12-17-2021, 08:29 AM
The entire auto industry is looking at converting to a subscription model. There’s been some great write ups and interviews with senior executives. The business model that they’ve operated on is changing, so they’re looking at residual income streams, car sharing options, etc. Volvo has been doing limited lease deals that include all maintenance and even insurance, an all in one short term lease. Audi & BMW have been doing fleet lease options, allowing you to change out the vehicle based on your intended use, every month or so. Mercedes has subscriptions now for different performance and handling characteristics. Almost all the companies are looking at reducing their trim levels for each model. They’re save a fortune in manufacturing costs by building them all at higher levels, then having subscription models for all the features. Remote start, heated seats, extra horsepower, turning radius, AWD, all available on demand for a premium or at a lower cost with an annual subscription.
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