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It’s an exciting time for the automotive industry right now. So much is changing with emerging trends, innovative solutions and diversified means of vehicle access. 

 

The growing infrastructure and advanced technology being applied across the entire automotive spectrum - be it internal combustion engine or electrically powered - has meant the ways in which we are able to access vehicles is branching out into a smorgasbord of choices suited for various lifestyles and budgets. One notable example quickly gaining traction are "subscription" services.

 

First offered in the UK by Wagonex in 2017, the internet is now awash with various manufacturers and independent subscription-driven companies, offering a range of cars over a duration period tailored for you. Users can also opt for additional “all-inclusive” packages, which cover personalised insurance or routine vehicle maintenance, all under one monthly umbrella cost.

 

Subscription is just one of the options you can choose from to gain access to a car, with other common examples being Personal Contract Purchase (PCP), Hire Purchase (HP) and Personal Contract Hire (PCH, usually known as a Lease). In this Karfu guide, we give you a complete breakdown of what car subscription is, which manufacturers and dedicated brands offer them, and what factors should be considered before accessing a car through subscription.

Car subscription services are a means of accessing a car on a regular basis over a defined period of time, usually paid for by a single monthly payment, which includes a variety of associated car running costs like insurance, tax and maintenance, going beyond the terms of a typical lease. They act as the middle ground between daily rental options, such as Hiyacar or Virtuo, and long-term leases offered directly by companies like LeasePlan, or brokers like Gateway2Lease.

 

Most subscription firms operate in an online only environment, where the process can be completed in a short amount of time, subject to several checks to ensure that you comply with the requirements and legalities involved. You then agree on a monthly amount, in some cases a deposit, a subscription duration and the terms of the agreement. You’ll then finally take delivery of the car, either to your home, or via collection.

Generally speaking, the process of obtaining a subscription deal for a car in the UK will vary slightly from provider to provider, but the basic components will still remain the same. 

 

You browse through their website and determine which manufacturer, model and trim level suits your requirements, with providers often containing large variations of stock. Prices will be listed alongside it, with vehicle details such as model year or driving range (particularly relevant for electric cars) often also shown. 

 

The advantage of subscription is that some of the associated costs with running a vehicle are usually covered within the monthly deal that’s listed. Examples of these include insurance, tax, breakdown cover, and/or maintenance and servicing. This will also be provided in the deal details section, just so you have an understanding of exactly what you’re paying for (and what you are not). 

 

Once you’re happy with a deal, you’ll need to pass a background check (full details provided in the next section of this article), which could include a monthly affordability assessment. Once this has been approved, the deposit paid (if required) and the deal confirmed, the penultimate step will be to pick a deal start and delivery date for the car, with the final stage being to collect or take delivery of the car.

There are several terms and conditions that must be fulfilled before you will be allowed to take out a subscription deal, in addition to completing any relevant paperwork. They can vary sometimes, but the requirements usually won’t stray beyond the points which follow.

 

The conditions:

Note: This differs from provider to provider, but is usually limited to the following: 

• Age: You must be between 25 and 85 years old, and for some premium models, the minimum age could be increased to 30. Some providers will allow leeway in age, and could allow people as young as 18 (i.e. Care by Volvo).

• UK resident: You must be a UK resident at the time of agreeing your deal. 

• Full UK Drivers Licence: You must hold a valid UK driving licence, usually for a minimum of one year, and appropriate for the ‘type’ of vehicle you are applying for. If you previously had a non-UK licence obtained in another country, and have since exchanged it for a UK equivalent, you’ll need to supply proof. A provisional licence or a printed paper copy will not be accepted, either. So you must ensure you have your original licence.

• Minimum driving experience: You may be required to have one or several years of experience driving on the road before you can be accepted for a deal. 

• Minimum No Claims Discount (NCD): You may be asked to provide proof of your built up No Claims Discount. This could help reduce your insurance premium, too. 

• No previous insurance cancellation or decline: Some providers will ask if you’ve had a previous insurance cancellation or quote declined. If you have, they may ask why and allow you to progress or decline you a subscription deal, depending on the reason.

• County Court Judgements: You may be asked if you hold any unspent motoring convictions to your name. You must be truthful when asked, and explain exactly what the conviction relates to. 

• UK bank account: You will require a UK bank account to be able to pay your monthly instalments, this is usually expected to be in your name.

