CANCEL ANYTIME

For $1,500 a month, Cadillac is offering a luxury-car subscription service

Obsession
Getting There
Obsession
Getting There

A once-cool, century-old American luxury car brand is embracing a staple of modern commerce: pay as you go, with no long-term commitment.

Cadillac will launch a $1,500-a-month luxury car subscription service that will allow members to swap out different models of high-end sedans and SUVs, beginning with New York next month. It’s the same business model as ClassPass or Netflix, but just for the GM-owned Cadillac brand.

Called “Book by Cadillac,” members will use a smartphone app to order on-demand delivery of Cadillac models—including the Escalade SUV, the XT5 crossover, the CT6 sedan, and V Series models—to a location of their choosing. Members can keep a single model for up to 60 continuous days, but then they need to change their car. They can make up to 18 exchanges a year.

Taxes, insurance, and maintenance costs are included in the monthly rate. Drivers pay for their own gas and mileage is unlimited. Members can cancel at any time.

The New York area is in a state with declining car ownership rates, so the chance to sample a fleet without having to sell the vehicle later on, or even commit to a three-year lease, may be successful. This year’s Escalade model starts at around $75,000 while the CT6 sedan starts at around $54,000. Cadillac will later roll out the program in other cities.

What the Cadillac app won’t do is help users find parking in New York. But, luckily, there are apps for that, too.

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