Car subscription makes sense
Thread Starter
Lexus Test Driver
Joined: Sep 2016
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From: PA
Car subscription makes sense
Again, we've all noticed that in general, the younger generation (I would say born in the mid 90's and later) are not car crazy and don't feel the need to blow a lot of money on a car. Contrary I think to many of us, we wanted to have a nice car as soon as we were financially able.
I could envision this being successful, while the traditional sales eventually going away. Terms and pricing imho would likely evolve. And it's a timing thing, when you have a job where you can spend $3/mo. for this subscription, you're likely to be working 12-15 hours a day, which is good for those providing the cars....
http://www.freemalaysiatoday.com/cat...cription-plan/
I could envision this being successful, while the traditional sales eventually going away. Terms and pricing imho would likely evolve. And it's a timing thing, when you have a job where you can spend $3/mo. for this subscription, you're likely to be working 12-15 hours a day, which is good for those providing the cars....
http://www.freemalaysiatoday.com/cat...cription-plan/
Thread Starter
Lexus Test Driver
Joined: Sep 2016
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From: PA
I think with monthlies, there will always be fluff, some inefficient amount that the subscriber is willing to let go. Look at amazon prime in their conquest, $10.99/mo. just went to $12.99/mo. There will likely be many who accept it, it's only $2, it's not 18%.
Since these are Porsches, the majority of people in life will never reach a position where they can obtain one (a colleague told me he went to check out the lease on a base 991.2, and it was pretty nuts--most people can lease when they cannot buy). But you're 22-30 y.o. and got your first job paying $160k, you have choices. Once again, that's not the majority, that's the cream of the crop.
Nobody says, I may never be able to own a Toyota in my lifetime, so today, imho subscription would be a tougher sell. But as more and more people believe that they must not pay for what they don't use ( a car sitting idle 22 hours/day), it would likely also work with Toyotas. People drive hybrids, there is no break-even for them, yet they do....I think they will look at subscriptions the same way. I feel good not paying for something that is not used 22 hrs/day, and I can afford the monthly....
Since these are Porsches, the majority of people in life will never reach a position where they can obtain one (a colleague told me he went to check out the lease on a base 991.2, and it was pretty nuts--most people can lease when they cannot buy). But you're 22-30 y.o. and got your first job paying $160k, you have choices. Once again, that's not the majority, that's the cream of the crop.
Nobody says, I may never be able to own a Toyota in my lifetime, so today, imho subscription would be a tougher sell. But as more and more people believe that they must not pay for what they don't use ( a car sitting idle 22 hours/day), it would likely also work with Toyotas. People drive hybrids, there is no break-even for them, yet they do....I think they will look at subscriptions the same way. I feel good not paying for something that is not used 22 hrs/day, and I can afford the monthly....
CL Community Team
Joined: Feb 2007
Posts: 9,416
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From: IL
But as more and more people believe that they must not pay for what they don't use ( a car sitting idle 22 hours/day), it would likely also work with Toyotas. People drive hybrids, there is no break-even for them, yet they do....I think they will look at subscriptions the same way. I feel good not paying for something that is not used 22 hrs/day, and I can afford the monthly....
Lead Lap
Joined: Apr 2002
Posts: 4,892
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From: Virginia
I don't believe that either the Cadillac Book program or the Porsche Passport program are meant to be true, long term subscription programs. As those monthly dues are somewhat unsustainable by most. But it does provide consumers a way to potentially consider the brand for the first time, as seems to be the case, bringing in younger and new to the brand shoppers. My guess is that after a few months, they hope to lure the customer to jumping to a full lease/purchase of a specific model.
Thread Starter
Lexus Test Driver
Joined: Sep 2016
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From: PA
This logic is faulty. You're paying for it no matter what. $3000/mo is the payment on the purchase of a well-equipped 911 GT3, which is a way more expensive car than anything included in this program. Yes you do get the flexibility of periodically changing models, but the fact is, it's significantly cheaper on a monthly basis to purchase any car in the passport program than it is to pay the subscription. And you have something of value when you're done. And you can buy one even if you don't live in Atlanta.
Assuming 36 mos, a GT3 might run as low as $4,400/mo. Nobody is going to do that. Many will lease, some will pay cash.
Subscribing is not about saving money, it's about a monthly payment. No different than Amazon Prime being sold at $10.99/mo., cancel anytime. Now it's $12.99/mo., they've got you. Unless you feel like $99/yr.
imho the subscription plays to the no "I'm not sure what I want and I'm not paying for something I can't use"
As for me, I wasn't born 1990 or later, and so unless I can come up with 50% down, and swing the 36 mo. payment, like I did when I was 19, there is no Porsche in my future.
GT3, are you kidding me? I took the 991 GTS 4 laps around the track following an instructor in a Cayman GTS, GT3 has to be incredible
CL Community Team
Joined: Feb 2007
Posts: 9,416
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From: IL
When I say it makes sense, I am saying I think the marketing does and it will be successful. The product is likely not good for me, or you.
Assuming 36 mos, a GT3 might run as low as $4,400/mo. Nobody is going to do that. Many will lease, some will pay cash.
Subscribing is not about saving money, it's about a monthly payment.
Assuming 36 mos, a GT3 might run as low as $4,400/mo. Nobody is going to do that. Many will lease, some will pay cash.
