Cadillac recently announced a major stepping stone for the future of its business model in Book by Cadillac. The service will allow customers to effectively “rent” a Cadillac for as long as they’d like for a flat cost of $1,500 per month. Maintenance and insurance are also included in the $1,500 monthly fee.
We spoke with Cadillac to get a few more details about the service from a branding perspective, and it’s clear Cadillac thinks this will attract new consumers to the brand.
At launch, the service will only be available in New York City, which Cadillac states this is on purpose. Capacity for the program is also described as “limited” to start, but the brand wants to ensure this is a very exclusive service. For this reason, Cadillac is also not allowing the concierge service to be shared. Flexibility is built in to handle additional capacity down the road.
The service aims to capture an audience interested in owning luxury vehicles, but don’t want to be tied down to anything long term. As stated, this is a month-by-month service. For one month, you may choose an Escalade, the next month, a CTS-V, if that’s what your heart desires.
Cadillac thinks the service will drive traffic into dealerships, building upon the old hierarchy of dealership models. You start in a smaller, entry-level vehicle, and through your life, you continue moving into the next best thing. Once this presumably younger audience is ready to settle down, actually purchasing a Cadillac may be at the forefront of their mind.
It’s certainly a unique way to look at capturing customers, and we think it’s one of the best moves we’ve seen from Cadillac in some time. Book by Cadillac is currently exclusive to the United States, and the brand will announce future U.S. markets down the road.