In a world where you can get everything from dog treats to designer dresses delivered to your door, luxury car manufacturer Mercedes-Benz saw an opportunity.
“We had the environment to launch subscription in the vehicle space and we also had the technology to make it happen,” said Scott Keilman, manager of subscription services at Mercedes-Benz USA.
About 18 months ago, the Mercedes-Benz Collection launched in Nashville and Philadelphia.
“It’s easy to see the rapid pace of growth that’s going on in [Nashville] and that makes for an environment that is great for trying innovative things,” Keilman said.
Mercedes offers three plans for subscribers. The plans range from $1,095 per month to $2,995 per month and each requires a one-time $495 activation fee. Users have the ability to rotate their car to meet their changing lifestyle and according to Mercedes that is one of the selling points.
“You can stay in the vehicle as long or as short as you’d like,” Keilman said.
The plans cover insurance, maintenance and a personal concierge who will drive your next car to you when you’re ready to exchange your ride.
The Mercedes-Benz Collection is available to drivers who live within 25-miles of Mercedes-Benz of Music City off Briley Parkway and Mercedes-Benz of Nashville in Cool Springs.
“We’ve exceeded our expectations here, mostly in terms of who we are attracting to the program,” Keilman said.
Although Mercedes would not comment on how many people are signed up, program managers said their customers are younger than their traditional buyer.
“[We’re] finding some really valuable insights as a brand and as a program being able to adapt and change and try some new things. I think in that respect it’s been quite successful [in Nashville],” Keilman said.
Since originating in Nashville, Mercedes expanded the service to drivers in Atlanta.
About half a dozen car makers have similar subscription models. BMW also started it’s car subscription service in Nashville.