Book by Cadillac offers buyers a new ownership experience. Customers pay a flat fee and drive whatever model they like, up to 18 per year.
Cadillac wants to change the way luxury car owners think about buying a car. Caddy has announced a novel approach designed for what the General Motors brand’s marketing chief calls the “sharing economy.”
A blend of traditional car ownership, leasing and car-sharing, Book by Cadillac lets a customer pay a flat, $1,500 monthly fee and then switch cars as often as 18 times per year. That means a motorist might opt for the Cadillac XT5 crossover during the week, swapping out for a high-performance CTS-V over the weekend or, perhaps, the full-size Cadillac Escalade for a weekend of tailgating before the big game.
“Book by Cadillac is an innovative new option targeted at a growing class of luxury drivers searching for access to various cars over time, dependent on their individual needs, coupled with a hassle-free white-glove exchange,” said Uwe Ellinghaus, Cadillac chief marketing officer.
And unlike a traditional purchase, the Book by Cadillac service is open-ended, so there is no long-term commitment. The service can be cancelled at any time.
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Customers can go from the comfort and room of a Cadillac Escalade ...
Caddy isn’t the first automaker to look for an alternative to traditional car buying. Audi explored a concept similar to Book by Cadillac a few years back, but never turned it into a serious venture. Meanwhile, Caddy parent General Motors is one of a growing list of major automotive manufacturers participating in car-sharing services where motorists can rent a vehicle by the hour, as needed. It even launched its own car-sharing service, Maven, early last year.
There are growing questions about the future of traditional car buying in the sharing economy. In a blog post last year, Josh Logan, a co-founder of the ride-sharing program Lyft, predicted private vehicle ownership could all but vanish in many urban areas within the next decade. While few experts share that extreme view, most studies forecast rapid growth for ride and car-sharing services during the next decade or two.
There are a variety of reasons. Flexibility could be one. Instead of being saddled with one vehicle – and a long loan agreement – sharing service users can opt for the type of vehicle they need at any particular moment and they will pay when they use the service.
There are downsides, too, including not having a vehicle readily at hand.
... to the power and performance of the new CTS-V performance sedan.
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With Book by Cadillac, there’ll always be a vehicle in the driveway though, on average, a motorist might change out what they’re driving around every three weeks.
The price tag is steep compared to what a motorist might pay if they were only looking to own one of Caddy’s base models. Though the premium isn’t as severe for those who might otherwise purchase a top-end model like the Escalade, the high-performance CTS-V or Cadillac’s flagship sedan, the CT6, which can go for $70,000 or more when loaded with options.
Observers say they aren’t necessarily surprised to see Cadillac try this experiment. The automaker was once the biggest luxury brand in the U.S. but has slipped into the second tier of high-line brands, well behind imports Mercedes-Benz, BMW and Lexus.
Despite launching new models such as the CT6, meanwhile, Caddy’s U.S. sales dipped last year – though it did grow on a global scale, thanks to a rapid expansion in China.
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For the moment, Book by Cadillac is limited to customers in metropolitan New York, one of the country’s largest luxury markets. Caddy moved its headquarters there from Detroit several years ago, in a bid to get closer to its market. Brand officials are not discussing plans to expand beyond New York, but are clearly open to the idea if it catches on in the Big Apple.