In an effort to tackle industry disruption head-on, New England retailer Prime Motor Group is experimenting with vehicle subscriptions to position itself for a future that could include more customers who don't want to own or lease a vehicle.
Last week, the dealership group in Westwood, Mass., launched Prime Flip in suburban Boston. The monthly vehicle subscription service is capped at 50 customers initially. It already has signed up some members, and vehicle deliveries will begin the week of July 8, said Amanda Rosenberg, director of operations for Prime Flip. She declined to specify how many people have signed up.
"We're definitely a company that looks to be ahead of the curve," Rosenberg told Automotive News. "We see this as a new and exciting opportunity in the industry and something we want to offer our customers."
Prime Motor Group joins a growing number of dealership groups across the country offering vehicle subscriptions to woo customers who want flexibility. David Rosenberg, CEO of parent company Prime Automotive Group, previously told Automotive News that he wants to grow the company through acquisitions and other auto retail investments such as a subscription service or an app to enable complete online vehicle transactions.
Several automakers recently have launched their own vehicle subscription programs such as Book by Cadillac and Access by BMW.
Prime Flip members can access premium and luxury sedans, crossovers, SUVs, pickups, coupes and convertibles from brands such as Mercedes-Benz, Porsche, Audi, Acura, BMW, Ford, Toyota, Chrysler and Chevrolet. Vehicles are new or very gently used, said Amanda Rosenberg, the daughter of David Rosenberg and the third generation of the family to work in the dealership business.
Prime Flip will hire concierges, who will deliver and exchange, or "flip," vehicles for members, she said. Customers can swap vehicles as often as they want and can request a specific nameplate using the Prime Flip smartphone app. Assessing customer survey results and previous customer preferences, the concierge service will suggest vehicles for specific outings, such as a Chevrolet Suburban for the family vacation or a Porsche 718 Cayman for date night.
Prime Flip has a $500 enrollment fee and costs $1,995 per month, plus tax. Insurance, maintenance and vehicle registration costs are included. Members can drive a total of 2,000 miles a month before a per-mile overage fee begins. Unused miles roll over to the next month.
The program is open to people 25 and older with a driver's license and clean driving history. Enrollment is handled through the app. Prime Flip is using technology developed by Clutch Technologies, of Atlanta, for its service.
Members currently must live within 50 miles of Prime Flip's operation center in Westwood.
Amanda Rosenberg said Prime Flip is focused on the Boston area for now. Working with Clutch Technologies, Prime will collect data on where there is interest for the service, she said. David Rosenberg previously told Automotive News that he would test a subscription plan for at least six months and then launch it at appropriate stores.
Prime Motor Group has about 30 dealerships in Massachusetts, New Hampshire, Vermont and Maine. Parent Prime Automotive Group formed last fall after Prime Motor Group and GPB Capital's Capstone Automotive Group combined.
Prime Automotive Group ranks No. 13 on Automotive News' list of the top 150 dealership groups based in the U.S., with retail sales of 46,163 new vehicles in 2017.