Car Subscriptions have been described as the Netflix for cars, you choose a car, choose a term and a mileage package then pay one payment that covers all of the motoring essentials, aptly named:
Car Subscriptions is the new “buzz” word in the industry. More flexible than a traditional car lease but much cheaper than using a daily rental company.
Car Subscriptions are more popular in the UK than ever before with even Volvo claiming that their own subscription program; Care by Volvo made up 15% of all its UK retail sales. Even Cazoo has moved into the subscription market by acquiring Drover.
This all depends on the car subscription firm you are using, it’s really important to compare the services offered by the providers as there are many pro’s and con’s.
Most of the providers provide routine maintenance, warranty, breakdown assistance and road tax with their monthly payment. Some even include insurance, but it is really important to read the terms and conditions.
Mileage Packages from provider-to-provider can vary and it is really important to ensure you don’t go price lead into a deal, you could be stung with excess mileage at the end.
If you do between 800-1000 miles per month, many of the providers include this mileage as standard. “Bolt-on’s” can be purchased to give you additional mileage but this can put the price up dramatically. Some of the small independent car subscription providers might prove better value when it comes to higher mileage programs.
28 day vs. Monthly
Another pitfall that we can all fall into when researching Car Subscriptions is the headline figure. Many such as Flexed advertise their rates based on 28 days. This means that you will make 13 payments per year and when you work out the monthly cost, it can be higher than most other providers.
Another hole that many customers fall into is the minimum amount of time you need to take the car to get the advertised price. Companies such as Wagonex and Cazoo offer cars with really good prices, but these are generally based on 24 months. This is not much use if you need something flexible for 3-6 months and need to return the car when it is no longer required, the whole point of a subscription.
Sending the vehicle back within this time will trigger an early termination charge, something you need to be aware of in the terms and conditions.
Legitimate companies will always carry out credit checks for FCA compliance and anti-money laundering, so be prepared for them to make a marker on your credit file.
If your credit score is far from perfect, some of the companies listed on this website may still consider you by looking at your affordability.
Cazoo use a system called Credit Kudos which uses the open banking system. Using your online banking credientials you effectively give Cazoo/Credit Kudos access to your bank statements. In turn, this system looks at your expenditure and income to see if you can afford the vehicle along with the running costs such as fuel and insurance. Things that can go against you include transactions to betting websites and lottery.
If you have bad credit more and more companies are starting to decline customers if they cannot demonstrate their affordability, income or if they pass thresholds for CCJ’s and IVA’s.
Electric Car Subscriptions
Before we end this article, it is a good idea to cover Electric Vehicles. A car subscription can be an ideal way of seeing if an EV will fit into your day-to-day life. Many consumers are worried about the anxiety range and by using a flexible program such as a vehicle subscription, you can fully see how this can integrate.
Many providers offer Electric Vehicles, some such as ONTO and Octopus only offer EV’s with some even throwing in free charging in the UK.
If you’re not quite ready to delve into fully electric cars provider’s such as Flexigo and Flexed have a great range of PHEV’s (Plugin Hybrids) – They are great middle-ground for those who want to make a transition from internal combustion engines to fully electric.
Use Our Website
To find out about vehicle subscription providers in the UK, use our website. Use our compare pages to see what the providers offer and the vehicles available. Once you have found the provider the ticks the boxes, click on the link to be directed to their website.
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