Cadillac will launch a luxury vehicle subscription service, BOOK service, which will allow customers to book any Cadillac on a month-to-month basis for a monthly fee of $1,500. Other services such as Uber and Zipcar have created a worry that young people are turning away from traditional car ownership.
The New Service
Cadillac is launching a new service allowing customers to “temporarily own” any Cadillac on a month-to-month basis, without the hassle of long-term commitment of leasing, financing or purchasing. This, along with other services, has been creatinig a worry in the auto-industry about the decline of traditional car ownership.
Car manufacturers are currently worrying that younger generations have been turning away from traditional car ownerships.
Ride hailing services such as Uber have been found easier for people living in cities, and rental services such as Zipcar have gained popularity among young people over the past few years. Car manufacturers had also seen a “big decline” in car sales last year.
“BOOK is aimed squarely at Gen X and Y customers who want the experience of a luxury vehicle without the hassles of traditional ownership,” Melody Lee, director or brand marketing, told Vocativ. “BOOK fills a gap between traditional ownership (leasing, financing, buying) and the efficient, but less personal aspect of rental, car- and ride-sharing (Hertz, Zipcar, Uber/Lyft).”
Cadillac is offering this service for $1,500 a month, making it more expensive than its leasing services, which would cost $300-$750 a month, depending on the model.
However, members would only have a month-to-month commitment, can switch cars whenever and however they’d like (up to 18 times a year).
Customers also wouldn’t have to worry about mileage limits. They also wouldn’t have to worry about registration, taxes, maintenance or insurance.
In the case of car accidents with the temporarily owned car, the member would be responsible, but Cadillac would handle the insurance. They would cover the premium, and the member would cover the $750 deductible.