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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.

2019 Lincoln Continental will cost as much as $5,000 more

Rumors have been swirling for months about the fate of the slow-selling Lincoln Continental amid Ford's larger plans to pare cars from its lineup in favor of trucks and SUVs. But now comes word of official order guides that show the 2019 Continental priced as much as $4,925 more than the previous year's model. That price bump brings more perks for buyers, however. According to CarsDirect, all models will get adaptive cruise control and the Lincoln Co-Pilot360 suite of safety technology, which includes automatic emergency braking, blind-spot information system and rearview camera. The base level Continental Premiere will start at $47,140, including destination fee, which is $985 more than the 2018 model. The Reserve model is where the starting price jumps $4,925 to $60,705. It adds technology like a 360-degree camera, heads-up display and park assist, plus heated rear seats and steering wheel and windshield wiper de-icer. The top-of-the-line Black Label edition starts at $71,040, an increase of $4,630, and adds 30-way adjustable seats. Those prices are considerably cheaper than comparably equipped competitors like the Audi A8 or BMW 7 Series, of course, but that value proposition hasn't so far managed to help the sedan's fortunes. Lincoln sold 12,012 models of the Continental in 2017, according to CarSalesBase.com. Sales through August were 5,677, which is more than 29 percent off the pace at this same point last year. Lincoln revived the storied Continental nameplate back in 2015 to much fanfare, but its market release in 2016 was a victim of bad timing, coming amid a rising tide of crossovers. Earlier this year Lincoln reportedly showed dealers photos of a Continental with rear-hinged suicide doors that it said it planned to manufacture, which may be an attempt to drum up interest. Jalopnik, citing unnamed sources familiar with Ford's product plans, says the Continental is likely to be killed off at the end of the run of the current model in 2020. That aligns with what a user on the Blue Oval Forums is saying, that shift changes at the Flat Rock Assembly plant near Detroit are coming and that workers have been told the Continental can be phased out of production by next summer. One supposed possibility is Ford moving production to China, though any plans to import sedans to the U.S. from there would seemingly be negated by the same Trump administration tariffs that killed plans to import the Ford Focus Active. Related Video:

Lincoln plans pilot subscription service for pre-owned vehicles

Lincoln's foray into the world of monthly subscriptions will follow the mold of Ford's Canvas program and launch a pilot service offering a range of pre-owned 2017 Lincoln vehicles in West Los Angeles and the San Francisco area. Lincoln first announced plans for a subscription service on the sidelines of the L.A. Auto Show. The luxury automaker says its new service will allow customers to have a vehicle "as if it were their own," with a monthly payment that covers a prescribed mileage package and includes comprehensive insurance, warranty, maintenance and roadside assistance. It'll be based on Ford's nearly year-old Canvas program, also offered in the Bay Area and West Los Angeles. It offers pre-owned Ford vehicles on a monthly subscription basis, including insurance, maintenance and warranty coverage. Terms for that program are one to 12 months, with an ability to swap cars at any time. While Lincoln didn't announced pricing or a start date for its own subscription program, Canvas' existing service starts at $400 a month, not including tax and depending on vehicle and other options, for pre-owned Ford vehicles. Ford in February said its Canvas fleet has more than 600 customers who've logged more than 3 million miles in the two markets. Lincoln joins a growing list of automakers including Volvo, Cadillac and Porsche who are offering monthly subscription services as an alternative to traditional ownership or leasing. The subscription service will also come with Lincoln's Pickup & Delivery program, in which a valet picks up a customer's vehicle for service at any location and provides them with a loaner Lincoln before returning their vehicle. Lincoln also reiterated its plans to expand its Lincoln Personal Driver service first piloted in San Diego and Miami to Dallas, saying it will soon be integrated into the Lincoln Way mobile app. The service, previously called Lincoln Chauffeur, allows customers to call on a screened personal driver who can also assist with errands while the customers attend to other matters. The luxury brand is emphasizing "warm, human and effortless" services as a way to differentiate itself from its competitors. For more information on Vehicle Subscription Services, check out the Complete Guide. Related Video: