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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.

A BMW i3 will cost you $100,000 in Brazil

Brazil is a long way from the US, and the price of the BMW i3 in that South American country is even further away from what Americans pay for the same electric vehicle. But that hasn't stopped a few wealthy Brazilians from taking the plunge. The BMW i3 REx – i.e., the one with the gas-powered range-extender – is the first mass-produced vehicle of its kind to be imported to Brazil (there are a few Nissan Leaf vehicles in fleet use), and those intrepid buyers are forking over about $100,000 to own the vehicle, according to Just-Auto. The country's first 100 i3's were recently received in Sao Paolo, and about 30 of them have been sold. That pricetag is a wee bit higher than in the US, where the i3 starts under $42,000. BMW did open a $261-million factory in Brazil this year, but the i3 continues to be produced exclusively in Germany. It's not just fancy new plug-in cars and World Cup tickets that cost a lot in Brazil. The Volkswagen Golf, which retails for less than $18,000 in the States, costs about $23,000 in Brazil and the Economist ran a series of articles last year explaining how currency changes have resulted in the dollar-to-Brazilian real exchange rate surging in recent years.

Are you the BMW 4 Series Gran Coupe?

Thanks to Austrian website Autofilou (via Jalopnik), we now have our first look at what appears to be the upcoming BMW 4 Series Gran Coupe - the four-door version of the new 4 Series coupe, which itself is based on the 3 Series sedan. Makes total sense, right?
Nevertheless, in our First Drive of the 4 Series coupe, we found it to be a much more engaging experience than the 3 Series on which its based. And if this new 4GC follows in those footsteps, it could prove to be a better 3 Series sedan than, well, the 3 Series sedan.
Expect the 4 Series Gran Coupe to come in 428i and 435i flavors, with a 2.0-liter turbocharged inline-four in the base car and a 3.0-liter turbo-six in the higher-end model. Of course, BMW will likely bring a range-topping M4 Gran Coupe to market not long thereafter.