Car subscription services have been making headlines for the past few years, but only some understand why they are so revolutionary.
So what is an all-inclusive car subscription service exactly? This article will cover how companies like Wagonex, Onto, Elmo and Car Sloth, can help you find subscription cars that are right for your budget and driving style.
Let’s break down the most exciting benefits of this emerging vehicle ownership trend and why it’s likely to become an increasingly popular option among British drivers!
What exactly are car subscription services?
If you’re new to this, the easiest way to understand how these vehicle subscriptions work is to think of them as extended rentals, i.e. they’re a way to rent a car for a fixed period, which is usually a month (but some providers allow for much longer commitment). The monthly price includes all usual car costs, such as insurance, tax, roadside assistance and servicing.
You can choose from various subscription vehicles, including some of the latest electric cars from Tesla, Volkswagen, Renault, Kia and many more!
Once your subscription ends, your provider will collect the car from your home. Sounds easy, right? That’s because it… kind of is!
All the benefits of driving a new car without the long-term commitment
One of the key benefits of car subscriptions is convenience. With a car subscription, consumers can switch between different vehicles and styles, depending on their needs. Want to rent an SUV for the winter? Done. Want to switch to smaller car for the summer? Easy.
As mentioned above, car subscriptions include maintenance, insurance, and roadside assistance, meaning drivers don’t have to worry about these additional costs or the hassle of dealing with them.
Another critical benefit of car subscriptions is the flexibility they offer. With a traditional car ownership model, consumers are locked into a long-term commitment – PCP and HP finance contracts can be quite the burden!
With a car subscription, consumers can choose a subscription term that best suits their needs, from a single month to more than a year! The longer you commit, the cheaper the monthly payment is.
Three reasons why car subscription companies are seeing a lot of funding
Vehicle subscription providers are seeing a lot of funding because there’s a lot of confidence in this new market. Subscriptions are everywhere, it’s only natural that this model was going to migrate over to cars too!
Not to mention the benefit of always driving the latest new cars. Here are the three reasons we think the car market is going to be revolutionised!
1. Consumers have more choices.
A car subscription allows you to choose a vehicle that best meets your needs. For example, you may prefer to drive something with more space or better fuel economy but don’t want to fork out for an expensive new car.
You may want to try an electric vehicle. Or maybe you need something reliable that can get you through winter.
Car subscriptions give consumers these options because the subscription model is flexible enough for manufacturers to offer multiple types of vehicles at different price points, all without requiring consumers to go through a ton of paperwork or haggling over financing terms. Most car subscriptions allow customers to choose from several different monthly plans, where the price is always all-inclusive. This means no nasty surprises!
With these annual leases, drivers pay an upfront fee followed by monthly payments until the end of their contract, or even wholly-owned vehicles with interest-free financing over several years!
2. Dealerships get the chance to drive customer loyalty.
Imagine a dealership that offers more than just cars. With car subscriptions, dealerships can drive customer loyalty with a subscription service. They can offer more than maintenance packages and unique financing options – they can also provide individualised discounts to customers who have subscribed
The opportunity for dealerships is clear: They have a chance to be part of something bigger than just selling cars—they can create an experience that keeps people coming back again and helps put more cars on the road, rather than be stored on the forecourt waiting for a buyer!
3. Consumers can subscribe to vehicles they could never have afforded to own.
If you’re the type of person who likes to get a new car every couple of years but wants to avoid going through the hassle and cost of obtaining financing for it, car subscriptions might be for you!
You can subscribe to vehicles that are out of your price range. So whether it’s an expensive luxury vehicle or an SUV with all the bells and whistles—if you cannot afford to buy one outright, this is one way around it.
It’s true that the monthly price on models like Audi e-Tron can be upwards of £1,000 per month but the point is that you can always change your mind. Plus, if you add up all car costs over 5 years and divide that per month, you will be surprised to see that monthly subscription payments won’t be that far off!
The bottom line
Car subscriptions might be the future, but they’re also a way to enjoy new cars. So it’s easy to see why companies offering vehicle subscriptions are seeing a lot of funding and why British drivers are dabbling more and more!