Mercedes-Benz and BMW will be joining the world of automotive subscriptions. The subscription model will cover all of the fees required with car ownership or leasing under one payment. The two companies will soon be announcing pilot programs for a subscription service, Automotive News reported on Tuesday.
Both companies will be joining the likes of Cadillac, Porsche, and Audi in offering customers a more simplified payment solution and the flexibility to get a newer car faster than any traditional lease of finance plan. BMW Group and Daimler, Mercedes-Benz’s parent company, already run car-sharing firms.
“We are in the phase of looking at it and evaluating together with BMW Financial Services,” BMW of North America CEO Bernhard Kuhnt said during the Detroit Auto Show. “And if we are going to do it, we are going to pilot it first to learn more about it.”
Trying out the subscription-based model is something Mercedes-Benz wanted to try, according to global sales chief Britta Seeger, although in more markets, unlike BMW’s plans to pick a single area and go from there.