Earlier this month, BMW launched a subscription pilot in Nashville, Tenn., with the hopes of not only understanding the consumer appetite for subscription services from a luxury OEM, but also consumer behavior around such an offering.
One question BMW is hoping the pilot will answer, according to Swati Licis, strategic projects manager at BMW Group Financial Services North America, is, “What portion of the automotive customer is receptive to this option over traditional ownership?”
Licis said there are other questions BMW hopes to answer, such as “what are the challenges in operating this model successfully?” and “which vehicles appeal most to customers by demographic segments?”
The subscription dubbed Access by BMW offers two pricing tiers ranging from $2,000 to $3,700 per month, and both include vehicle maintenance, insurance, and BMW Roadside Assistance. The higher tier will provide access to a more varied group of BMW vehicles.
Models include the BMW 4 Series coupe and convertible, BMW 5 Series range, and the BMW X5 xDrive40e iPerformance and the BMW M2. All the vehicles are new and BMW Financial Services will absorb the cost of the pilot and depreciation risk of the vehicles, although Licis declined to share the anticipated costs.
BMW AG and Daimler recently announced plans to merge their mobility units for competitive reasons. Mercedes-Benz, a subsidiary of Daimler AG, is also launching a car subscription in the Nashville area, but it will be entirely separate from Access by BMW, Licis said.Like This Post