Jaguar Land Rover launches Pivotal subscription service

Two years ago, Jaguar Land Rover launched a subscription service in the UK dubbed Carpe. The program was effectively a 12-month lease with no deposit and no mileage limit, and an all-inclusive monthly payment covering insurance, tax, service, and repairs. For £910 ($1,134 U.S.) plus the cost of fuel every month, a subscriber could secure a Jaguar E-Pace at the bottom end, a payment of £2,200 ($2,741 U.S.) per month opening the doors to a Range Rover Sport. In between, the Range Rover Evoque cost £980, the Jaguar XE £1,200, the Range Rover Velar £1,255, and Land Rover Discovery £1,550. The numbers and customer feedback have encouraged JLR to turn Carpe into Pivotal, with new lease levels, terms, and restrictions. Instead of keeping a vehicle for 12 months, Pivotal subscribers pay £550 to join, then swap out every six months. Changing cars early incurs a £250 fee, or customers can request to stick with the vehicle they have beyond six months, but JLR reserves the right to switch out cars when necessary. Pivotal keeps tabs to the odometer, too — instead of unlimited driving, the program caps fee-free travel at 1,500 miles per month, 20 pence per mile after that. However, the FAQ section explains that "mileage is accumulative so do not worry if you do not use your full mileage allowance, the first month can be carried on into the next within a given vehicle." 

Carpe's six levels have been reduced to four Pivotal tiers. Blue costs £750 ($934 U.S.) per month and offers access to the Jaguar F-Pace, Land Rover Discovery Sport, or Range Rover Evoque, clearly a much better deal than £910 for an E-Pace (and we like the E-Pace). Indigo runs £1,150 ($1,433 U.S.) for the choice of a Jaguar I-Pace, Range Rover Velar, or Land Rover Discovery. Violet, costing £1,350 ($1,682 U.S.), comes with just one vehicle for now, the Range Rover Sport. Same goes for Ultraviolet at £1,600 ($1,993 U.S.), which gets the Range Rover. The brand already has plans to expand the fleet with the new Defender, and plug-in hybrid versions of the Discovery Sport and Range Rover Evoque

The only noted repair item not covered is windshield replacement, which carries a £150 deductible.

The splashy rework in England comes shortly after Mercedes-Benz shuttered its Collection service here in the U.S. On trial for two years in Nashville, Philadelphia, and Atlanta, Collection couldn't get the traction Mercedes wanted. Brand sales chief Adam Chamberlain told Automotive News, "If the demand would have been unbelievable, then it could have gone further. But demand was just OK...." Chamberlain did say the service attracted younger owners new to the brand, and Mercedes gained heaps of insight into issues like targeting those younger buyers and how customers interact with apps.  

JLR's Pivotal is still in the learning stages, too; a UK-only experiment run through the automakers' dealers, subscription users will help educate JLR on what the future of car buying, car ownership, and Mobility-as-a-Service (MAAS) are going to look like. According to Frost & Sullivan research the brand cites, roughly 18% of drivers prefer subscriptions to ownership, and they could "account for nearly 10 percent of all new sales in the USA and Europe by 2025 – equivalent to some 16 million vehicles*."