Lexus to Launch “Lexus Complete Lease” Subscription Service in Q1 2019

Jumping on the car subscription bandwagon, Lexus plans to launch its Complete Lease program in four markets – Chicago, Miami, Boston and Los Angeles

Subscription News: Lexus to Launch “Lexus Complete Lease” Subscription Service in Q1 2019

Source: Lexus

Jumping on the car subscription bandwagon, Lexus plans to launch its Complete Lease program in four markets – Chicago, Miami, Boston and Los Angeles – in the first quarter of 2019, reports Digital Trends. The program will allow subscribers to lease a Lexus UX crossover for two years, and it will be available weeks before that model is available for purchase in the U.S. Like other car subscriptions, Lexus will test the subscription service in a few markets and make adjustments as needed before making it more widely available.

“We talked about starting it nationwide but we wanted to get a sense of how this would play out,” said Cynthia Tenhouse, general manager of product and consumer marketing for Lexus. “Our plan is to test it [in urban areas], and if we’re successful we will look at rolling it out nationally.”

Lexus is developing a program similar to those by other manufacturers, including Book by Cadillac, Jeep, BMW and Mercedes-Benz. The Complete Lease will be available at a bundled price that includes the lease price, routine maintenance, insurance and extras like SiriusXM subscriptions. Lexus has not finalized its base pricing for the subscription program yet, reports Digital Trends, but the two-year Complete Lease option will be available on any UX, regardless of color and features.

Subscription News: Lexus to Launch “Lexus Complete Lease” Subscription Service in Q1 2019

Source: Lexus

According to the Car Connection, a 2019 Lexus UX200, will be priced at $33,025 and go on sale in December. The UX250h will go on sale in January and will be priced at $35,025. In addition to the subscription program, the UX models will be available for traditional purchases and leasing. The UX will include CarPlay, a feature that lets drivers access smartphone applications, as well as integration with Alexa.

The launch is slightly later than Lexus planned when it originally announced its timetable this spring. At that time, Lexus had hoped to launch in December, but it did not release many details at that time.  Lexus said in a March news release that it would offer “a new way to access a Lexus.”

“When the UX goes on sale in December of 2018, there will be a new option in addition to the usual purchase and lease processes. For the first time in the history of Lexus, the UX will be offered through a subscription service. Details will be announced closer to the UX on-sale date,” read the March 26 news release.

This may not be the only subscription only available for Lexus vehicles, however. Lexus told Digital Trends that it is considering a second subscription program where subscribers would pay a flat monthly fee in exchange for access to different models of Lexus luxury vehicles.

Insider Take:

More auto manufacturers are willing to try out subscription services as a “new” option for buying a car, but so far, no clear version, model or pricing has emerged as successful. The manufacturers have also not revealed a lot of information about what’s working and what isn’t. We think it will take a few years for manufacturers to figure out if car buyers are ready for the subscription model as well as what features are most popular and how to price the product so it is attractive to consumers yet profitable for manufacturers and dealers. We’ll continue to follow the auto subscription market and keep you posted on the latest news.

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