Automotive - - Jan 06,2017
General Motors has announced that it will begin a $1500 per month service to rent Cadillac cars and SUVs in New York and hopes to expand the service soon.
Users can access to an entire fleet of Platinum-trim Cadillac cars like the Escalade, XT5 and CT6. The fleet also features Cadillac's super-fun V Series, and is likely to include the 640-horsepower CTS-V.
The initial phase of the luxury service is expected to attract dozens of first time drivers of GM’s luxury models. This first of its kind service is named “Book by Cadillac”. With this service, not only people can pay the monthly fee to keep a car, but they can also swap that car at any time for a different Cadillac model. Users can switch cars for as many as 18 times in a year.
Melody Lee, head of marketing at Cadillac, said that the idea of this service is to add a level of luxury to the emerging concept of ‘sharing economy’.
The agreement is not long term and extends for only a month, so it can be terminated at any time. If users want to continue, they can keep paying the monthly fees and continue driving a new Cadillac.
There is an additional one-time $500 fee for set-up and registration. The total rent includes insurance and regular maintenance. However, there are no additional charges for swapping cars.
Cadillac is headquartered in New York and for now, it is test marketing the service only there. The company will launch a smart phone app using which customers can get their vehicles delivered and picked up.
The idea of subscription vehicle service isn't necessarily new. Back in 2005, Sun Microsystem's CEO tossed the idea of a service where car ownership shifts to a subscription-type model. However, such an idea was never implemented.