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Lexus Takes Wait-and-See Approach to Subscriptions
Toyota Motor Corp.’s Lexus unit has no immediate plan to follow rival luxury marques in testing subscription services that offer motorists on-demand access to a variety of vehicles.
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Toyota Motor Corp.’s Lexus unit has no immediate plan to follow rival luxury marques in testing subscription services that offer motorists on-demand access to a variety of vehicles.
It isn’t clear how to make money and serve customer needs with such schemes, explains Cooper Ericksen, Lexus' vice president of marketing, to Automotive News. He adds that neither dealers nor Lexus owners are asking for subscription services.
But Lexus is evaluating an all-in-one payment plan. The brand’s Complete Lease pilot program is testing the idea in certain markets with its all-new UX compact crossover vehicle. The two-year lease combines vehicle payments with insurance, telematics services and some maintenance into a single monthly fee for the 2019 model, which bows this month.
Dealers will set their own rates for the program. Lexus says the UX (shorter for user experience) is well-suited for the lease because its young target market already uses subscription services for other products. The program may be expanded to other Lexus vehicles in the future.
BMW, Cadillac, Lincoln, Mercedes-Benz, Porsche and Volvo are testing their own subscription plans with varying success. Cadillac and Lincoln are retooling their programs following weak customer demand for the pricey option.RELATED CONTENT
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