Ian Smith, BMW's chief executive officer of BMW Group Financial Services, will oversee Access by BMW, which starts in Nashville.
The old adage states that there are no original ideas and proving that one more time is Access by BMW, the brand revealed it will become the latest automaker to introduce a new subscription-based leasing plan.
The maker is using the app-based program to allow consumer to drive its top performance cars for as much as $3,700 a month. The new service kicks off this week in Nashville, Tennessee, and allows users unlimited access to cars.
The most expensive plan, the $3,700 version, permits users access to the company’s M-class cars and is appropriately dubbed the “M” tier, giving them access to the BMW M4 convertible, the all-new M5, BMW M6 convertible, as well as the BMW X5M and BMW X6M Sports Activity Vehicles.
The “Legend” tier, or lower level – $2,000 a month – gives them access to other vehicles like the BMW 4 Series (coupe and convertible), BMW 5 Series and plug-in hybrid BMW 530e iPerformance, the BMW X5 Sports Activity Vehicle, plug-in hybrid BMW X5 xDrive40e iPerformance Sports Activity Vehicle and the BMW M2.
(Volvo’s subscription service off to a fast start. Click Here for the story.)
BMW's 2018 M5 is a snarling 600-horspower beast is available through Access by BMW.
“The reason why we went with the upper tier, especially the ‘M’ tier, is we think we can learn an awful lot more with that clientele,” said Ian Smith, chief executive officer of BMW Group Financial Services in the Americas.
“This is about learning and ensuring with our dealer partners that we’re building a business model that’s sustainable for the longer term and not something that’s going to be a fad for this year.”
BMW is following in the footsteps of Volvo, Cadillac, Porsche and Audi, which have all introduced new subscription plans in the last 18 months. The company is just behind Mercedes-Benz, which said it was going to offer one as well last month. Mercedes model is really an extension of its existing German model named Flexperience.
Lincoln, which offers one for its used vehicles, and Lexus are also mulling subscription services but haven’t made any announcements yet.
(Click Here to see more about the growing list of automakers adding subscription leasing services.)
While most luxury brands are now offering subscription plans, they aren’t all the same. BMW’s is similar to Book by Cadillac and Porsche’s Passport service. Users can swap vehicles often – at the push of a button really – and the monthly payment includes the lease, insurance and maintenance into one monthly payment.
BMW’s model, which has a monthly payment significantly higher than simple lease payment of an M-5, doesn’t require the large upfront payment or downpayment that conventional leases often demand. In the case of an M-5 in Nashville, that would amount to more than $5,700.
If the Nashville pilot proves successful, BMW would launch a third, less expensive tier to broaden access to the service, Smith said.
“A pilot program is a great opportunity for us to learn. In the future, the nationwide network of BMW dealers will be integral to the success of Access by BMW,” said Smith.
(To see more about BMW and Mercedes merging their mobility services operations, Click Here.)
“We will depend heavily on their close collaboration to continue to meet and exceed consumer expectations, and to ensure the sustainable development of this new business model.”