Access by BMW (monthly subscription service)
04-05-18, 10:15 AM
#1
Access by BMW (monthly subscription service)
BMW has now officially launched its new vehicle subscription service and released pricing details, becoming the latest automaker to embrace the more flexible alternative to traditional leasing. It's called Access by BMW, and it'll offer a selection of vehicles in two tiers via a new mobile app or dedicated website.
The program launches as a pilot, and it's limited for now to Nashville, Tenn., and surrounding areas. But BMW says it could expand the program if it proves successful.
Under Access by BMW, members (as car buyers will presumably be known as these programs proliferate) can request a vehicle based on their needs via a mobile app available for both iOS and Android. Then, a BMW concierge will deliver a vehicle that most closely matches the member's needs to their location and at the desired time. It'll arrive freshly detailed, pre-set to your desired preferences and with the gas tank topped off. Members can swap vehicles as many times as they like within a given month, and they can also switch between the two pricing tiers.
Prices are $2,000 or $3,700 a month, depending on which tier you choose, and include taxes and fees, maintenance, full detail washes, a $1 million liability insurance policy with a $1,000 driver deductible, a 2,000-mile monthly cap and the company's roadside assistance service. The former rate gets you into the "Legend" tier, which offers access to vehicles ranging from the 4 Series coupe and convertible to the 530e iPerformance plug-in hybrid, the M2 and the X5 crossover. The "M" tier features more powerful, performance-focused models like the M4 convertible, the all-new M5 and the X5M and X6M SUVs.
There's also a $575 joining fee.
"As customers continue to explore the growing mobility market, service-related offerings are becoming more in demand," Ian Smith, CEO of BMW Financial Services USA, said in a release. "With Access by BMW, our members will enjoy the freedom of personal mobility with access across a broad range of our highly emotional vehicles."
With the pilot, BMW joins a growing list of automakers that are embracing subscription services as a hassle-free option for consumers. It compares with the likes of:
Mercedes-Benz, meanwhile, is planning to launch its own subscription service in the U.S. this year, and Lincoln is planning to launch a pilot in California using preowned 2017 models
The program launches as a pilot, and it's limited for now to Nashville, Tenn., and surrounding areas. But BMW says it could expand the program if it proves successful.
Under Access by BMW, members (as car buyers will presumably be known as these programs proliferate) can request a vehicle based on their needs via a mobile app available for both iOS and Android. Then, a BMW concierge will deliver a vehicle that most closely matches the member's needs to their location and at the desired time. It'll arrive freshly detailed, pre-set to your desired preferences and with the gas tank topped off. Members can swap vehicles as many times as they like within a given month, and they can also switch between the two pricing tiers.
Prices are $2,000 or $3,700 a month, depending on which tier you choose, and include taxes and fees, maintenance, full detail washes, a $1 million liability insurance policy with a $1,000 driver deductible, a 2,000-mile monthly cap and the company's roadside assistance service. The former rate gets you into the "Legend" tier, which offers access to vehicles ranging from the 4 Series coupe and convertible to the 530e iPerformance plug-in hybrid, the M2 and the X5 crossover. The "M" tier features more powerful, performance-focused models like the M4 convertible, the all-new M5 and the X5M and X6M SUVs.
There's also a $575 joining fee.
"As customers continue to explore the growing mobility market, service-related offerings are becoming more in demand," Ian Smith, CEO of BMW Financial Services USA, said in a release. "With Access by BMW, our members will enjoy the freedom of personal mobility with access across a broad range of our highly emotional vehicles."
With the pilot, BMW joins a growing list of automakers that are embracing subscription services as a hassle-free option for consumers. It compares with the likes of:
- Cadillac's Book service, which charges $1,500 a month, plus a $500 initiation fee, to use 18 vehicles in 12 months with unlimited miles.
- Porsche's Passport service, which charges a $500 activation fee and a $2,000 or $3,000 monthly tab, depending on how many vehicles you want to drive.
- Care By Volvo service, available nationwide, starts at $600 a month for the 2019 Volvo XC40 crossover, plus a $500 deposit, and includes maintenance (including oil changes) and wear coverage, 24-hour concierge service, roadside assistance, and insurance. It's limited to the XC40, but you can swap into a newer model after 12 months.
Mercedes-Benz, meanwhile, is planning to launch its own subscription service in the U.S. this year, and Lincoln is planning to launch a pilot in California using preowned 2017 models
04-05-18, 12:40 PM
#2
it would have been a more interesting program if they set the price more reasonably. 2000 for regular BMW and 3700 for high end models is a very steep price to pay. yes, insurance is included and you get 2000 miles a month, but the deductible is still quite high and who really drives that much a month? imagine 3700 lease payment to lease a m5, that's almost double the price of leasing a m5 on a traditional 3 year lease
04-05-18, 03:05 PM
#4
From an article in a local business paper about the program a week or so ago: "Automakers are searching for ways to reach younger consumers whose shopping and transportation habits have been shaped by Silicon Valley giants like Uber Technologies Inc. and Airbnb Inc."
Since I am in the Nashville area, if you guys want to provide the financial backing for a year's enrollment, I will volunteer to be a guinea pig and enroll in the program and commit to provide at least two periodic reports during the year to evaluate its operations.
Since I am in the Nashville area, if you guys want to provide the financial backing for a year's enrollment, I will volunteer to be a guinea pig and enroll in the program and commit to provide at least two periodic reports during the year to evaluate its operations.
04-05-18, 03:07 PM
#5
Lexus Test Driver
Oh snap. They finally announced the price? Or maybe I didn't see it the first time I read the story....
