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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.

Driving the BMW M2 Competition, Honda Odyssey and Toyota RAV4 Prime | Autoblog Podcast #651

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by West Coast Editor James Riswick. This week, they talk about driving the BMW M2 Competition, Honda Odyssey and Toyota RAV4 Prime. Then they discuss James' experience testing the new Yakima CBX cargo carrier, Autoblog readers' preference for the GMC Hummer EV over the Tesla Cybertruck, and Mercedes-Benz taking a larger stake in Aston Martin. Lastly, they help James' father find a new car in the Spend My Money segment. Autoblog Podcast #651 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2020 BMW M2 Competition 2021 Honda Odyssey 2021 Toyota RAV4 Prime Testing the Yakima CBX Cargo Carrier on the Subaru Outback 75% of Autoblog Twitter follower prefer the GMC Hummer EV over the Tesla Cybertruck Mercedes-Benz to boost stake in Aston Martin to 20%, lend it some tech Spend JamesÂ’ fatherÂ’s money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:

The most or nothing: Mercedes-Maybach S650 Cabriolet pushes the luxury limits

After the introduction of the Mercedes-AMG GT Roadster at the Paris Motor Show this fall, we informed you that Mercedes-Benz has a convertible conundrum, a surplus of drop-tops that seemingly threatens to self-cannibalize within the brand's ever-proliferating lineup. Benz's head of design, Gorden Wagener, who spends much of his time in Southern California, argues it's not a problem: Each convertible, in its ideal construction, would intrinsically vanquish any issues. "The bad is the enemy of the good," he said, not exactly quoting Nietzsche. Now, the three-pointed star brand has upped the top-down ante, with the unveiling this week at the Los Angeles auto show of the Mercedes-Maybach S650 Cabriolet, a vehicle so opulent, it sits in price and position atop the uber-luxury brand's current top-of-the-line offering, the $247,900 Mercedes-AMG S65 Cabriolet. View 24 Photos "Mercedes-AMG is our performance brand so it's all about performance stuff," says Wagener in a one-on-one interview on the roof of a Beverly Hills mansion just before the new car is unveiled. "Of course, Maybach has power, too, but it's the ultimate in luxury. So it's more on that side. And for me in the interior, it's the haute couture of the automobile, so we tried to up that a little more with details. And on the exterior, it's a more superb appearance up front, more chrome, more rich, and of course we tried to up that branding even more. The S-Class is the best car in the world, we consider, I always thought we could raise the Mercedes brand. And it's the same with the S convertible." Why does Mercedes-Benz need a flagship atop its flagship? Because, when climbing the mountain of automotive luxury there is always the customer who, when he or she reaches the pinnacle, wants more. A car brand, especially one with deep pockets and luxurious heritage like Mercedes, can always further gild the automotive lilies, creating a step up for those for whom the brand's motto, The Best or Nothing, is a literal life credo. "It's always our job to make it better," Wagener says. "Each little detail, the wood, the wood under cover of the cabriolet, the leathers. All the super luxury details that make a luxury car into a super luxury car. The key is to make a modern luxury design and not a traditional luxury design. There is definitely a market for traditional luxury, but we always wanted to have Mercedes, Maybach in particular, as a modern luxury car.