Lincoln's Used-vehicle Subscription Pilot Isn't Going As Planned

lincolns used vehicle subscription pilot isnt going as planned

The service doesn’t receive as much press as the new-car subscription services offered by a growing list of premium automakers, but Lincoln’s pilot project did carry many of the same aspirations. It just didn’t carry new cars.

Launched in California earlier this year, Lincoln’s subscription service offers users a range of older, contemporary models — insured, with maintenance covered — for a monthly fee that, depending on where you live, could secure a decent one-bedroom rental apartment. Perhaps unsurprisingly, Ford’s luxury division says demand for the service isn’t exactly red hot.

Speaking to Automotive News, Lincoln’s director of marketing, sales and service, Robert Parker, said it’s a love-’em-and-leave-’em situation. Besides the overall lack of public interest, the automaker discovered those who do sign up back out after a month or two.

“I’ve been surprised how few people are genuinely interested in that type of ownership,” Parker said. “If you had asked me a year ago, I would have said this is the next big thing. A lot of people are struggling to make the math work.”

Lincoln offers the service via the Ford-owned Canvas app. It was believed that, by swapping in and out of a number of vehicles (MKC, MKZ, MKX, Continental), subscribers might become interested in purchasing a new Lincoln. At the very least, Lincoln would make decent coin off of the 2015-2017 vehicles it preferred not to send to auction. A subscription ranges from $500 to $950 a month.

If that sounds pricey, rival Cadillac’s “Book by Cadillac” subscription service charges a flat $1,800 monthly rate, though users (in New York, Los Angeles, and Dallas) gain access to new vehicles, including the top-flight CT6 and Escalade. The CTS-V, ATS-V, and XT5 round out the collection. Subscription services have garnered more than their fair share of detractors, including Edmunds analyst Ivan Drury, who called it a “rich person’s toy.”

Lincoln’s service ultimately attracted people whose car was in the shop, or were waiting to take delivery on a new vehicle. As such, for many the service was used in place of renting, rather than in place of leasing.

“The amount of people coming out after one or two months is very high,” Parker said. “It’s just kind of an interim process.”

What to do? Lincoln could bring the service closer to the dealership, Parker suggests, or perhaps tinker with vehicle availability. Despite the lacklustre demand, Lincoln doesn’t plan on dropping the service altogether — its potential usefulness in boosting exposure to the brand is too great, Parker said. It’s just a work in progress.

[Image: Lincoln Motor Company]

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  • DEVILLE88 DEVILLE88 on Sep 24, 2018

    Put suicide doors on it and it'll fly out the doors!

  • DeadWeight DeadWeight on Sep 24, 2018

    Another unbelievablly idiotic idea/plan by Ford/Lincoln. They are absolutely clueless. Used (let alone new) Lincolns have about as much prestige - at any price (let alone their delusional, artificially high-fixed prices) - as Kia, and less prestige than Subaru in 99.378% of the nation. As for the tard article posted on TTAC today about higher used vehicle pricing despite higher higher inventories, that analysis did not take into account product mix (e.g. pickup trucks and SUVs), it used average vs median pricing, and did not account for higher interest rates, generally, and the much higher prices credit-impaired buyers, in particular, are now paying for alternative financing methods/sources. The used vehicle market, in general, is in for a hard fall sooner rather than later.

  • Inside Looking Out Why EBFlex dominates this EV discussion? Just because he is a Ford expert?
  • Marky S. Very nice article and photos. I am a HUGE Edsel fan. I have always been fascinated with the "Charlie Brown of Cars." Allow me to make a minor correction to add here: the Pacer line was the second-from-bottom rung Edsel, not the entry-level trim. That would be the Edsel Ranger for 1958. It had the widest array of body styles. The Ranger 2-door sedan (with a "B-pillar", not a pillarless hardtop), was priced at $2,484. So, the Ranger and Pacer both used the smaller Ford body. The next two upscale Edsel's were based on the Mercury body, are were: Corsair, and, top-line Citation. Although the 1959 style is my fav. I would love a '58 Edsel Pacer 4-door hardtop sedan!
  • Lou_BC Stupid to kill the 6ft box in the crewcab. That's the most common Canyon/Colorado trim I see. That kills the utility of a small truck. The extended cab was a poor seller so that makes sense. GM should have kept the diesel. It's a decent engine that mates well with the 6 speed. Fuel economy is impressive.
  • Lou_BC High end EV's are selling well. Car companies are taking advantage of that fact. I see quite a few $100k pickups in my travels so why is that ok but $100k EV's are bad? The cynical side of me sees car companies tack on 8k premiums to EV's around the time we see governments up EV credits. Coincidence? No fooking way.
  • EBFlex "I'd add to that right now, demand is higher than supply, so basic business rules say to raise the price."Demand is very low. Supply is even lower. Saying that demand is outstripping supply without providing context is dishonest at best.
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