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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.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

2025 Lincoln Navigator revealed with dramatic look, massive screen in Monterey

Say a big hello to the 2025 Lincoln Navigator, now more grand-looking and chock full of tech than ever before. This marks the fifth generation of Lincoln’s three-row luxury SUV, and while its bones are largely carryover, its appearance and interior experience are totally fresh. As for those hard points, the Navigator is still rolling with a body-on-frame construction, independent rear suspension and the 3.5-liter twin-turbocharged V6 paired with the 10-speed automatic transmission and all-wheel drive standard. Said engine produces 440 horsepower and 510 pound-feet of torque, the same output as the 2024 model. Both the standard length and the L model return, with the latter pictured in white just below. While this Navigator may end up driving much the same as the current one, it sure does look largely new from the outside. A fresh grille design gives it a mighty loud and proud aesthetic from the front and is complemented by a big light bar for even more visual presence. Like other new Lincolns, this one features the “Lincoln Embrace” for approach that plays an animation via the lights to welcome your return to the car. The full-width taillights do the same with new light-up “3D” badging. Chrome is thrown out the window in favor of satin aluminum trim accents (a Jet Black Appearance package will apply glossy black trim instead), and just like the refreshed Escalade, 24-inch wheels are newly added to the party – 22-inch wheels are the new standard. One particularly new big-deal feature youÂ’ll notice on the exterior is the “Lincoln Split Gate” that is essentially a split tailgate the likes of which you find on BMWs and Range Rovers. Similar to others, the tailgate is split so three-quarters of the gate opens up, while the remainder folds down. It allows for easier loading and unloading, but can also be used as a seat (600-pound capacity) when parked. Lincoln even offers a “Cargo Tailgate Manager” option that can function as a seatback for the tailgate, a table for tailgating events or to split the cargo area into a multi-level storage shape. Things really start to look totally new when you hop into the front seats and take in the new 48-inch panoramic display that spans the whole width of the dash. YouÂ’ll recognize the Lincoln Digital Experience setup from the 2024 Nautilus where it debuted, and it operates in a similar manner here.