BMW Cuts Subscription Prices To Battle Mercedes, Now Starts At $1,099 Per Month

When BMW launched its subscription service in Nashville, Tennessee earlier this year, the entry-level Legend tier cost $2,000 per month.

A number of things have happened since then, but the biggest was the arrival of Mercedes’ subscription service which launched in the country music capital last month. Dubbed the Mercedes-Benz Collection, the service significantly undercut BMW as their Signature tier cost $1,095 per month and gave subscribers access to an assortment of different vehicles including the C-Class, CLA, GLC and SLC.

Automotive News reports BMW is firing back by cutting prices and launching a new entry-level tier. Called Icon, the tier costs $1,099 per month and will give subscribers access to models such as the i3, 330i, 330e and M240i Convertible. Subscribers can also choose between two crossovers including the X2 and X3.

Besides the new entry-level tier, BMW has reduced the price of the Legend tier from $2,000 a month to $1,399 a month. Despite the significant price cut, the model lineup remains unchanged as customers can choose from the M2 Coupe, 4-Series Coupe / Convertible, 5-Series Sedan and X5.

The change means the mid-level tier is more affordable than Mercedes’ Reserve tier which costs $1,595 per month. It remains unclear if the automaker will respond by cutting their own prices, but it’s a possibility.

Last but not least, the range-topping M tier has seen its prices slashed by over $1,000. It now costs $2,699 per month and gives users access to high-performance models such as the M4 Convertible, M5 Sedan and M6 Convertible. Other options include the X5 M and X6 M.

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  • Dude

    I’d much rather have an XC40 for 750 a month than a non-M BMW for 1000+

    • Andrewthecarguy

      Erm…Ok.

      • Dude

        I really like the XC40 and only thing at the ICON level at all worth 1K a month is the X2. And everything is so low trim and low option. With the XC40 you get the R-Design.

        • Andrewthecarguy

          It’s more than just the price of the car. it’s insurance and maintenance and some fuel. I get what you mean tho. My guess is if (when) Volvo embraces this subscription model it would cost a lot less because of panache.

  • Ermal Morina

    I don’t like this subscription thing.I know it makes sense and all,but having your own personal car just it’s that more exciting for me.

    • Andrewthecarguy

      Yep. You are not the target audience.
      Employers can use this as a benefit for example. As a package for certain employees.

  • LJ

    I don’t get how this works… who would pay $1,000+ a month to borrow a car?

    • Kash

      it’s not just for the car. it includes insurance, a full tank of gas, and the ability to change cars at the drop of a hat as your wants, needs, and whims desire. Want a convertible for the weekend while the weather is nice? Boom, M240 delivered to your house on Friday when you get home from work. Monday’s here, your family is coming into town so you need a crossover to pick them up from the airport. Boom! M240 taken away, X3 dropped off. Family leaves 2 weeks later and you want to get back into a small sedan for commuting to and from work? Boom! X3 picked up and a fresh 330e is dropped off in it’s place. If you do it right and change cars every time it gets low on gas you never have to pay for gas again either.

      • LJ

        Still not worth it.

  • E Gold

    These ‘subscription’ programmes are blossoming for the same reason gentrification is skyrocketing in Pittsburgh’s East End.
    These tossers are overjoyed to spend $1,000-2,000 a month to rent an apartment, to exude an aura of success, when it’s actually the thinnest veneer of achievement. They don’t own anything, and after perhaps tens of thousands in expenditures, will have no property or vehicle to show for it.
    The only tempting aspect to this whole scheme is the ability to absolutely flog an M-anything, day in, day aht, and have no obligation whatsoever to maintain or insure the thing, whilst you mercilessly wring out every concievable ounce of enjoyment from the car.
    I wonder if track day jaunts or YouTube hooning violates some morals clause buried in the fine print.

    • Choy

      Owning a house is not a smart investment… its an emotional decision. The growth in housing prices across the US is easily outpaced by the average return from the S&P. Let alone paying taxes, repairs, etc.
      To argue this point would be to say that a house doubles in price every 9 years (assuming an 8 percent annual return, average in the stock market). Sure that may be the case in some extreme markets, but is certainly not the average.
      Renting is a decision for those who like to plan ahead and stay strict to the plan. They know exactly how much is going out and likely know exactly how much is coming in. Cars, houses, etc are all a gamble as far as what you’re going to end up spending.
      Sure $1,100 sounds like a bit much for renting a car, but if you’re anything like me, you get sick of your car (no matter how cool it is) in a year or so and get screwed on trade in values. By being able to rotate your car selection some people may be less bored and get shafted less on the trade in process.

      • TheHake

        But $1300 each and every month. That’s a bit excessive. I LOVE cars, and my problem has always been that I change cars every 2 years. But for that kind of money it’s just not worth it.

        • Andrewthecarguy

          If you made 3 times more than you currently make it would not be an issue for you.
          When I was in the car business, I could not understand people gladly leased an M6 convertible ($130k plus) for $1600 a month. But same individual makes ~$40k a month, has a $9000 mortgage and the M6 convertible is a weekend toy. The M6 was turned back in 2 years later with less than 10k miles on the odo.

          It all boils down to economics.

          A lease or buy payment on some of these cars is over $1000 a month. Add insurance and you are easily at the ask for the subscription. And you get o change the car at will. Makes PERFECT sense. Most subers have a business and the cost is a tax write off as a business expense.

          • TheHake

            The problem is NORMAL people also do this. Chugging themselves into crazy debt to “seem” successful. Like Bob once said, being rich and having lots of money has nothing to do with each other. But then, the mentality toward money is totally different in the New World than in the Old World.

          • Andrewthecarguy

            Exactly…Old World and New World money mentality is different.
            YouTube millionaires and American Idol winner types did not exist decades age, so the ethos of hard work, investing and one day having a nest egg to rely on was the status quo but is no more.
            New World folks want to glam for as long as humanly possible than just die.

          • Kash

            Don’t forget gas. Each car is dropped off with a full tank, in theory you could swap cars every time one gets low on gas and never have to pay for gas either. $1k/month in insurance, gas, car detailing (each car is also detailed before delivery) and basically a lease payment is a steal all while also avoiding maintenance costs, depreciation, and having to try and get a loan and go into debt. You can cancel this subscription service at any time and not owe anything.

            @Andrewthecarguy:disqus

          • TheHake

            How many times can you swop per month? And can you cancel after just 1 month?

          • Kash

            as many times as you want and yes. you can cancel or pause at any time. This is from BMW’s own website. You’re not locked into contract, it’s all month to month.

          • TheHake

            I must say I find that hard to believe… If you change a car every day, do 800km on it and get one the next day full with petrol… I’m sure they wont allow that.

          • Kash

            Switches are unlimited but they do charge for gas. (That was buried in the FAQ’s) but they don’t charge a premium or service fee for refueling if you don’t return the car with a full tank.

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