Lexus Launching Subscription Service in Select Cities

Lexus = Smartphone?

Volvo shocked the world last year when they announced their plans to offer an all-encompassing lease option. Dubbed Care by Volvo, the 24-month subscription plan offered customers a vehicle, insurance, and service and maintenance for one flat price. Now, Lexus is preparing to roll out a similar subscription service, dubbed Lexus Complete Lease.

Limitations

And like Volvo, Lexus is rolling out this exciting new program with a few limitations, at least for now. The subscription service, which launches in the first quarter of 2019, only applies to the new UX crossover. And it's only available to residents of Chicago, Miami, Boston, and Los Angeles.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

Trial Run

Call it a trial run of sorts. And it makes perfect sense. Lexus admits that they are doing this intentionally to learn what customers like or dislike about the program. That feedback will be used to make adjustments to Lexus Complete Lease before the automaker expands it to additional markets and eventually nationwide.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

Starting Small

"We talked about starting it nationwide but we wanted to get a sense of how this would play out," explained Cynthia Tenhouse, Lexus’ general manager of product and consumer marketing. "Our plan is to test it [in urban areas], and if we’re successful we will look at rolling it out nationally."

>>Join the conversation about the Lexus subscription program right here in Club Lexus. 

All-Inclusive

The idea, of course, is to offer customers a hassle-free and convenient path to car ownership. Instead of going to the trouble of negotiating and then pricing out and paying for all associated costs individually, this is an all-inclusive package.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

Just Pay for Gas

Lexus Complete Lease payments include the cost of leasing the car, maintenance (including tires and other wear and tear items), insurance, and even add-ons like satellite radio. Essentially, all owners need to pay for separately is fuel.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

Value Proposition

Lexus hasn't yet named the insurance provider it's going with, nor any exact pricing information. But Tenhouse promises that it will be a value proposition. "We’re finalizing the starting price. The focus is on a value message," she said.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

Comparison's Sake

For comparison's sake, Care by Volvo pricing starts at $600 a month for the base XC40 crossover. Since the UX is likely to carry a similar MSRP, it's reasonable to expect something in that ballpark. Volvo uses Liberty Mutual as its insurance provider.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

Fine Prints?

As of now, Lexus hasn't decided whether or not it will allow customers to break the 24-month lease at the 12-month mark as Volvo does. Which, of course, is a big draw for many people who just have to have the hot new smartphone, or in this case, model. Lexus also hasn't determined what sort of mileage cap they'll put on their plan.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

First of Many

The good news is, any Lexus UX model will be eligible for the subscription service, regardless of trim or equipment. The monthly cost will simply be adjusted based on the car's price, just like a standard lease. And while this is Lexus' first foray into the next generation of car ownership, Tenhouse made it clear that it won't be their last.

"We are studying other subscription, ride-sharing, and car-sharing options as well. This is our first entry," she concluded.

>>Join the conversation about the Lexus subscription program right here in Club Lexus.

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