As the economy looks like it will face even tougher times yet, luxury car makers pivot to provide greater flexibility to full and part time owners.
Jaguar and Land Rover have announced they are now offering a month-to-month subscription model which includes rental costs, insurance, road tax, serving and repairs for a single monthly payment. Whilst there was news in June, that Mercedes-Benz was halting its car subscription service Collection, after lacklustre demand Range Rover has put flexibility at the front of their updated program. The brand stated their belief that more than 10% of their US and UK ownership will be via subscription by 2025. The program called 'Pivotal' is comes in three possible tiers and claims to be a no-commitment service that allows members to swap between models every six months or pause their membership.
Source: www.carsguide.com
Whilst other luxury car brands including Audi and Porsche offer similar services, Jaguar's bold youth target and further tailoring seem to present a real backing in the subscription space of their business.
BMW have also announced a software subscription to its in-car experience software. All new BMW’s will already have Operating System 7 built in, where it is possible to not only update the cars infotainment system but virtually every line of code that is deployed to the various computer systems that make up a new BMW.
Owners will be able to subscribe to specific hardware features that may already be built into the car but that weren’t activated when purchased. Some features include: heated seats, advanced driver assistance systems, a forecast of the parking situation at a chosen destination and the ability to use your iPhone as a car key.
Whilst we await such services in Australia, it will be interesting to see how these brands continue to evolve and provide greater flexibility in a financially weaker, post-pandemic world.
Zoe Jarousek