A 2K-3.7K subscription fee per month is ridiculous. You can lease a M5 or Porsche for MUCH cheaper with that kind of money. Overall - I say its not worth it.
I don't think the paper is accurate at all. I live in the SF Bay Area. The rent here reaches about 2-4K on average for a studio to a 1 bed-room apartment excluding parking garage. (Parking sometimes available for places within 2.5-4K rent - maybe.) I don't think tech sector employees would do this program as they already pay insane amounts of money for rent. SF Bay Area rent + this service would cost 4K-7K per month in total. On top of that - big tech companies offer shuttle bus services that drive them throughout the whole Bay Area.
These sub-based car programs is most likely targeting the wealthier group of people who doesn't want a commitment of owning a car or taking care of it.
A 2K-3.7K subscription fee per month is ridiculous. You can lease a M5 or Porsche for MUCH cheaper with that kind of money. Overall - I say its not worth it.
These sub-based car programs is most likely targeting the wealthier group of people who doesn't want a commitment of owning a car or taking care of it.
Last edited by BippuLexus; 04-05-18 at 03:12 PM.
04-05-18, 04:14 PM
#6
I don’t see this subscription service really appealing to a large market. It’s way too expensive for a young rich car buyer and the extremely wealthy buy their cars cash anyways. In 2 years time you could own an M3 outright including insurance.
04-05-18, 04:30 PM
#7
Lexus Test Driver
I think its more of a niche offering more than anything - probably targeting the wealthier folks who don't want to own a car or take care of one.
Trending Topics
04-05-18, 04:36 PM
#8
guys this was always an value added service for them, which means more expensive... otherwise why would they bother for it?
Only way for this to make sense is some up and coming chinese manufacturer offering subscription deals to sell their EVs while state sponsors the money.
Traditional manufacturers will want to make extra money if they offer more services, not make less money.
Only way for this to make sense is some up and coming chinese manufacturer offering subscription deals to sell their EVs while state sponsors the money.
Traditional manufacturers will want to make extra money if they offer more services, not make less money.
04-05-18, 05:01 PM
#9
Lexus Fanatic
it would have been a more interesting program if they set the price more reasonably. 2000 for regular BMW and 3700 for high end models is a very steep price to pay. yes, insurance is included and you get 2000 miles a month, but the deductible is still quite high and who really drives that much a month? imagine 3700 lease payment to lease a m5, that's almost double the price of leasing a m5 on a traditional 3 year lease
Of course, high-risk drivers come from many sources and backgrounds, so I'm not going to imply that BMW itself is the cause.
Last edited by mmarshall; 04-05-18 at 06:00 PM.
04-05-18, 05:26 PM
#10
Lexus Champion
You'd have to ask them for verification, but I suspect one reason for the high price of the program is that BMW knows that they are going to have a fair number of aggressive or high-risk drivers in the program that are likely to damage the vehicles or otherwise cost them in insurance......and that has to be taken into consideration if they are going to provide the insurance with this program. They are (likely) going to be dealing with people who have speeding tickets, DUIs/DWIs, red-light violations, etc.....and/or a previous-accident record.
04-05-18, 05:39 PM
#11
Lexus Fanatic
04-05-18, 05:46 PM
#12
Lexus Fanatic
I'm sure you're one of the better BMW drivers..... as are probably most of those on Car Chat. It's probably not drivers like you that force up insurance rates. Besides, one also needs to take into consideration that not all of those drivers entering this BMW program are coming in from previous BMW ownership....some could be coming in from other brands.
Last edited by mmarshall; 04-05-18 at 05:55 PM.
04-05-18, 05:58 PM
#13
The pursuit of F
I agree with this in principle but the price of admission is still well above the cost of a lease, maintenance, and insurance even with the highest priced car in the group. A "value added" price markup for me would be +- 25% on top of that.
Ex: X5 or 530e = ($1000 + $100 + $100) *1.25 = $1500
Asking price of $2000 is a 67% ($800!) increase which to me personally is not worth it for the ability to swap to equal or lesser cars.
I like Volvo's pricing direction of $600 even if it is only for the XC40 and you're locked in for 12 months. Markup is not exaggerated.
04-05-18, 06:03 PM
#14
Lexus Fanatic
I agree with this in principle but the price of admission is still well above the cost of a lease, maintenance, and insurance even with the highest priced car in the group. A "value added" price markup for me would be +- 25% on top of that.
Ex: X5 or 530e = ($1000 + $100 + $100) *1.25 = $1500
Asking price of $2000 is a 67% ($800!) increase which to me personally is not worth it for the ability to swap to equal or lesser cars.
I like Volvo's pricing direction of $600 even if it is only for the XC40 and you're locked in for 12 months. Markup is not exaggerated.
Ex: X5 or 530e = ($1000 + $100 + $100) *1.25 = $1500
Asking price of $2000 is a 67% ($800!) increase which to me personally is not worth it for the ability to swap to equal or lesser cars.
I like Volvo's pricing direction of $600 even if it is only for the XC40 and you're locked in for 12 months. Markup is not exaggerated.
Since you now own a Stinger, if Kia had a similar program covering that vehicle, would you have gone for it? Or would have it been too expensive for you in the ling run?
04-05-18, 06:08 PM
#15
Lexus Champion
It's a nice ripoff from BMW. Anybody who has money, credit and business saavy knows you never do this with this type of car and pay the sucker prices. It almost sounds like this is a program for someone who wants to keep switching cars all month long or has massive amounts of income coming in every month. Not a smart deal at all.