The New Luxury Bandwagon: Mercedes-Benz Launches Subscription Service
Mercedes-Benz has announced it will be testing a new vehicle subscription service for customers in the United States this summer. The practice is becoming increasingly popular with automakers, especially luxury brands. General Motors expanded it’s Book by Cadillac service late last year, Porsche has Passport, and Ford has its Canvas program. Even BMW offered a public aside during the 2018 Detroit Auto Show that expressed its intentions to test the subscription model for itself.
The recipe is simple. A customer pays a flat monthly rate and an automaker opens up access to its fleet. For Mercedes, what you can actually drive depends on how much you spend though. The brand says it’s system will be tiered, with higher-end vehicles being available at a more princely premium. If you want AMG models or access to the S-Class, you’ll have to pay more than someone who is happy bouncing between the GLA and CLA.
Like all subscription services, mileage is unlimited and insurance is included. Maintenance and roadside assistance are also included as part of the package. Mercedes also noted that a concierge staff will be on hand to ensure vehicle deliveries are “consistent with the details and preferences in the customer’s profile.” But all the details have yet to be worked out.
Presumably, the service will function similarly to Book by Cadillac — which allows customers to schedule appointments where someone can hand over a new car in person at a location of their choosing. Members of the program are also allowed to swap vehicles up to 18 times annually. However, Cadillac instituted a driving cap of 2,000 miles per month late last year.
Mercedes doesn’t currently have a limit placed upon the odometer but made no mention of how many times customers will be able to exchange models. There has also been no talk of money. Cadillac’s Book service starts at $1,500 per month and Porsche Passport uses a tiered system that maxes out at $3,000 per month. Depending on how Mercedes breaks up its fleet, its own leveled system could easily span the $1,700-$3,000 pricing gamut.
Details are set to emerge as the program launch date draws nearer. What we know for sure is that the company is calling its service the Mercedes-Benz Collection and it drops in June for the good people of Nashville, TN, and Philadelphia, PA. Interestingly, BMW also mentioned it would be launching its subscription program in Nashville this year. It looks like the two rivals will not only be able to test their new services on the public but also against each other.
[Image: Mercedes-Benz]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Because leasing a new "luxury" car every 36 months doesn't scream "I'm a brand snob that makes bad financial decisions" loud enough.
$18,000 a year for Johann's wares? $375/week, insurance or no...