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Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Is Lincoln MKC cutting into Cadillac SRX sales?

The two big American luxury brands of Cadillac and Lincoln are on surprisingly similar paths at the moment with both divisions hoping to redefine themselves and grow popularity. They're still early in the process with no clear winner yet, but things might actually be looking up for Lincoln's latest model, according to a monthly sales analysis from The Motley Fool. It seems, at least early on, that the new MKC crossover might be taking a bite out of the Cadillac SRX's growth.
The MKC launched just a few months ago and has been getting a big marketing push from a series of oft-mocked ads starring the smooth-talking Matthew McConaughey. The luxury CUV has been the popular, new kid on the block with growing sales since its introduction. While smaller than the SRX, the Lincoln starts at a lower price and offers better fuel economy.
Through June, the SRX performed well with sales up over 20 percent on average through June, according to The Motley Fool. However, July and August saw things plummet with year-over-year drops of 7 percent and 37 percent, respectively. It still far outsold the MKC in terms of actual units in a given month, but the Caddy's continued growth has appeared to stagnate.

8 fastest depreciating cars in America

Getting a new car is an amazing experience. The fresh new scent, the barely touched interior, the double digit miles on your odometer, and... the depreciation once it leaves the car dealers lot? Maybe not that last one. To save you from the hurt of a quickly depreciating new car, we collected 8 of the fastest depreciating cars in America. And here's a surprise, one of them is a Toyota. Learn more at Autoblog.com Cadillac Infiniti Jeep Kia Lincoln Toyota Autoblog Minute Videos Original Video jeep compass cadillac xts infiniti q50 camry q50