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The current automotive market is in a peculiar state. People are overwhelmingly opting for SUVs, electric vehicles are gaining popularity, and now you have the option to enroll in a car subscription service akin to signing up for a streaming service. In an under-the-radar announcement on Wednesday, Lincoln discreetly revealed the expansion of its luxury subscription service, following the lead of other car manufacturers who envision this type of service as the future mode of transportation.
This isn’t your typical lease agreement; it goes beyond that. Subscribers pay a fixed fee and are assigned a car to drive. This fee encompasses not only driving costs but also insurance, warranty, maintenance plans, and roadside assistance. The subscription plans offer great flexibility in terms of the duration you intend to use the vehicle, with options ranging from a single month to a full year. Moreover, subscribers have the freedom to switch their vehicle whenever they desire.
This move isn’t entirely novel for Lincoln, as it has been running a trial version of this service in California since 2017. Its parent company Ford runs a nearly identical service and reported approximately 600 subscribers to the program as of February.
An integral part of the appeal of subscribing to Lincoln’s service revolves around the time-saving benefits it offers. Recognizing that its clientele highly values their time, especially in their daily routines, Lincoln aims to leverage this by providing conveniences that minimize disruptions. For instance, in the event of a breakdown, Lincoln’s warranty covers everything from retrieving the vehicle to supplying a replacement and returning the car after the service is complete, all at no additional cost. In select cities, Lincoln even provides a personal chauffeur upon request.
While Lincoln has not disclosed the pricing for the expanded service yet, Ford’s comparable service, which is available in the same regions and is less focused on luxury clients, starts around $400 per month.
Can convenience triumph over the traditional car ownership model? Various other automakers are wagering on this notion, believing that it not only caters to an unexplored revenue stream but also reflects a changing consumer preference. Brands like Cadillac, Porsche, and Volvo have recognized the potential of a subscription service as a more preferred ownership model compared to traditional car purchasing and are moving forward with plans to introduce or expand their own services.
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