscribed by us (use by single person for a longer duration) or OLA/UBER kind of companies providing car as a service for short duration (point to point mobility or shorter rental duration)

Last edited by blorebuddy : 10th October 2018 at 21:04. Reason: quick edit mode..could not preview - missed one 'a'
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Old 7th November 2018, 14:10   #59
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Re: Car Subscriptions - The next big thing?

Toyota to start the Subscription program in Japan in 2019. - Toyota's new Kinto subscription service.

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Toyota has confirmed customers will pay a flat monthly fee, which takes care of taxes, insurance costs, and servicing fees. Pricing has yet to be released, and the vehicles available through the service have yet to be confirmed.

The Japanese auto-making giant states customers can "freely select the car that they like or want to drive and enjoy it as they like
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If the customer wants to try another car, they can change cars, and if they no longer need the car, they can return it.
As society shifts from owning cars to using cars, the Kinto beloved car subscription service is a new proposal to enable customers to more freely enjoy cars
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Old 13th November 2018, 07:29   #60
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Re: Car Subscriptions - The next big thing?

Volvo’s Subscription Service success - has huge waiting period of XC40 's.

Consumers signing up now for the XC40 as part of Care by Volvo are on a wait list that stretches into 2019.

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Volvo is enjoying higher-than-expected demand for its Care by Volvo subscription program.

Launched last November with the company's new XC40 crossover as its signature vehicle, Care by Volvo allows customers to subscribe to a service that bundles car, insurance and maintenance costs into a single payment that's $650 to $850 per month, depending on the vehicle. Customers sign a two-year agreement that lets them swap for a new vehicle after a year.

Within its first four months of operation, Volvo sold the number of subscriptions it had anticipated for its first year of operation
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