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Mercedes-Benz launches subscription vehicle service

Mercedes is introducing a new way to drive its cars.

Following in the footsteps of other luxury vehicle manufacturers, Mercedes-Benz has announced a new vehicle subscription service known as Mercedes-Benz Collection.

As with similar subscription programs already offered by luxury marques like Cadillac and BMW, Mercedes-Benz Collection gives customers access to a number of Mercedes vehicles for one monthly price. The service is initially launching in Nashville, TN and Philadelphia, PA, but is expected to expand to other U.S. cities.

"We're always looking to stay ahead of our customers' needs and wants, as well as to bring new people to the brand," said Dietmar Exler, president and CEO for MBUSA. "We know there is a market opportunity for people who would like the ability to move in and out of vehicles, depending on what they need or want at a particular point in time, or who don't want to own a vehicle right now. That's why we are excited to test the waters with Mercedes-Benz Collection."

Customers will be able to choose between three different service tiers — Signature, Reserve and Premier — with monthly prices ranging between $1,095 and $2,995. Subscribers must also pay a one-time activation fee of $495. Mercedes has not broken down which vehicles will be available in the different tiers, but the company says its AMG model will be accessible at every level. Mercedes also didn't outline any restrictions on the number of vehicles available per month.

Once subscribed, the customer can simply order a vehicle via a smartphone application. The customer can also specify a delivery location and time. Every vehicle is delivered washed and with a full tank of gas, and the cost of the monthly service covers insurance, 24/7 roadside service and maintenance.