Mercedes-Benz is the latest automaker to hop on the subscription bandwagon, launching its ‘Mercedes me Flexperience’ program in Germany, reports Motor Authority. Like similar auto subscription programs, subscribers will pay an all-inclusive monthly fee that covers insurance, maintenance, repairs and tire wear. With Flexperience, subscribers can drive up to 12 different cars per year for a total of 36,000 kilometers, or just over 22,000 miles, annually. Motoring reports that, if the subscription trial is successful in Germany, a pilot program will be tested in the U.S. next.

According to Motor Authority, the entire process will take place online including everything from choosing exterior colors and interior motifs to powertrain and other customizable features. At launch, the initial program will include models from Mercedes’ A-Class, C-Class, E-Class and S-Class. Pricing has not yet been announced.

‘Up to now, in all the tests, all that we have seen, what we’ve asked the customer to pay was a profitable basis,’ said Britta Seeger, Mercedes global sales chief.

While no formal announcement was made, Lexus hinted that it was considering a subscription program, said The Detroit Bureau.

‘There’s nothing to announce, but it’s certainly something we’re looking at,’ said Michael Moore, senior manager of product marketing for Lexus.

We first shared the news in January, when BMW and Mercedes announced their plans at the Detroit Auto Show.

‘We need to learn. In different markets, we want to try this out,’ Seeger said.

Like other automakers, Mercedes is considering a subscription program as an alternative to traditional car purchases and leasing. In reality, the programs are fairly similar. With a car purchase, unless a consumer buys the car outright, they often pay a down payment, followed by regular monthly payments for the life of their car loan. With the ownership model, there are no mileage limitations.

Leasing programs often start with a host of set-up fees (e.g., down payment, acquisition fee, security deposit, etc.), followed by regular monthly payments for a set period of time, usually three years. These payments are often lower than you’d pay for a car payment, but there are typically penalties for wear, tear and mileage.

With a subscription, consumers will pay a set monthly fee that includes taxes, insurance, maintenance and repairs. Because the fees are all-inclusive, they are often significantly higher than a car or lease payment. The benefits with the subscription program are that, with some automaker programs, drivers can change vehicles periodically. Vehicles can often be identified and customized online with little need to work with a salesperson or dealership. They also don’t have a long-term financial commitment, which can be attractive to some drivers. It is being pitched as a no hassle way to get a car without the burden of ownership. The downsides, of course, are the price, and penalties for excessive mileage.

Insider Take:

Many other manufacturers are testing the subscription model, including Hyundai, Cadillac, Ford, Volvo, Lincoln, BMW and Porsche. No one model has emerged that is an all-out success. In fact, we rarely, if ever, hear about how these programs are going or what tweaks the automakers want to make to perfect the model. As more players emerge, we expect to see some drop out of the market, many to join it, and some best practices to emerge as the subscription model is finetuned.