Johnny Cash sung about wanting a Cadillac. So did Bruce Springsteen.
Now, both singers — and New York drivers — can skip the loan process: Borrow a luxury vehicle for $1,500 per month? General Motors says that’s the plan.
Just before Groundhog Day, GM’s Cadillac is launching a car subscription concierge service of Cadillac cars and SUVs starting Feb. 1. The program is called BOOK by Cadillac and allows for the company’s vehicles to be delivered and picked up on demand for customers via a smartphone app. The program will be available first to New York City drivers, but the company says it has plans to roll the experience out to other larger American cities over time.
The targeted demographic is first-time drivers of GM’s luxury vehicles and intended to help Cadillac dealers over time. The vehicles themselves typically cost between $60,000 and $100,000 if purchased. The concept is hoping to whet the appetite for these drivers so that they end up leasing or purchasing these vehicles over the course of their life.
Back in September, as PYMNTS reported, Lyft announced that it sees car ownership disappearing from the future entirely. Cadillac says, “Not so fast.”
Cadillac spokesmen Eneuri Acosta firmly says that the concept is not a “ride-sharing” one but rather is intended to allow customers to keep a car at all times during the subscription.
GM’s learnings emerged after a three-month pilot program held in New York City during 2016’s summer and fall. One learning was that customers don’t necessarily need covered parking but that this concept would be considered as the program rolls out to other cities.
To get started next month, interested customers will begin the program on a monthly basis plus an upfront, one-time $500 initiation fee, with the opportunity to cancel with a 30-day notice. On top of that, customers can choose to swap vehicles — up to 18 times per year — from different makes within the Cadillac brand. However, on average, during the three-month pilot, customers only swapped two or fewer times.
Tell The Boss (Bruce) and ol’ Johnny: Applications for the service are now open to intrigued parties.