[alex2364]

     Featured on BIMMERPOST.com

https://www.theverge.com/2018/1/16/1...auto-show-2018

Not to be left out by rivals, BMW and Mercedes-Benz appear to be joining the world of automotive subscription models that cover all of the fees required with car ownership or leasing under one payment.

Both BMW and Mercedes are expected to announce pilot programs for a subscription service that covers not only car payments, but maintenance and insurance, Automotive News reported on Tuesday. They would join the likes of Audi, Cadillac, and Porsche in offering customers a simplified payment structure and the flexibility to swap to a newer car sooner than a traditional lease or finance plan, or a higher-quality vehicle than a daily rental from the airport. BMW Group and Daimler, Mercedes’ parent company, already run car-sharing firms.

“We are in the phase of looking at it and evaluating together with BMW Financial Services,” BMW of North America CEO Bernhard Kuhnt told the publication this week at the Detroit Auto Show. “And if we are going to do it, we are going to pilot it first to learn more about it.”

Mercedes-Benz’s global sales chief Britta Seeger echoed Kuhnt’s feelings on the need to try it out, although that company may try it in more markets, whereas BMW plans to pick a single point. A BMW representative did not comment on the story to The Verge. A Mercedes spokesperson confirmed Seeger’s comments, but said details of a pilot program would be announced at a later date.

The biggest test for subscription-based services may come this spring when the new Volvo XC40 is offered with the company’s Care by Volvo subscription ownership service that rolls the car payment, insurance, and maintenance together, starting from $600 per month, with the ability to get a new car after 12 months. It appears the model of subscribing to a car or car service, rather than owning or leasing a car, may be attracting other automakers as they search for ways to attract new customers.

[turboawd]

interesting. but i assume it will cost more.

[The Automotive Enthusiast]

Volvo started this. This should be interesting.

[uniqueMR]

Interesting...

[c1pher]

$600 for their lower end car too. I wonder what the mileage limitations will be.

[Meeni]

That's a lot more cash than leasing, and leased car are under manufacturer warranty and long service intervals that makes them almost free to operate except for gas and tire. Sounds like a sucker trap.

[cwhands]

So if you get bored easily you can switch cars sooner. Until we get more details about it, hard to say if it would be appealing to most.

[dmboone25]

Originally Posted by Meeni

That's a lot more cash than leasing, and leased car are under manufacturer warranty and long service intervals that makes them almost free to operate except for gas and tire. Sounds like a sucker trap.

I hear what you're saying, but it depends on the details of how the program is set up and how often you can switch cars.

Imagine if you could have a Boxster in the spring and fall, coupe 911 for the summer, and a Macan for the winter months. Now THAT could be cool.

[ando]

Dear BMW. I would be interested in joining a pilot. Please contact me

[ThaiBruin]

remember this includes insurance as well. I'd be interested especially if you can get a new car every 12 months.

[F32Fleet]

I told you so.... more mundane car interiors on the horizon.

[beammeupscottie]

My BMW SA told me about this last year. He noted Cadillac was already doing it. Sounds like a real possibility for the future of the relationship between car companies and their customers. This is a good idea imho.

[DrunkTyrion]

Originally Posted by dmboone25

I hear what you're saying, but it depends on the details of how the program is set up and how often you can switch cars.

Imagine if you could have a Boxter in the spring and fall, coupe 911 for the summer, and a Macan for the winter months. Now THAT could be cool.

Lol you can Porsche offers it but only in Atlantic City right now. It's called Porsche passport or something

[8k_v8]

Sounds like a good idea. I wonder if this will apply to the full lineup

[alex2364]

Originally Posted by DrunkTyrion

Lol you can Porsche offers it but only in Atlantic City right now. It's called Porsche passport or something

It's in Atlanta, not Atlantic City.

[ska///235i]

Anything for $300 per month?

[DrunkTyrion]

Originally Posted by alex2364

It's in Atlanta, not Atlantic City.

Lol mb.... just glanced at it somewhere.

[Haywood]

Originally Posted by DrunkTyrion

Lol mb.... just glanced at it somewhere.

Well, based on your username, you were drunk at the time.

[JustChris]

BMW of North America CEO Bernhard Kuhnt

:

[Teufel_Hunden]

Perpetual car payments with nothing to ever show for it. Yes, a car is a depreciating asset, but in the end you do have something of value.

I'm skeptical.

[Habber]

If only this plan existed with marriage....

[dmboone25]

Originally Posted by Teufel_Hunden

Perpetual car payments with nothing to ever show for it. Yes, a car is a depreciating asset, but in the end you do have something of value.

I'm skeptical.

This is a good topic of conversation.

I don't even look at a car lease or purchase agreement from the asset point of view, which is why I usually lease. I have only purchased two cars in my life, where I had a note and payment schedule, and I didn't make it to the end of either term before I was ready to get something different. If I could do a one year lease, that might be perfect for me.

The argument you make is a good one, but with a caveat. It's truly only beneficial to buy a vehicle if you keep it for a decent period of time after it has been paid off (and you presumably do something else with that monthly payment, like investing it somehow). Because when you trade a car in early, you get what the car is worth - whether that's based on a loan or a lease, right?