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What are initial thoughts on “Subscription” services?

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Old Apr 8, 2018 | 02:46 PM
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What are initial thoughts on “Subscription” services?

The word is out that MB will be following BMW & I believe Audi, with a “subscription” type service, starting first in Europe and then, supposedly, headed to selected markets in the USA. From what I have heard, the customer, or “subscriber” pays a monthly fee and can then use one model or several different models during the subscription period. For me, I like the idea, if one could subscribe for a very short length of time, say two to four weeks. What a great way to sample various models before you buy or lease. How about the idea of being able to take a vacation on the other side of the country—or the other side of the world—and be able to pick up a nice MB for a week or two, instead of dealing with rental car companies. For me, however, I can’t imagine not having MY cars in MY garage, with only ME driving them. I’m also wondering about the availability of higher end models, like S, SL & AMG models. Wouldn’t that be a hoot!

Actually, I know almost nothing about this new service, as I’m sure most here do not at this early stage, so I thought Id start this thread where we can learn about it as it comes to market. Sounds interesting, but we’ll have to see.
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Old Apr 9, 2018 | 12:12 AM
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Time is the most valuable, finite resource for any non-slave, no matter how nominally wealthy
Travel&rentals tend to be for slaves who live life brain-dead&killing time
As a car/driving fanatic, part of why I despise travel (even if via own G650ER w/superb pilots) as stuff of (nominally wealthy) slaves who live in some undesirable part of globe, is inability to drive own bespoke-spec new (not used ) 65 (or at worst 991TTS Coupe) on safe, desirable rds, nr one's own newer, bespoke-spec house, not a used and/or older hotel/house
Get bored after ~3hrs of interesting drives in coastal CA mtns in early wkend AMs...and eager to return to my office at home to think/work
If lived in BevHills, wouldn't waste time traveling to SF for anything (certainly not food/driving), let alone cesspools like NYC or Miami or Paris/Stuttgart, etc
If lived in SF, wouldn't waste my time traveling to BH for anything (certainly not food/driving)
Basically, anything of value/entertainment on planet tends to travel to where those w/money&taste want to be....and where else on planet would anyone smart w/vast $ choose to reside/work/play except BH, or SF as a distant second?

Let's not forget $0 down, 2yr leases on 65s or 991TTS, etc are incredibly cheap vs TCO per unit of perf/safety: all stuff daily-useable w/no back-ups, winter tires, etc etc for those who live in places like BH or SF....and, even back in mid-80s to '90s, smartest kids on planet moved to the >>$1MM/yr world by age 25 in finance biz in BH or SF.....we have lived in a golden era in many ways for past 30yrs, esp in CA for wealthy, workaholic car nuts
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Old Apr 9, 2018 | 06:29 AM
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Ha! That's pretty funny. Nice to see someone take some time for a well written parody.
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Old Apr 9, 2018 | 07:24 AM
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Seriously though, I can see limited utility for me. I prefer to own, so it would be nice to 'trade up' to some higher level cars occasionally. But if that is what most people want to do, what would be the premium MB would charge to have high end S-classes, AMGs, etc. available in quantity for short term use? At least at the higher end of their automobile structure, it just seems like it would get really pricey.
OTOH, if this were incentive to move people from C-Classes to E-Classes, it might be more affordable by car, but you'd need a ton of them.
It is a very creative idea though.
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Old Apr 9, 2018 | 12:32 PM
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Actually many years ago about 10 or so, MB Vancouver offered something similar for a charity auction which a family friend won where you could swap in stock MB vehicles every 4 months for 12 months. I think it was a low amount like 15 or 25k for the winning bid
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Old Apr 9, 2018 | 03:00 PM
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I see where it would be interesting...
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Old Apr 10, 2018 | 02:15 AM
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I like the concept. The issue comes down to cost. BMW is planning/doing the same thing and their price is outrageous. For M cars it is $3700 a month. It includes insurance and concierge services but BMW has no car in their lineup worth much more than half that.
Porsche is $2000 for lower-end models and $3000 for higher-end ones, still excluding the fun toys.
If MB sets the price right without model restrictions they will have a winner. If they go the BMW route it’ll be a dud.
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Old Apr 10, 2018 | 05:38 AM
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Originally Posted by Wolfman
I like the concept. The issue comes down to cost. BMW is planning/doing the same thing and their price is outrageous. For M cars it is $3700 a month. It includes insurance and concierge services but BMW has no car in their lineup worth much more than half that.
Porsche is $2000 for lower-end models and $3000 for higher-end ones, still excluding the fun toys.
If MB sets the price right without model restrictions they will have a winner. If they go the BMW route it’ll be a dud.
If I were designing a subscription program, I'd do it around a "point system" rather than having just 2 tiers, as you've described in the Porsche program. So, pay let's say $20,000 for your first 20,000 "points". Each car that's available under the program costs a certain number of points to use per month or week or whatever time increment the company sets. So a 2018 AMG GT C costs more points than a 2018 S450 which costs more points than a 2015 C300. A point system allows for infinite number of monthly "prices", which can be based not just on MSRP but also the age of the car, and supply and demand for a particular model. Customers might get discounts based on how much they are willing to commit to upfront, so for instance committing to using 40,000 points might be cheaper per point than committing to 10,000.

