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        home > news > Automakers > Lexus Mulls Addition of Subscription Service

        Lexus Mulls Addition of Subscription Service

        Luxury brand follow lead of Volvo, Porsche and Cadillac.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        March 21, 2018
        Lexus is considering offering a subscription service much like that of Cadillac, Volvo or Porsche ... and soon Lincoln.

        Subscription services are still something of a novelty in the car business but more brands, including Lexus, are contemplating offering them in the not too distant future.

        “There’s nothing to announce,” said Michael Moore, Lexus senior manager of product marketing. “But it’s certainly something we’re looking at.”

        Subscribe Now!

        Moore noted Lexus is continuously reviewing its retail approach in effort to make it better ensure that it can exceed customer expectations.

        Lexus rivals such as Cadillac, Volvo and Porsche have all committed to subscription services during the past several months.

        (Lexus turns urban explorer with UX compact crossover. Click Here for the story.)

        Mercedes-Benz is also considering adding a subscription service to its marketing effort, according to a report in Automotive News. The German luxury carmaker is expected to have its subscription offer ready for the U.S. market relatively soon, the trade publication said.

        Subscription services are billed as a way to minimize the difficulties inherent in owning a vehicle by bundling all the maintenance costs, licensing fees and charges for insurance into one monthly payment.

        Animating the move to offer subscription services is the idea that at least some customers will also look forward to having a set price covering all their transportation expenses but for gasoline.

        (Click Here for details about Book by Cadillac.)

        Another feature of the subscriptions services as they emerge and reach the market is they offer customers the ability to swap out one vehicle for another.

        For example, the Volvo Care subscription offers access to a vehicle for 12 months to 24 months through a monthly fee. The program, one of the first in the industry, has already exceeded Volvo’s original expectations for sign ups and has succeeded in bringing in new customers to the Volvo brand, according to Volvo officials.

        “Book By Cadillac” offers consumers the opportunity to switch between different Cadillacs to best suit their specific needs that day. The vehicles are delivered via white-glove concierge to members’ requested locations and exchanged at their leisure or as their needs change.

        (Are you ready to “subscribe” rather than lease? To see the story, Click Here.)

        Lincoln Motor Co. is in the process of launching a pilot subscription service in California that allows subscribers to take out vehicles month-to-month, with insurance, maintenance, roadside assistance and pickup/delivery all provided as part of a monthly fee.

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