Lexus to Launch Vehicle Subscription Service in USA

Discussion in 'Lexus Lounge' started by krew, Mar 21, 2018.

  1. krew
    krew Administrator
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    Last edited: Mar 21, 2018
  2. krew
    krew Administrator
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    I would be very tempted by this, to be honest. I already lease my cars, so it's not like I own them anyway. It would be great to swap from IS to GS to NX to RX depending on what I need to do.
     
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  3. MrJamison
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    This sounds interesing considering I only keep my lease 18 months or so.. Hopefully it works out.
     
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  4. zeusus
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    I believe this started with Cadillac right? It would essentially be a car rental company with a guaranteed customer base. Im sure car rental companies would LOVE subscribers.

    It would totally make sense as its a industry disruption move, something that T-Mobile would launch against Verizon and AT&T for more market share.

    Its hip to the new "sharing economy" as well as provides even more options to luxury buyers.


    Lexus SHOULD do this, more options = better.
     
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  5. Brooks2IS
    Brooks2IS Premium Member
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    I don't think there's harm in offering this type of service, especially when most Lexuses sold are a certain combination of packages anyway. However, thorough research will have to be done in order to find where it would be profitable for this type of service to be implemented.

    I know that at dealers not in large metropolitan areas, a large percentage of people purchase their Lexus rather than lease. This topic has been discussed on the forum before, where Lexus has a higher percentage of finance purchases rather than leases when compared to their German rivals. What then, does a dealer do with a car that someone can return at any point and there isn't someone waiting to take it? Does it get used in the loaner fleet? It can't sit around and not make money.

    An interesting idea would be to pay a monthly fee to have access to any vehicles in the loaner fleet. Use it when you need it, return it when you don't. Most dealers have popular products like RX, NX, ES, & GX in the fleet anyway.
     
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  6. GTG
    GTG
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    Lexus should make this a priority, I lease two cars and not only would this be saving for me and may others , added with reliability and a lowest payment possible for the customers. It would equal more repeat customers and $$ in the bank .
     
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  7. RAL
    RAL Staff Member Moderator
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    Sounds very appealing since we lease only ... It would be interesting to see how the costs compare.
     
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  8. corradoMR2
    corradoMR2 Founding Member
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    Well, I would seriously consider it if this would match or be cheaper than my lease payment with insurance and maintenance costs. However, I don't see it as being cheaper. Cadillac charges $1800 per month for access to one car at any one time among the predetermined fleet. I was paying that amount in Cdn $ for both the IS + RX leases with all taxes, insurance/maintenance combined. Of course, if you're paying that amount for a single loaded LS/LC/LX then it may make sense since you get the variety of (lesser) Lexus vehicles, but not for me when I have (and need) two cars.

    Untitled.jpg

    The other negative for me personally is not feeling that the car is mine. Even though I lease some of my Lexus vehicles for a relatively short time (~2 years), I still treat and customize them (wheels, rims, tints, drop) like they're mine.

    Still open to the possibility though...
     
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  9. GTG
    GTG
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    I agree man . The price that you quoted $1800 is a lot for one car .Volvo has there's for $600 hundred for the base XC 40 and $700 hundred for the R Design . If Lexus can do better on the price ( 400 ) to (500) for NX , IS , and UX this would work as well as make a subscription that allows the leaser to buy the car for less . This new subscription thing that everyone is doing won't pick up if the price is not less . The prices for Porsche,Cadillac and Mercedes are too high .
     
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  10. Levi
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    Yes Lexus should do that, because others do, even if I dislike this concept, because it makes no logical sense if one can change cars from a single brand that has the same cars. Lexus should also this program to get a Toyota. What is if you need a Tundra for a while?


    I personally hate this concept for many reasons.

    1. It is a "consumerist" concept, where the buyer always looses. Pay, you have, stop paying you have nothing. Change all the time and get the latest, even if it is not the best. Who needs a solid and reliable product, when you'll change before it breaks or is worthless?