• UK income/Affordability assessment: Having a valid UK-related income that’s paid in GBP may be another requirement some providers could ask for. Some providers may also ask you to do a disposable income check, to see if you can afford the deal you’re subscribing to. 

• Guarantor: You may in some circumstances be asked to provide a guarantor, as a secondary point of contact if you are unable to keep up payments or are facing any financial difficulties.

 

The paperwork: 

• You may be asked for a scanned copy of your driving licence for the provider to store a record of. 

• You’ll need a letter or document providing a proof of address - typically, this is a bank statement or utility bill.

• Some firms may ask you for a DVLA check code, to conduct and verify a background check on your driving history

It’s not uncommon for car subscription providers to decline an application, since they can be quite strict with their terms and conditions. If you have been rejected, they should explain why and detail which requirements weren’t met, but this is not guaranteed. Some of the reasons why this could be are as follows: 

 

A relatively clean bill of past driving is an often vital non-negotiable factor, and you could be rejected if: 

• You have been banned from driving within the last five years 

• You are liable for more than one fault claim within the last three years 

• You have more than six points to your licence within the last three years (this is slightly more generic, but can be subject to change depending on the company) 

• You have been denied an insurance deal at some point in the past 

• You have been found guilty of any offences that result in more than six penalty points to your licence over the last five years, which includes bans or suspensions 

• You suffer from any disabilities or conditions of which the DVLA has not been notified e.g. epilepsy or sleep apnoea. 

• Return a bad credit check result or hold a poor credit history 

• You don’t live in the UK at the point of delivery

• You fail to provide any additional information requested for identity and/or solvency checks

• You return outdated or invalid identification documents

• You do not pass any associated affordability checks 

 

Certain professions could also be denied, with some examples being:

• A racing driver

• A journalist 

• A professional sportsperson 

• An entertainer or theatrical performer 

• A gambling/betting-related occupation 

Initially, you may be asked to pay a deposit in order to confirm your subscription agreement. The primary reason for this is because it acts as an insurance amount that covers any future unagreed arrears. The deposit amount will vary depending on the car chosen, and any optional extras that may be selected in your deal. 

 

Remember, certain manufacturers and models will command a higher amount dependent on availability and/or exclusivity. You may also be charged an additional fee for the delivery and return of the car, depending on where you’re located, and if they don’t offer a collection option. 

 

The whole point of car subscription is to allow consumers to wrap most of their monthly car costs into a bundle, to reduce the stress of having to make multiple, irregular payments to different companies for various car-related expenses. Examples of what could be included in your monthly subscription package are: 

• Insurance cover (may be subject to listed price, since it depends on your driving licence details)

• Warranty (covering mechanical repair costs)

• Vehicle tax 

• Servicing  and maintenance 

• Wear and tear (e.g. tyres) 

• MOT tests

• Breakdown cover and roadside recovery/assistance 

• Accessories, such as baby seats and tow bars (would need to be agreed beforehand)

Some costs will not be covered by your provider, since they may be subjective and entirely based on individual factors. Examples of these include: 

• Necessary consumables: Though maintenance and servicing is covered by most providers, you’ll be expected to top up any necessary consumables when required. This includes engine oil, engine coolant, washer fluid and Adblue for diesel cars.

• Windscreen repair: This will need to be checked with the insurance provider that will be covering your subscription car - some providers will include windscreen repair, others will not, so you could be responsible for maintaining any chips or cracks that may appear. 

• Car wash: The car will be handed to you in clean condition, and it will be your responsibility to maintain this during your contract period with regular washes - both inside and out. 

• Parking permits: Depending on where you live, your council may require you to pay for your residential parking permit - you can check that here. The cost of your parking permit will not be covered by your subscription deal. 

• Fines and tickets: Any fines or tickets, for violations such as illegal parking or speeding, will not be financed by your subscription company, since this is an individual error and not that of the provider.

If you are subscribing to a petrol or diesel car, fuel will not be covered under your monthly subscription costs. 

However, some EV subscription providers, such as elmo, could include the cost of charging within its deals. This may relate to both home and public charging, so make sure you enquire about this before subscribing.

