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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.

2016 BMW 7 Series First Drive [w/video]

Flagships demonstrate strength. "This is what we can do," these cars say with emphasis. Since 1977, the 7 Series has been a rolling showcase of BMW's capability. Sure, BMW makes racecars, but the mighty 7 is a proud reminder that the Roundel also stands for luxury. Except the 7 Series has been eclipsed by the Mercedes-Benz S-Class, a technological tour de force that Mercedes haughtily calls the industry's flagship. BMW makes a pretty nice car, but no one would dare call it that. Bimmer should probably just lower the flag, right? Not yet. Most of history's famous flagships have been fighting machines. They exude confidence, but also pack a punch. And with the 2016 7 Series, BMW is unleashing a broadside on Mercedes and the rest of the industry. Rather than raw power, the sixth generation of the iconic 7 Series is loaded with sophisticated technology that makes the new sedan more luxurious and comfortable. While it looks familiar from the outside, most of the improvements are in the cabin or under the skin. Things like the carbon fiber used for the passenger cell that help the 7 Series shed 190 pounds compared to its predecessor. Or the touchless gesture control that allows you to accept or decline phone calls with simple hand motions. Even the infotainment system is better, with a pinch-to-zoom feature that makes iDrive less confusing and more like the user-friendly iPad. BMW is unleashing a broadside on Mercedes and the rest of the industry. It's a lot of high tech stuff, but the driving experience is still the top priority for BMW. To test its mettle, we traveled to the Monticello Motor Club in rural New York. After several hot laps on the road course (more on that later) we slip behind the wheel of an Arctic Gray Metallic 750i xDrive for some public road driving. The big sedan immediately masks its size on the twisting rural state routes. With 445 twin-turbo V8 horsepower urging us forward, we barrel ahead as the countryside blurs by. Once we settle into a relaxed, legal pace and get our bearings inside the car, we check out some of the new tech. The gesture control is easy to activate while driving, and with a twirl of a finger we turn up the silky-sounding Bowers & Wilkins system. Gestures actually work as advertised. No one calls us, but during an earlier demonstration we were able to decline a call with a dismissive backhand. It felt good.

BMW may keep next 1 Series out of the US

As BMW prepares to introduce the all-new 2 Series coupe and convertible, the 1 Series name definitely won't be going away. We know new sedan and hatchback models are in the works; including the GT shown above. According to Car and Driver, though, the future of the 1 Series nameplate in the US could be dependent on rival premium small cars like the Mercedes-Benz CLA-Class and Audi A3.
In an interview with C/D, BMW's North American head of product planning and strategy, Paul Ferraiolo, said that pricing might be the biggest deterrent to offering the third-gen 1 Series in the US. As he points out, BMW currently prices the 1 not too far from the 3 Series, but Mercedes-Benz and Audi will have their new small cars priced well below the $30,000 mark. BMW's Mini brand will also factor into the consideration since the 1 GT will share its underpinnings with the next-gen Cooper lineup.