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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.

Did BMW really win the luxury car sales race?

As anyone who follows our monthly By The Numbers series already knows, the luxury car sales race in the United States was close all of last year as BMW, Lexus and Mercedes-Benz seesawed up and down for sales supremacy. At the end of the year, it was BMW on top of the standings with 346,023 total sales. Or was it? According to data released by Polk, comparing the actual number of vehicles registered between the three top luxury players in the US paints a slightly different picture. Polk's data suggests that only 335,259 BMWs were registered in 2015, compared to 340,392 Lexus models. Why the disparity? It's all a matter of timing. Actual end consumers buy new cars, in almost all cases, from a franchised dealer. BMW delivered 346,023 vehicles in 2015, but only 335,259 of them were registered by their new owners. Presumably, those 11,000 BMWs did (or will) end up registered in the driveways of consumers, but they hadn't before January 1, 2016. Lexus General Manager Jeff Bracken wrote in an email to Automotive News, "Luxury sales leadership as measured by vehicle registrations is important to Lexus as it represents actual consumers engaging directly with our dealers." Of course, it goes without saying that we'll be paying keen attention to the 2016 luxury car sales race as it unfolds. If it's anything like it was in 2015, it'll come down to the wire, and even then may not be entirely clear. Related Video: News Source: Automotive News - sub. req.Image Credit: Andrew Harrer/Bloomberg via Getty BMW Lexus Mercedes-Benz Car Buying Car Dealers Luxury luxury cars

Mercedes to add 10 new plug-ins by 2017

The range of plug-in hybrid models available from Mercedes-Benz is about to see a massive expansion thanks to the German luxury brand's announcement to add 10 of them in the lineup by 2017. At the same time the company is rebranding its PHEV range to carry the simple letter "e." For example, the C-Class model previously known as the C350 Plug-in Hybrid is now renamed he C350e. Some of the models in Mercedes' PHEV range are already known, like the aforementioned C350e, and the luxury brand is hinting at two more. The GLE is confirmed to be the brand's first plug-in crossover at some point after the non-coupe version debuts. The company also seems to suggest the Concept V-ision E might see production. Shown in Geneva, the van is based on the V-Class, which is related to upcoming Metris in the US. Mercedes' lineup of diesel and gasoline-fueled hybrids has helped the brand reduce its fleet emissions in Europe by over 40 percent in the last two model generations. Not all of these new PHEVs might make it to the US, though. Mercedes spokesperson Michael Minielly tells Autoblog the company's confirmed plug-ins are the 2016 S550e and C350e that launches this fall. "We have no further announcements regarding what else will be coming to the US market at this time," he said. The rest of the electrified lineup here includes the E400 Hybrid, plus the B-Class Electric Drive and Smart Fortwo Electric Drive EVs. Strategic hybrid initiative from Mercedes-Benz: Ten new plug-in hybrids by 2017 Stuttgart/San Francisco. Extra impetus for the Mercedes-Benz strategic hybrid initiative: In the run-up to 2017 the company is bringing out a total of ten plug-in hybrid models, i.e. one new model with high-tech hybrid drive every four months on average. Following the successful launch of the S 500 PLUG-IN HYBRID, this month will see the C 350 e, the second model to feature the progressive drive concept, find its way to dealerships. And what might happen next with the strategic hybrid initiative has just been demonstrated by the Concept V-ision e study at the Geneva Motor Show. Under the new Mercedes-Benz nomenclature, an "e" replaces the words PLUG-IN HYBRID. "Plug-in hybrids are a key technology on the road to the local emission-free future of the automobile," emphasises Prof Dr Thomas Weber, member of the Board of Management of Daimler AG and responsible for Group Research and Mercedes-Benz Cars Development.