Car Subscriptions are similar to a car lease but on a month-by-month basis. Some companies allow you to take a vehicle for one month, others want a bit more commitment from you.
The process for most of the car subscription companies is the same, you choose a car, choose your mileage and a minimum term.
You will then have to go through a verification process (and for some companies a credit check) to make sure you are who you are.
You can then arrange the collection or delivery of your car.
Not all car subscription providers include insurance within their monthly payments. It can sometimes work out cheaper by providing your own fully comprehensive insurance policy.
Many of the companies also accept fleet policies for your business.
A car subscription includes vehicle maintenance and its really important that you have the vehicle serviced in line with the manufacturer’s service guidelines.
As the end-user, you are responsible for making sure that the vehicle is serviced and should this be missed you could end up with a large bill at the end of the subscription.
Depending on the car subscription company, you can change your car as often as every month, but you do need to read any terms and conditions and swapping could prove costly.
Some companies will give you the best prices for committing to longer periods and if you want to change before this time is up, it may cost you extra.
If you don’t want to swap your car often, there are companies that allow you to keep the same car subscription for up to 12 months without it being swapped.
With all car subscription services, they offer breakdown assistance as part of their monthly payment. Just contact the breakdown company that is listed in your agreement or handbooks.
No, this is classed as accidental damage and therefore you will be liable for the replacement.
It is important to make sure you swap this like for like to avoid additional charges.
Most packages from car subscription companies start at 800 miles per month and most go up to 2,000 miles per month. No provider as of today offers an unlimited mileage car subscription.
We do have a handful of companies that will cater for up to 6,000 miles per month.
Make sure that you are realistic with your mileage requirements, excess mileage charges are generally higher than traditional leases.
If you have your insurance included then you need to pay for the fuel/electricity.
Also, many of the companies will charge an administration fee for receiving parking fines or speeding tickets.
It is also recommended to check the return conditions of the car subscription companies as they may charge you to rectify any damage that has been caused to the vehicle.
Age restrictions vary from company to company, but with most, you need to be over the age of 18 and pass the verification checks.
If you opt for their insurance, you may also need no more than 6 points on your driving licence.
There will be credit checks with most companies, however, many do offer, non-status car subscriptions where required.
This depends on your provider and you will require additional (chargeable) documentation to take your car abroad. Make sure you get the required documentation before leaving the country as you could be at risk of having your car compounded in a foreign country.
Read more about taking your car abroad in our blog: Taking your car subscription abroad
Most of the Car Subscription providers offer vehicles that are new or nearly new, so should you have a problem with your vehicle you will have breakdown cover included and the majority of the vehicles will also be covered on the manufacturer’s warranty, included with the vehicle.
All providers of car subscriptions should carry out the required checks to comply with Anti-money laundering and FCA compliance. If they don’t we would recommend avoiding.
Some of the car subscription companies may offer a car subscription-based on affordability checks and not take your credit score into account, it is worth having a look at each of the providers to see what their criteria is for an application.
We have laid out additional information on our Bad Credit Car Subscription page for those who feel they would not pass a traditional credit check due to missed payments, defaults, county court judgments and IVA’s.
We have a handful of suppliers that offer Car Subscriptions in Scotland. Laws are slightly different in Scotland therefore, many of the providers are hesitant in supplying cars across the border.
Many of the car subscription companies use a 28-day rate to advertise their vehicles. What you need to understand is that over a 12 month period, you will be making 13 payments. The payment date will also change on a 4-weekly cycle which may or may not fit in with when your salary is paid to you.
To understand the monthly equivalent, multiple the 28-day rate by 13 and divide this by 12. For example, a car advertised at £399 plus VAT per 28 days, would be £432.25 plus VAT per month.
A number of car subscription businesses use this way of advertising the rate to make it look more attractive.
Yes, a handful of the car subscription providers offer higher-end vehicles on a flexible month-by-month basis. These include manufacturers such as Audi, Bentley, BMW, Land Rover, Porsche, Maserati, Mercedes-Benz and Volvo.
Yes, a number of providers now provide Van Subscriptions on a flexible basis. These range from small to large vehicles, with some even offering specialist vehicles such as Campervans and Crew Vans.