While there will be a number of costs that will be covered in your subscription package, several factors will need to be agreed upon that are dependent on your personal usage amount and your driving history. They are:

 

Mileage - This is one of the most significant factors that will change the cost of your monthly subscription deal. Providers will usually include a base mileage cap for every month, which can be adjusted before agreeing a deal, depending on how many miles you think you'll cover. In some cases, this can be readjusted after your deal begins, if you realise you aren’t driving as much as you thought you would. This will also change the amount you pay every month accordingly. 

It’s also usually cheaper to plan ahead of time and pay for it if you think you’ll be using more mileage than what’s provided, while some companies also offer the ability to amend your subscription package in the interim. It’s also worth noting that, at the time of writing, ‘unlimited mileage’ subscriptions are not currently available on the market. 

You can usually expect a monthly allowance of between 800-1,000 miles, with some providers also allowing you to carry over unused mileage into the following month. Be wary, however, because exceeding your monthly mileage cap will result in an additional charge for every mile covered. Again, this varies from provider to provider but, currently, you can expect this charge to range from between 20p per mile to as much as £1.25. 

 

Insurance - This isn’t necessarily something that could be negotiated, but it’s something that would almost certainly vary for each person, since it depends on factors like the vehicle you have chosen, where you live, how long you’ve held your licence for and how clean it is. 

Any deal that was originally put in place will not be increased or decreased during the length of the contract. If the provider has made changes to its price range for any of its models, you will be duly notified during your contract. The agreed price will not change for you during the length of the initial contract. You will also be notified of any price increases to your particular deal, and should be given plenty of time before the increase takes effect. 

 

For instance, if you subscribed to a car today from a provider, and you agreed on a price of £1,000 per month for a three-month period, this will stay as it is for the next three months. If the provider announces that, one month into the agreement, it plans to increase the price to £1,050 per month, you will not be affected unless you agree to prolong your subscription beyond the initial term. So, you’ll continue to pay £1,000 until the end of the three month period, by which time you’ll then be paying £1,050 until further notice or cancellation.

This is the area where the popularity of car subscriptions becomes very obvious. Since you are able to keep your subscription rolling over to the next month, unless pre-agreed, you are not obliged to continue. You can subscribe to a car for a single month, or keep it rolling over for as many as three years (with some providers). 

 

However, there can be a difference between short-term and long-term subscriptions, depending on the provider. With short-term subscriptions, typically lasting between three and 12 months, the range of cars being offered may be restricted to a smaller selection. In most cases, subscriptions also automatically renew once the agreed upon time frame has surpassed, usually for the same length as your previous agreement, so you should be aware of this as you approach the end of your term. If you opt for a longer term contract, the provider will usually allow you to choose specifically what car you want (including in some cases a brand new car), rather than a car that's available (and convenient) for the provider to supply you with. 

 

Short-term subscriptions are also an option that is convenient for people that are waiting for a new car to be delivered. They can also allow you to ‘live in the moment’, perhaps a convertible during Britain’s short summer months? Or maybe a luxurious sedan for the winter months? An additional benefit of a short-term subscription is that you can trial a particular type of car to see if it agrees with your lifestyle, before committing to a longer term deal. For those looking to switch to electric, it could be a good opportunity to ‘try before you buy’. 

 

But do remember, short-term subscriptions are more expensive than long-term deals, since the price and the contract length are correlated: the more months you subscribe to in advance, the cheaper your monthly cost will become. It’s also worth noting that the duration of a month varies between providers, from between 28 and 31 days, so this could fluctuate the amount that you’re paying over time. 

 

You may also not be eligible for an early termination fee and struggle to negotiate a refund for only partially using a given month’s subscription. Another notable point is if the car has been returned to the provider in a condition beyond the ‘fair’ wear and tear waiver, you could be subject to a corresponding repair cost at the end of your agreement. 

In some instances, your car subscription package will have fully comprehensive insurance cover provided with it. It’s also common for providers to use the term “fleet insurance,” which means you’ll also be covered if you decide to switch to another car from the provider’s fleet. 

 

If insurance is included into the built-in cost, your monthly subscription amount will be dictated by your chosen vehicle and your driving record, taking into account factors such as how long you’ve held it or how clean your driving history is. 

 

In the instance that your provider does not supply you with insurance, you will need to sort this out yourself through a separate provider. You will also need to ensure that it is fully comprehensive, since this is what most subscription providers will ask for if you’re going to get insurance privately.

Almost any type of car, within reason. The growing list of manufacturers and models on offer means you’re pretty spoiled for choice and grants you the ability to choose a number of body types, suited for a breadth of different purposes, needs and lifestyles. 

