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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.

2020 Subaru Outback and Cadillac XT6 drives | Autoblog Podcast #590

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Green Editor John Snyder and Associate Editor Joel Stocksdale. This episode is all about driving, on- and off-road, and in a variety of vehicles. In particular, the trio are talking about recent experiences in the 2020 Subaru Outback, 2020 Cadillac XT6, 2019 Mercedes-AMG C 63 S and 2020 Hyundai Palisade. At the end, they tackle an interesting and particularly tough "Spend My Money" question involving whether or not to put off purchasing a Jeep Wrangler in favor of a sensible daily driver. Autoblog Podcast #590 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 Driving the 2020 Subaru Outback Driving the 2020 Cadillac XT6 Driving the 2019 Mercedes-AMG C 63 S Sedan Driving the 2020 Hyundai Palisade Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:    

Cadillac explains origins of Lyriq EV name

We feel for Cadillac, a brand we're inclined to dub the Alex Rodriguez of the automotive world — so much obvious talent, its gifts warped by repeated questionable moves and an inability to conclusively close the deal on The Big Stage. And as with Rodriguez, the expectations are so high at the same time the disappointment is so entrenched that Cadillac gets no benefits of any doubts, the commentariat ruthless with criticism for anything less than an out-of-the-park home run. This latest news, like the Newton-meter torque-based naming scheme initiated earlier this year, likely won't help. GM Authority asked Cadillac about the origin of the Lyriq name for the coming battery-electric crossover. Global head of brand strategy Phil Dauchy explained three threads that went into the new moniker. In no particular order, one thread is that "Cadillac," according to Dauchy, gets more mentions in song lyrics than any other brand, including non-automotive brands. The Music Lyrics Database, while not exhaustive, supports the case: Cadillac has 31 pages of lyric mentions among bands from Rancid to Weird Al Yankovic, beating every other brand we could think of. So ... lyrics into Lyriq. The second thread is rolled up with Cadillac's move to proper names instead of alphanumerics for the sedan and crossover lines, all of those names to end in "iq," as well as the push into electric vehicles. Dauchy told GMA the nomenclature overhaul and the two-letter suffix "[signal] that Cadillac is bringing a different type of vehicle to market, one that works in concert with man, nature, and machine." He's bullish on swaying the public with the product, adding, "When you see [the Cadillac Celestiq], its size, presence and scale all connote the emotion associated with the name." The final thread that went into the Lyriq name the alliteration of brand and model names. As GMA phrased it, perhaps unsettlingly, "With Cadillac and the model name both ending in an 'ick' sound, these names roll off the tongue quite well." This brings up a question raised in a number of comments about the Lyriq, which asks whether the last syllable is pronounced "ick" or "eek." Until now, I've pronounced the coming crossover with an "eek" at the end. "Lyr-eek" strikes me as more luxurious, and "Celest-eek" sounds better to me than "Celest-ick," that latter model being the flagship EV that follows the Lyriq. Of course, it also makes me wonder if I've been pronouncing "Cadillac" correctly.