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Lexus has joined the ranks of automakers exploring subscription services, though the luxury division of Toyota refers to its initiative differently. Named Lexus Complete Lease, the program incorporates elements of a standard lease while also resembling existing subscription models by combining costs for a vehicle, insurance, and maintenance into one streamlined monthly payment.
Currently, the only vehicle offered through this program is the Lexus UX crossover. Participants must commit to a two-year, 20,000-mile agreement and pay a unified monthly rate that encompasses insurance and routine maintenance at intervals of 5,000 miles. The package also includes “connected services” such as SiriusXM satellite radio, although Lexus has not disclosed the pricing details.
This program is limited to seven states: California, Florida, Illinois, Indiana, Massachusetts, and Rhode Island. It is being facilitated through Lexus dealerships, which are responsible for maintenance on the vehicles involved. According to a press release from Lexus, nearly 80 dealers have signed on to participate in this initiative.
Engaging dealers in this program may simplify operations for Lexus. There is considerable apprehension among dealers regarding any program that might enable automakers to sell directly to consumers, as this could jeopardize their businesses. In fact, a group of dealers in California is challenging the Care by Volvo subscription service. Similarly, greater dealer involvement is a focus in the revamp of the Book by Cadillac subscription initiative.
Despite the potential for friction with dealers, several manufacturers are piloting subscription services. Most of these are small-scale experiments, though Lincoln has launched a subscription service centered on used cars. Jeep is poised to follow suit, teaming up with Avis to debut a pilot program in Boston later this year.
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