Subscribing is not about saving money, it's about a monthly payment.
All are monthly payments. One is just dramatically larger (all factors considered) than the alternatives.
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Lexus Fanatic
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Subscription at $12.99 is afterthought, but at 3k it is something else.
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Intermediate
Joined: Dec 2011
Posts: 281
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From: CA
When making comparisons, keep in mind that the Porsche Subscription price includes everything but gas. It covers the car, license & taxes, maintenance, insurance, roadside assistance and detailing and the car is delivered to your door. No limit on milage. That's gotta be $300-$400 month just for that stuff. Also, when you buy a new car, you take a large depreciation hit just to drive it off the lot. A Cayman S or Boxster S for $2K/mo for everything but gas does not sound that far off from a lease.
Pole Position
Joined: Mar 2014
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From: fl
Personally, I'm more of a fan of what Tesla painted a picture of about a year ago when they reach autonomous status... which is their version of using autonomous Teslas to compete against the Ubers and Lyfts of the world. While you sit in your office, or anytime your car is unused for blocks of time, your car drives itself to go pick up passengers who pay for the car to take them to destinations (think iTunes of profit sharing between you and Tesla). A $1k/month payment on a Model S can be dropped by whatever % you want depending on how often you let your car wander around collecting fees from riders. No gas cost, minimal maintenance cost. Just lowering your monthly out of pocket expense. And the car drives itself to automatic charging stations (demonstrated in a video). A few years ago we'd say this sounds like science fiction, but it's really not far-fetched in today's world. Singularity is near.
I'd take that over a subscription service.
I'd take that over a subscription service.
CL Community Team
Joined: Feb 2007
Posts: 9,416
Likes: 632
From: IL
When making comparisons, keep in mind that the Porsche Subscription price includes everything but gas. It covers the car, license & taxes, maintenance, insurance, roadside assistance and detailing and the car is delivered to your door. No limit on milage. That's gotta be $300-$400 month just for that stuff. Also, when you buy a new car, you take a large depreciation hit just to drive it off the lot. A Cayman S or Boxster S for $2K/mo for everything but gas does not sound that far off from a lease.
Intermediate
Joined: Dec 2011
Posts: 281
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From: CA
There are no lease promotions for the Cayman/Boxter S currently listed on their site. The Non-S Boxter is $649/mo, and a 911 Carerra is $1199. So presumably a Boxter S would wind up somewhere in between. The S costs 21% more to buy than the base, so let's call it $800 (23% more) just for grins. Add your $300, which seems a reasonable estimate to me, and you're at $1100. You could almost lease a Boxter S AND a Cayman S for the same $2k as the subscription. Or you could lease a 911 for $500 less than the subscription.
Lexus Champion
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From: FL
Lexus Fanatic
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From: ON/NY
Lexus Champion
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From: Canada
Here is an excerpt from the Wall Street Journal article. It looks like the reason for the cancellation is back-end technology (anybody know what this is?) that is too expensive.
Source: WSJ
I was thinking that perhaps the reason for the overly-expensive cost was the tremendously high number of changes per year (18 swaps per year -- you could change cars more than once a month!).
Source: Autoblog
The Book by Cadillac service—available in Los Angeles, Dallas and New York—will shut down operations by the end of this year, according to people briefed on the plan. Subscribers paying $1,800 a month for access to Cadillac’s model lineup will have 30 days from the time they are notified to turn their vehicles in, these people said.
The subscription plan, launched early last year, lets members swap in and out of different Cadillac models for the monthly fee, providing an alternative for customers who might not want to make the long-term commitment of buying or leasing a car.
A GM spokesman confirmed the service was ending but said it could restart later. “We are hitting the pause button for a brief time to make some tweaks to Book [by Cadillac] based on our learnings,” the spokesman said.
A letter prepared this week for subscribers in New York said Book by Cadillac would close its program in that city Dec. 1 and included an offer to purchase or lease a new Cadillac, a person who reviewed the letter said.
Some aspects of Cadillac’s program proved more costly than expected, people familiar with the program said. 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, these people said.
The subscription plan, launched early last year, lets members swap in and out of different Cadillac models for the monthly fee, providing an alternative for customers who might not want to make the long-term commitment of buying or leasing a car.
A GM spokesman confirmed the service was ending but said it could restart later. “We are hitting the pause button for a brief time to make some tweaks to Book [by Cadillac] based on our learnings,” the spokesman said.
A letter prepared this week for subscribers in New York said Book by Cadillac would close its program in that city Dec. 1 and included an offer to purchase or lease a new Cadillac, a person who reviewed the letter said.
Some aspects of Cadillac’s program proved more costly than expected, people familiar with the program said. 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, these people said.
I was thinking that perhaps the reason for the overly-expensive cost was the tremendously high number of changes per year (18 swaps per year -- you could change cars more than once a month!).
The service was available in New York City, Dallas and Los Angeles. Subscribers could choose between five different Cadillacs: ATS-V, CTS-V, CT6, XT5 and Escalade. You'd be allowed up to 2,000 miles per month and 18 vehicle swaps per year through the concierge service. Cadillac would bring the car of your choice to you and take the old car away at your whimsy. The price included registration, taxes, insurance and maintenance costs. No long term commitment was necessary to sign up.