Mercedez Benz News Mercedes-Benz Launches A Subscription Service For U.S.

[William Maley]

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Mercedes-Benz is the latest automaker to join the subscription service game. 

The Mercedes-Benz Collection has launched a two-year pilot program in Nashville and Philadelphia which will give subscribers access to 30 models variants for a monthly fee ranging from $1,095 to $2,995. There is a one-time activation fee of $495 when you sign up.

"We know there is a market opportunity for people who would like the ability to move in and out of vehicles, depending on what they need or want at a particular point in time, or who don't want to own a vehicle right now. That's why we are excited to test the waters with Mercedes-Benz Collection," said Mercedes-Benz USA CEO Dietmar Exler in a statement. 

Three subscription tiers will be on offer - Signature, Reserve, and Premiere. Each tier will have a selection of models ranging from sedans to SUVs. Each tier will also have a selection of AMG models. The monthly fee will include 24/7 roadside assistance, insurance, and maintenance. Subscribers will use an app on their phone to choose any vehicle within their tier and will be dropped off by a concierge service.

Mercedes hopes this program will help bring in new customers and encourage current ones to consider buying a new model.

"There will be customers who will test five to 10 vehicles [via the subscription program] and then decide to buy one model," said Exler.

Source: Automotive News (Subscription Required), Mercedes-Benz

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Mercedes-Benz launches broadest luxury vehicle subscription plan in the U.S. with "Mercedes-Benz Collection"

• Luxury Vehicle Subscription Service to Launch as Pilot in Nashville and Philadelphia

Mercedes-Benz today launched Mercedes-Benz Collection, providing the broadest offering of any luxury automaker for those drivers who prefer the variety and convenience of a subscription service. A collaboration between Mercedes-Benz USA, Mercedes-Benz Financial Services USA and Mercedes-Benz dealers, Mercedes-Benz Collection allows subscribers to switch between different types of vehicles depending on their needs or lifestyle. The service is available as a pilot in two cities: Nashville, TN and Philadelphia, PA. 

"We're always looking to stay ahead of our customers' needs and wants, as well as to bring new people to the brand," said Dietmar Exler, president and CEO for MBUSA. "We know there is a market opportunity for people who would like the ability to move in and out of vehicles, depending on what they need or want at a particular point in time, or who don't want to own a vehicle right now. That's why we are excited to test the waters with Mercedes-Benz Collection."

"Customer's appetites are changing when it comes to how they access products and services, and our financial and mobility services are evolving to fit those demands. Adding Mercedes-Benz Collection's subscription services to our product portfolio is a natural fit," said Geoff Robinson, vice president, Mercedes-Benz Financial Services USA LLC. "We are working to provide one of the most diverse offerings in the market today and expect to learn a lot from this pilot."

There are three tiers in the program – Signature, Reserve and Premier – with two offered in each city and prices ranging from $1,095 to $2,995 per month (depending on city/level). Subscribers pay a one-time activation fee of $495 and may then choose from all the vehicle body styles offered in that subscription tier, including Mercedes-Benz SUVs, sedans, coupes, cabriolets, roadsters and wagon models. Each tier also allows access to the company's popular high-performance Mercedes-AMG models.

The Mercedes-Benz Collection works through a combination of the new Mercedes-Benz Collection app and a local concierge. Once subscribed, customers initiate vehicle exchanges, concierge communication and other actions via the app. Concierge staff then ensure the delivery is consistent with the details and preferences in the customer's profile. Subscribers can access any type of vehicle within their tier with no mileage limitations. The monthly subscription fee for the tier also includes insurance, 24/7 roadside assistance and vehicle maintenance.

How It Works:

• Those interested can download the Mercedes-Benz Collection app via the Apple App Store or Google Play Store and hit "Sign up"
• Users then create an account (provide a credit card, select a plan and provide a picture of the driver's license associated with the account).
• Information is verified, and driving and credit history are checked (subscriber may be contacted with any questions). In most cases, the application is processed and the subscriber is contacted within one business day.
• Subscriber is contacted to find out his or her vehicle needs and desired delivery time and location. After the first delivery, subscribers put their requests in via the app. Requests received by noon can typically be fulfilled the next day.
• Concierge delivers the new vehicle washed, with a full tank of gas and takes away the previous vehicle.

Further information on Mercedes-Benz Collection is available at collection.mbusa.com.   

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[David]

I really doubt people will pay the subscription rate price to drive various models over a couple of months and then buy. Seems over priced to me.

[smk4565]

So I could lease an S560 4Matic for $1500 a month, or pay $3,000 a month subscription to get the same car.  Sounds like a great idea.  These subscription services make zero sense if they aren't a ride sharing thing with an autonomous car where 4 people can split the cost up and get robot chauffeured around for $500 a month.

I think one other case this can work is for a replacement for car rental, where someone was on an extended vacation for a month or  at a 2nd home in retirement, or sent on business to work in a particular city for a month, and in this case it could be cheaper to do this than to rent a car from Avis or Hertz for 4 weeks.  But then if that is the purpose, you would need to do this in Florida for the retirees that go down there in the winter.