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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.

BMW heads for the waves with Path 22 concept bike

BMW has been reminding us in the grandest of style recently of the serious clout it has in the classic motorcycle field. Most important is the R NineT that it put into production, but it's also been giving us a steady stream of enticing concept bikes, like the Concept 90 retro racer and the more recent Concept 101 custom bagger. And now it's showcasing another. This time, BMW Motorrad has taken a page out of the scrambler playbook with the Concept Path 22. Based on the R NineT, this concept bike is designed for surfers in impressive 1950s style. It features a single-side swing arm rear suspension, a classic circular headlamp, reprofiled tank and seat, studded tires, an oversized front wheel, longer fork travel, and a raised exhaust. It also has a unique paint job by Ornamental Conifer, and a pair of surf boards designed by Dyer Brand and mounted to a collapsible bracket on the side. Meant to showcase just one possibility for customizing the R NineT, the concept bike is named (and numbered) after one of Europe's premier surfing spots. It is being unveiled – appropriately enough – at the Wheels & Waves Festival in Biarritz, France. BMW Concept Path 22 – The Expression of Freedom. Munich/Biarritz. From June 11th - 14th 2015, the Wheels & Waves Festival celebrates for the fourth time a unique meeting of custom bikes, surfing and art in Biarritz. The festival is a great event that provides a straightforward opportunity for people to get together in a unique atmosphere and express their lifestyle of freedom and individuality. In this special setting, BMW Motorrad presents the BMW interpretation of a scrambler for the first time: the BMW Concept Path 22. Expression of a Lifestyle. The first scramblers in the 1950s were modified road machines with deep-treaded tyres, somewhat increased spring travel and a raised exhaust for off-road riding. These features gave the bikes a characteristic appearance that came to symbolise an attitude. "A scrambler is the perfect match for Wheels & Waves. It's the epitome of a motorcycle beyond established standards and conventions. Performance specifications are not so much of interest - style and originality all the more so. Scramblers express passion and are as varied as their owners. The Concept Path 22 is our own interpretation based on the R nineT. The latter is the perfect basis for a scrambler conversion", explains Edgar Heinrich, Head of BMW Motorrad Design.

BMW i3 will come with unusual 'OwnersChoice' non-lease option

In case you were interested in driving a BMW i3 but were afraid of getting into a traditional lease, there's some good new for you. We think. BMW recently announced that it would offer something called "OwnersChoice" and "OwnersChoice with Flex" to make the elegant city EV an easier purchase. Or temporary purchase, anyway. Something called "OwnersChoice with Flex" is not listed on the federal government's consumer information page on vehicle financing and we couldn't get a better explanation out of BMW than the official announcement, but the gist appears to be that an i3 buyer can make a gigantic balloon payment at the end of the contract term in order to pay less in monthly costs along the way. The way Automotive News describes it, the typical balloon note chains the buyer to the car in such a way that, while you can get lower monthly payments, you're still on the hook for the amount of the financing even if you return the car. With OwnersChoice, if you give the i3 back after the contract is done (usually after three years), you're in the clear. With OwnersChoice with Flex, you need to pay up no matter if you keep the car or not, but you can take the $7,500 federal tax incentive and increase your balloon payment by - let's see here, what's the amount? ah, yes - up to $7,500, which would knock $208 (7,500 divided by 36) off your payment every month. BMW Group Financial Services (GFS) came up with this new lease/payment hybrid thing, and Fred Isele, BMW GFS vp of sales and marketing, says it lets owners get, "a comfortable payment for one of the highest technological and efficient premium electric vehicles available to date." BMW GROUP FINANCIAL SERVICES OFFERS 'OWNERSCHOICE WITH FLEX' FINANCING PRODUCT WITH PURCHASE OF NEW i3 -- PROVIDES END-OF-TERM OPTIONS SIMILAR TO LEASING, YET BENEFITS OF OWNERSHIP WOODCLIFF LAKE, NJ – February 25, 2014 – With the launch of the BMW i3, the brand's first premium electric vehicle, BMW Group Financial Services becomes one of the first in the industry to create a financial solution to ownership that provides eligible customers with the options to lower their monthly payment and return the vehicle at the end of their contract term. The financing product called 'OwnersChoice with Flex,' provides eligible BMW i3 customers the option to increase their final OwnerChoice balloon payment due at the end of their contract term by up to $7,500.