I like to check my bank account online on a regular basis, its a very busy statement but if I dig deeper I can see a huge pattern. Most of my outgoings are now subscriptions, so why not subscribe to a car?
Yep, I’ve got Netflix, Amazon Prime and I even subscribe to receive 6 tea bags a month and its increasing. In Business a subscription model is one of the best to be in, regular monthly income instead of one hit every 1 to 2 years.
It works well for most customers, for instance I pay £7.80 per month of Microsoft for my Office 365, with it I get customer service and a few updates. So what if that model is then migrated into a car.
Car Subscriptions are here!
Lots of companies are saying that car subscriptions are new, they aren’t new they have just been re-labelled. Believe me, my company has been offering them since 2008.
But now the manufacturers have realised what a good idea they are, everyone is taking notice. Volvo, Land Rover and BMW have all realised the potential in the model and its going to become mainstream very soon.
Why Car Subscriptions?
The subscription business model is spreading, it provides consumers with flexibility and convenience, offering upgrades and downgrades, with even a pause button if required.
Cars are the 2nd biggest purchase for most people after buying a house. Just like buying a house that requires a mortgage for the majority, a car might also require financing.
In the UK, there are loads of options when it comes to financing a vehicle including Hire Purchase, PCP’s or Contract Hire, but most require you to take it from 2 years up to 5 years. If its a Hire Purchase or a PCP, it can be difficult to change the vehicle if it depreciates to quickly. A lease or a contract hire, is even harder to terminate early.
Car subscriptions provides you with a vehicle on a month to month basis and includes things such as rental, maintenance, roadside assistance, vehicle excise duty and with some firms, even insurance.
If you need a car for a month, its going to cost a bit more but its not an issue and you can return it early. Plus it will be cheaper than renting a vehicle from one of the big boys for the same length of time.
Want a convertible for the summer and an SUV for the winter, yep, car subscriptions would be ideal for you. Want to holiday for a month and not leave the car around? Just pause it. Things a little tighter in the household, downgrade. Its quite easy.
Who offers Car Subscriptions?
In the UK, at the moment only a handful of companies and manufacturers offer a Car Subscription service, these include the following:
- Care by Volvo
- Jaguar Land Rover
- BMW & Mini via Drover
- Car Subscriptions by Cocoon Vehicles
- Flexigo Car Subscriptions
Of course, these will be joined at some point by other suppliers and manufacturers but its worth noting that this is no fad, these car subscriptions are here to stay.
Do I need a credit check for a Car Subscription?
Each and every supplier will have their own criteria when it comes to credit checking for a car subscription, generally to get the rate advertised, you will need to have a satisfactory credit rating and a credit card to pay for the subscription on a monthly basis.
There will be certain suppliers who can offer a ‘non-status’ car subscription but don’t expect to pay the advertised rate, they may require a higher monthly cost, upfront fee or even a deposit.
Other good reads about Car Subscriptions
- What are Car Subscription Services — Edmunds.com
- Car Subscriptions — gadgetgeekboy.co.uk
- Why Car Subscriptions — Medium.com
- Netflix for cars? — cbc.ca
What are your thoughts on Car Subscriptions?
I’d love to hear what you think about Car Subscriptions, would it fit into your lifestyle, can you see the pro’s and con’s to this service? Comment below and I will try and answer as many as possible.