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BMW’s Subscription Service Just Got A Lot More Affordable

Industry News / 3 Comments

BMW has introduced a new entry-level tier to better compete with Mercedes.

Many automakers now offer monthly subscription plans in the US, including BMW, Volvo, Porsche and Cadillac. This year, however, Mercedes-Benz significantly undercut the competition when it launched its vehicle subscription service. While BMW's entry-level Legend tier cost $2,000 per month when it first launched, Mercedes' similar service starts at $1,095 per month, giving subscribers access to different vehicles including the C-Class, CLA, GLC and SLC.

Unsurprisingly, BMW is fighting back. According to Automotive News, the Bavarian automaker is cutting the price of its "Access by BMW" subscription service by introducing a new entry-level tier. Priced at $1,099, the new Icon tier closely matches Mercedes-Benz's entry-level plan and provides access to several models including the 330i, 330e iPerformance plug-in hybrid, X3, X2, M240i convertible and the fully-electric BMW i3. Considering how expensive insurance can be for luxury cars like these, it sounds like a pretty good deal since the flat-rate covers insurance and maintenance.

As well as introducing a new entry-level tier, BMW has also reduced the price of the Legend tier from $2,000 a month to $1,399 a month. It's a significant price cut, yet the model lineup hasn't changed, meaning subscribers can choose from the M2 Coupe, 4 Series Coupe or Convertible, 5 Series Sedan and X5. This makes BMW's service more affordable than Mercedes' equivalent mid-level Reserve tier, which costs $1,595 per month.

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The range-topping M tier has also been reduced by over $1,000. For $2,699 a month, subscribers will have access to a range of performance models including the M4 Convertible, M5 Sedan, M6 Convertible, X5 M and X6 M.

Access by BMW is currently only available in Nashville, but if it's successful it will hopefully expand to other markets in the future. Each vehicle is limited to 2,000 miles a month – any unused distance will roll over to the next month, or you'll be charged 50 cents per mile if you go over the limit.