Lexus Considers Subscription Program Of It's Own

Porsche offers one. So do Cadillac and Lincoln. Volvo does, too, and Mercedes is preparing to launch one as well. Now word has it that Lexus could be next.

We’re referring to subscription programs, which are fast emerging as a compelling alternative to the usual choices of buying or leasing a new car.

According to The Detroit Bureau, the Japanese luxury automaker is closely examining the possibility of launching its own subscription program. “There’s nothing to announce” just yet, Lexus marketing manager Michael Moore told the Bureau. “But it’s certainly something we’re looking at.”

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MDarringer - 3/26/2018 10:11:50 AM

+2 Boost

What's funny--and as many dealers will tell you--a "subscription" program exists behind the scenes where key employees "lease" a vehicle with no down nor a long term at a silly-low monthly payment. Typically, participants are encouraged to drive slow-selling products that languish on the lot so they can be counted as a sale and then turned over as a CPO or sent out to auction.

bw5011 - 3/26/2018 5:07:02 PM

0 Boost

Dealers send cars CPO worthy cars to auction? That is news to me...

MDarringer - 3/26/2018 5:57:10 PM

+1 Boost

If that's news to you it's because you're not in the industry.

Given the sheer number of cheap leases that go out, those cars simply cannot go onto the CPO lot otherwise there would be no perceived value to buying a CPO over a used car.

Your use of "CPO worthy" is hilarious. I even called several people over to laugh at it with me.

All CPO means is that someone has looked at the car to make sure nothing is egregiously wrong, just like a dealer does for used cars.

Toyota and Honda flush a LOT of lease returns to auction as do Audi, Mercedes, and BMW. Where do you think CarMax gets their supply of gently used vehicles?

If anything, the invention of CPO was pure marketing genius. You take a used car, slap on the cost of an extended warranty, tell the customer it is "certified", and charge more than a used car.