In general, one drawback I see of these programs -- assuming all of them include insurance -- is that if a driver's safety record isn't taken into account in the pricing, then safe drivers basically end up subsidizing unsafe drivers. A point system might also allow the flexibility to charge point surcharges/discounts based on a customer's driving/accident/experience history.
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Old Apr 11, 2018 | 08:40 AM
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Sorry for the long post. Cadillac has a program called book by Cadillac. It’s 1500 a month and they have 2017/2018 models which are all platinum trim except a cts-ats v series. I did use this program for about 3 months to test out the Escalade before I bought one. ( didn’t buy one because at the end of 3 months the truck wasn’t holding up great ). Insurance and maintenance was included in that price and they come to your home or office and do a swap. You could change every 30 days or extend the car. You went onto there app and chose the car you want if it’s available . I thought it was a cool program, and if your someone who leases it might be very well worth it. However , I don’t lease because of the residual on AMGS and I like to have money down for the next vehicle and owenership. I do think it’s a good program and if Mercedes can do it right it can be great. I do think they should have a tiered program for someone who might want an AMG model or if someone wants an s450 or c300. One solid price for Benz wouldn’t work well
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Old Apr 11, 2018 | 10:34 AM
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Originally Posted by Delta5275
Sorry for the long post. Cadillac has a program called book by Cadillac. It’s 1500 a month and they have 2017/2018 models which are all platinum trim except a cts-ats v series. I did use this program for about 3 months to test out the Escalade before I bought one. ( didn’t buy one because at the end of 3 months the truck wasn’t holding up great ). Insurance and maintenance was included in that price and they come to your home or office and do a swap. You could change every 30 days or extend the car. You went onto there app and chose the car you want if it’s available . I thought it was a cool program, and if your someone who leases it might be very well worth it. However , I don’t lease because of the residual on AMGS and I like to have money down for the next vehicle and owenership. I do think it’s a good program and if Mercedes can do it right it can be great. I do think they should have a tiered program for someone who might want an AMG model or if someone wants an s450 or c300. One solid price for Benz wouldn’t work well
Just curious: was there a mileage cap that you could drive and were you allowed to take the vehicle out of state?
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Old Apr 11, 2018 | 04:57 PM
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Originally Posted by Streamliner


Just curious: was there a mileage cap that you could drive and were you allowed to take the vehicle out of state?
All 50 states and no millage cap at all. There plan or at least they want to do this at some point is drive the car to the JFK and pick another one up at LAX. They even give you an ezpass and just bill your CC on file
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Old Apr 11, 2018 | 09:32 PM
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Originally Posted by Delta5275
All 50 states and no millage cap at all. There plan or at least they want to do this at some point is drive the car to the JFK and pick another one up at LAX. They even give you an ezpass and just bill your CC on file
I would just LOVE it if MB did similar. I have always wanted to fly to the east coast and then do a month long driving tour, from Maine to Florida, but I have not wanted to do it in a Hertz something or other. Would love to pick up a new S Class and do it!
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