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Auto blog

Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

BMW won't bring front-drive 2 Series tourers to US

BMW may have rolled out a new front-drive 2 Series in overseas markets, but according to the latest from Automotive News, it won't be bringing it to the United States anytime soon. The model line consists of the 2 Series Active Tourer – the company's first front-drive model – and its extended counterpart, the 2 Series Gran Tourer, which was introduced just last week at the Geneva Motor Show. Though available with all-wheel drive, their front-drive underpinnings make them a radical departure for the Bavarian automaker, which has made a name for itself on rear-drive architecture. The development is not unlike the path which Mercedes has pursued with models like the A-Class hatchback, B-Class minivan, CLA four-door coupe and GLA crossover. BMW evidently thinks, however, that even in its longer Gran Tourer form, the 2 Series hatchback is still too small for the US market, where minivans have grown far beyond their miniature dimensions. The 2 Series name will continue to be offered on the rear-drive coupe and convertible that were spun off of the 1 Series and which are unrelated to the front-drive hatchback and minivan. The X1, however, is slated to switch to the front-drive platform shared with the company's Mini brand.

Next-gen BMW X3 caught in the cold

The BMW X3 might be getting a bit long in the tooth, but fans of the sporty CUV can rest easy knowing that Munich hasn't forgotten about it. The third-generation crossover was caught squeezing in some end-of-season winter testing by our trusty spy photographers. According to our spies, the 2017 X3, code-named G01, will be underpinned by a new modular platform that promises more space in the cabin and better visibility out. Beyond that, the next X3 will get a range of B-series engines; expect four- and six-cylinder options, as well as a plug-in-hybrid option (eventually). Our spies also report that BMW will finally offer some more performance-oriented options, starting with an X3 M40i and eventually expanding into a X3 M. Beyond the oily bits, it looks like the X3's looks are set to evolve, growing slightly compared to its predecessor. BMW's trippy camouflage, though, prevents a closer analysis of the next-gen CUV's styling. Check out our full gallery of spy shots to see what's coming for the X3.