Earlier this month BMW launched a subscription pilot in Nashville, Tenn. with the hopes of not only understanding the consumer appetite for luxury OEM subscription services but also their behavior.
One of the questions BMW is hoping to answer through this pilot is, “What portion of the automotive customer is receptive to this option over traditional ownership?” Swati Licis, strategic projects manager at BMW Group Financial Services North America, told the Center for Auto Finance Excellence.
Other questions include, “what are the challenges in operating this model successfully?” and “Which vehicles appeal most to customers by demographic segments?” she said.
The subscription dubbed Access by BMW offers two tiers ranging from $2,000 – $3,700 per month and both include vehicle maintenance, insurance, and BMW Roadside Assistance. The higher tier will provide access to a more varied group of BMW vehicles.
Models include the BMW 4 Series coupe and convertible, BMW 5 Series range, and the BMW X5 xDrive40e iPerformance and the BMW M2. All the vehicles are new and BMW Financial Services will absorb the cost of the pilot and depreciation risk of the vehicles, although Licis declined to share the anticipated costs.
BMW AG and Daimler AG recently announced plans to merge their mobility units in order to maintain a competitive advantage in the landscape. Mercedes-Benz, a subsidiary of Daimler AG, is also launching a car subscription in the Nashville area, but this is entirely separate from Access by BMW, Licis said.
Source : AutoFinanceNews
