Autos

Automotive Subscription Plans in a State of Flux


Then-Volvo CEO Anders Gustafson and Heith Rogers talk as Rogers signed up for Care by Volvo at the L.A. Auto Show.

While Mercedes-Benz and Cadillac may have scrapped their subscription services, these low-commitment options are still being offered by at least nine other manufacturers – as well as several third-party vendors.

These services, which offer flat-rate, all-inclusive pricing and, in many cases, the ability to swap between different vehicles, were being hailed as the future by many analysts not all that long ago.

The defections by Mercedes and Caddy raise questions about whether the subscription concept works as well as anticipated. But the fact that both those automakers are still considering ways to get back in the game suggests the low-commitment approach to automotive retailing isn’t ready to disappear.

(Mercedes kills Collection subscription service — will others follow?)

Here’s a look at the programs that remain available:

Volvo’s subscription program is a bit different than most others, and involves only the XC40 — for now.

Access by BMW: Currently being run as a pilot in Nashville, Access is one of the most expensive subscription services, at anywhere from $1,099 to $2,699 per month, depending upon the models a customer might want access to. Customers have all costs covered, including roadside assistance, and they can use a BMW app to schedule vehicle swaps.

Audi Select: Like most subscription services, the pricing for the German luxury brand’s service is essentially all-inclusive, covering fees, taxes, service and maintenance and insurance. There are two tiers, running $995 and $1,395 a month, depending on the range of Audi products a customer might want to swap into. The four-ring brand offers concierge pick-up and delivery and even throws in two days of Silvercar, an Audi-only rental service for those on the road.

Book by Cadillac: Though the automaker canceled its subscription service in 2018 after barely a year, it has indicated plans to bring back a revised program sometime this year. Whether that will happen in the face of the coronavirus pandemic is uncertain.

Care by Volvo: This was one of the very first subscription programs and is significantly different from most of the others in that it does not allow a customer to swap between different models – though they can trade in or trade up after a year. But Care covers all possible costs but for fuel, the formula that seems to be resonating most with interested buyers. The service is now available in numerous cities but continues to focus solely on the XC40 crossover. Volvo says it eventually will add other models.

Wanted a different Cadillac? Book by Cadillac participants used an app and have a different model to their home or office — before it was shut down.

Carpe by Jaguar Land Rover: This program was launched in the UK and it is not clear if or when it will come to the U.S.

Genesis Spectrum: Set to launch this year, the program falls somewhere between a conventional lease and a subscription program. Prices range from $489 to $909 a month and cover all the admittedly limited models the Korean luxury brand currently offers.

Mercedes-Benz Collection: This multi-tiered program followed the same model as Audi, Cadillac, Porsche and Mercedes. But the automaker is pulling the plug – for now. It did hint that it is looking at possible “future initiatives.”

(Cadillac suspends subscription service.)

Nissan Switch: This program launched in February in just one market, though the automaker eventually hopes to expand beyond Houston. It follows the relatively standard subscription model, with tiered pricing depending upon the products you might want to access, the cost otherwise covering everything but gas. The base, or Select tier starts at $699, Premium jumping to $899 – though you’ll pay another $100 to include the Nissan GT-R in your list of models.

Porsche builds off its Passport subscription plan to expand the options for drivers interested in Porsches.

Porsche Passport: The German automaker actually offers three different types of subscription services. This is the most traditional, if you will, offering an all-inclusive pricing plan and multiple tiers starting at $2,000 a month. Step up to the $3,000 Accelerate level and you’ll have access to products like the 911 and Panamera – though supercars such as the GT3 are not covered by any tier. Like the other manufacturers, the Passport program is available only in a handful of markets.

Porsche Drive: Think of this as a short-term take on Passport, offering access to a range of vehicles for anywhere from a few hours up to a week. Prices are steep, a 911 going for nearly $3,000 for a week.

Porsche Host: Set to launch in October, this is one of the more unusual twists on a corporate program, Porsche teaming up with Turo, a peer-to-peer car rental service to let select Porsche owners rent out their own vehicles on a short-term basis.

You might also check into some third-party programs, such as Borrow, an electric-car subscription program that includes products like the Nissan Leaf, though it currently operates only in Los Angeles. Canvas, which was backed by Ford, focuses on nearly new, off-lease models. Flexdrive also focuses on used cars, offers arrangements of as little as a week and lets you switch from one model to another, as you wish.

(Volvo’s Care subscription program key to growth plan.)

Less offers a handful of luxury models and lets you switch vehicles annually over the course of a three-year contract. Hertz My Car is seemingly up in the air given the rental car company’s recent bankruptcy filing. Others include Fair and Carma.

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