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Book By Cadillac Creates A Market-Changing Catalyst That Nobody Is Talking About

If you recall, Book by Cadillac is a $1,500 month-to-month subscription car sharing service that allows members to schedule out the finest vehicles Cadillac has to offer when they want, for as long as they want. These vehicles include the lithe ATS-V, the omnipotent CTS-V, the multi-role XT5 Platinum, the venerable CT6 Platinum and the imposing Escalade Platinum. Insurance and maintenance are included, as are white-glove pick up and drop off services. The concept aims to be the ultimate convenience for those who would rather not deal with some of the inconveniences associated with owning a vehicle, so long as they can afford it.

We see Book by Cadillac as not only groundbreaking, but also modernizing the concept of vehicle usage and ownership. And over time, it might prove to be a catalyst for an entirely new sales model for the auto industry.

This is because the program enables Cadillac to directly control the user experience. In other words, Cadillac completely circumvents the traditional dealership franchise model, while still getting customers behind the wheel and earning revenue from the transaction.

For its part, Cadillac claims this is not the intention. But Pandora’s box has been opened, and we’re likely standing in front of a massive paradigm shift in the way consumers have traditionally purchased automobiles, which is the same way their grandparents have, and maybe even their parents before them. But the concept of car sharing changes all that, since a brand would never have to “sell” a car per se (because pro-franchise-dealership laws make direct sales illegal in the USA), but can still monetize its products by cleverly renting them out for hours, to days, to months. In Cadillac’s case, for $1,500 a month.

A brand like Cadillac, or even greater, a company like General Motors, could wisely control its inventory by circulating vehicles in a car-sharing fleet, since cars that weren’t selling (or weren’t being ordered by dealers) would now make money. The practice gives automakers an opportunity to earn incremental (or perhaps greater) revenue, while reducing stockpiles of unsold vehicles at factories and at dealers. Getting there, however, will require establishing processes and infrastructure to support such a model… though Cadillac (and GM) already appears to have it.

To scale something like this on a national level, who would handle all of the repairs or the managing of inventory for a car sharing program like Book by Cadillac? How about cleaning, delivering and picking up the vehicles? This is where the existing dealer body would play a vital role in the success of a nationwide car sharing program. Dealers already perform all of these tasks for customers, day in and day out, making nobody better positioned to handle these responsibilities. And, should a Book by Cadillac customer be so enthralled by one of the many products they might be driving, a local dealer would be able to sell them that very product as a “traditional car sale.” Contingently, this is what Cadillac and its dealers both want. But, should a customer just choose to drive a Cadillac on a month-to-month basis, hassle-free, they can do that too by using Book by Cadillac. And they wouldn’t need to set foot in a dealership to do it.

Former staff.

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Comments

  1. For a business owner/executive, that payment will be a deductable expense. I wish I had it when I was a manager in the 1980’s!!

    Reply
  2. This is a outstanding idea! I just wish this was expanded to include the entire GM portfolio.

    So I could pay 1500.00 a month and drive any car or truck I wanted within the Cadillac division for as long as I wanted or change it up as many times as I needed?

    I am asking if this is how it works? If this is the case then I would definitely be interested in this option!

    Reply
    1. You’re allowed to change out the rented Cadillac up to 6 times a year.

      Reply
      1. 18 times a year*

        Reply
  3. Here’s my question… If I’m paying $1500/mo, I don’t want someone else’s used car thrown down my throat…

    Reply
  4. What happens when these cars are ready for the used car market ? Who is going to want a car that has been driven by multiple people . And if it is anything like a rental car , people drive the $hit out of them because the car isn’t theirs .
    It may be good on the front end but reselling these cars could be a headache .

    Reply
    1. And how would you know how many people drove them during their time in Book?

      And it’s a big assumption that these will be driven the $hit out of. Most normal people don’t actually abuse their cars, rental or otherwise. More like an industry myth. If anything, these will be really well cared for on the service/maintenance end of things… like some rentals are.

      And even if people drove these hard, who is to say that the cars are worse off than a car that has been babied? Is it actually worse off?

      Reply
      1. There’s interesting research on the motorcycle world showing that bikes that are driven hard are actually more durable, more reliable, with a better engine, less oil loss and more power. It’s really interesting because on motorcycles many people accept it, but on cars everyone wants to baby…

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    2. They will go to auction and buyers won’t even know…

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    3. One thing I have never understood is why people care how many people have owned a car? What does it matter weather it’s a 1 owner car or the car has 5 owners?

      Sometimes people just buy the wrong car and they get rid of it, doesn’t make it a bad car if it’s had a few owners!

      If someone could explain why this bothers you, and would you change your mind if you liked a car then found out 3 or 4 people have already owned it!

      Reply
      1. We like new cars 🙂

        Reply

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