    2. If the goal is to have a vehicle at disposal for each situation (i.e. a pick up truck for the boat you tow that day, a limousine for the day you drive your clients, a sports car for track day or mountain road trip, etc.), then the products are really bad in almost all cases, because they are all redundant and offer very little diversity. A sports that is not a single car, does not need to be compromised by comfort, tech and practicality for example, as is the case with Porsche 911/718. A pickup does not need limousine luxury carpeting and leather dash if it is used for "dirty" stuff, and so on. But what single brand has a car for each purpose? Except Mercedes (and who knows how their program works: can you get an AMG GT or AMG GT4 and a Sprinter?), no other, unless you consider TMC one. Volvo has 3 SUVs and 2 sedans/wagon. I see no benefit in being able to change between any of them.

    Lexus has 2 coupes, 3 sedans, and 4 SUVs/CUVs. Basically a sport(y /-s)car, a daily car and a utility car. If the ideal garage is 3 cars, it is better, easier and cheaper to take the best car of each car category cross-shopping all brands. The most used car on a daily basis is the most important one, and the one that will change more often because of use. Why change the other ones if they work fine?


    Such programs, for consumers (not professionals) are money grab and only benefit the company (if it works). The customer always loses.
     
    Last edited: Mar 22, 2018
  11. GTG
    GTG
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    Your right but if Lexus crosses brands with Toyota that would help choices and cost . Plus car insurances will have greater losses and even have to merge with car companies to serve. The car companies don’t want to have a problem like 2008 anymore . Turning there businesses in to a stand alone, and not depending on other factors,by taking over other assets . All of the brands will do this but who does it the cheapest and with more reliability will win .
     
  12. Nate Wiener
    Nate Wiener Premium Member
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    In a word, yes. If Lexus doesn't roll it out at the OEM level, individual dealers and dealer groups will. It's inevitable.
     
  13. krew
    krew Administrator
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    $1800 per month is brutal for one vehicle, but the Cadillac line-up is rather limited and must cover all models. Lexus could break up their offering in two ranges: Standard & Executive. Standard could be ES & RX on down, and Executive could be all the L-models.

    I don't see how it's much different than leasing, except maybe an additional cost for the flexibility. Sure wish I could swap my IS with an NX every few months depending.
     
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  14. spwolf
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    Why in the world would Lexus offer more expensive NX for less money per month than cheaper and smaller XC40?

    Everyone needs to understand that this is an value added service from manufacturers, where they want to make more money, not less. So it is never going to be cheaper, but it might be simpler and let you switch cars easily.
     
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  15. Levi
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    Exactly. But "value added services" are usually marketed as "money saving advantage". Uber type car service is sold as cheaper than owning a car, when it is not true, because it depends on many factors. Have you seen a car ad with sale price, rather than monthly lease rate?

    I don't have sales statistics, but when I worked for a car bank product strategy, the data I had was worthless. Quite surprising for big data and big brother surveillance to be so useless and incomplete.
     
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  16. Joaquin Ruhi
    Joaquin Ruhi Staff Member Moderator
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    This is only loosely related to the subject of this thread, but a couple of days ago Toyota Japan announced a new Premium Class car rental service offering Lexus models. Here's the introduction of the official news release:


    Pricing charts (in Japanese yen, of course) and additional information are best viewed on the original News Release
     
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  17. corradoMR2
    corradoMR2 Founding Member
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    Interesting post!

    Some rough math in USD:

    CT: $3oo /day
    RX: $4oo /day
    LS: $600 / day

    From a N.AM perspective, this pricing conversion is insane - the cost to rent an LS is comparable to renting an exotic car for the day. It gets worse if you rent per hour.
     
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  18. mikeavelli
    mikeavelli Staff Member Moderator
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    It really makes a ton of sense.....
     
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  19. Joaquin Ruhi
    Joaquin Ruhi Staff Member Moderator
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    It seems that "Lexus by Subscription" will be with us sooner rather than later. The Lexus USA Newsroom press release for the North American debut of the UX line contains this passage:

     
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  20. krew
    krew Administrator
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    Last edited: Mar 26, 2018
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