Using Karzoom as an example, you can opt for four car classes: Mini, Small, Medium SUV or Large SUV. Among the offerings are the Kia Picanto, a low-cost, low-maintenance example of a back to basics city car. You can also subscribe to the current-generation Kia Niro EV - a great opportunity for the family person to get acquainted with running an electric car.

With the growing prominence of electric cars in modern day society, it comes as no surprise that almost every subscription company has electric cars in their line-up - some companies are even dedicated to purely offering zero emissions cars, with elmo being a prime example of this. 

 

Elmo currently offers a selection of different EVs, including smaller entry level urban crawlers like the Fiat 500e, Renault ZOE and Vauxhall Corsa-e. You can also find in-demand cars like the Volkswagen ID.3, to family friendly alternatives like the Hyundai Kona and the Citroën e-C4. Several premium models are also available, with some of the headlining acts being the Polestar 2, Jaguar I-Pace and Audi e-Tron SUV. 

 

Having the option of subscribing to an electric car for a set number of months is also a great way of introducing yourself to the future and, with many people still having qualms or experiencing confusion surrounding electric car use, a short-term solution may just be the perfect way to help you better understand how one might fit into your lifestyle.

Some subscribers may need particular additions to enable their car to fulfil its intended purpose. An example of this is accounting for a child: the provider may issue a baby seat, or any other baby-proofing materials needed, to ensure the subscription car can happily accommodate for your little people. These can sometimes be referred to as “Recurring Add-Ons,” with other example requests including accessories like luggage racks or tow hitches.

Yes, but this is usually only offered to a long-term contracted subscription. This is understandable, since building a car from scratch for a customer who is only willing to subscribe to it for a few months seems like a slightly wasted exercise. Instead, if you want to subscribe to a car that’s built specifically for you, you’ll usually be asked to commit to a term of around three years, give or take a few months. 

 

It’s also worth factoring in that you’ll need to wait for the car to be built, which could take anywhere from three to 12 months to complete. Regardless, the option is there for those that wish to exercise it. 

 

Alternatively, you could subscribe to a nearly new or used car on a short term contract, be on the road soon after a delivery date has been set, and time your short-term agreement to end before your new car arrives. This is likely to prove an expensive option and not without risk, as your new car may not arrive on the originally scheduled date, leaving you without a vehicle.

Yes, you can. In fact, most of the cars you’ll see on subscription provider websites will be used to some degree, with a handful of them being less than six months old. You can even find cars that are several years old, but don’t expect classic cars to be available.

 

The main advantage of opting for a used car on subscription is that your monthly cost will be lower than that of a brand new equivalent. You’ll also be more likely to be presented with a wider range of options across more manufacturers and models. 

For instance, a scroll through the Mycardirect subscription listings will yield results of cars with varying mileage counts, from as little as 100 to over 10,000 on the odometer. Ultimately, it wouldn’t make sense to only offer brand new, or close to new cars for subscription, because it doesn’t allow providers to utilise their full stocklists.

This depends entirely on whether the car you’ve subscribed to is immediately available or not. In the case that it is, you could even benefit from same day delivery, if not the next. It would work the same for collection too, with some dealers also providing up to one month from the subscription date to collect the car, in the event that you’ve decided not to get it delivered to your home or specified location. 

 

If you’re going to get the car delivered, and the delivery date has been confirmed, either you or a named driver must be present to accept delivery of the vehicle, with the courier expected to ask you or your substitute to provide your driver's licence for proof of identity. 

 

Once the formalities are done, the courier will take some pictures of both the interior and exterior of the vehicle, so the provider can compare the wear and tear upon delivery. You would also be wise to do this for your own personal records, in case any disputes arise over the car’s condition. 

 

You should also use this opportunity to visually observe any blemishes in and around the car that may not have been stated in the advertisement. The final assessment you should conduct is a road test, to ensure the car is working as expected. Don’t forget to test both the physical and touch screen buttons, while ensuring the driving dynamics are in order: so no sudden power losses, creaky brakes or unusually bumpy suspension, to name a few. 

 

If you need to change the agreed delivery date, ensure to notify the provider well in advance. Most will be able to change the delivery date with one or two days notice, while others may need as many as five days. You could be charged a fee if you’ve requested a revised delivery date that doesn’t comply with the notice period. 

This depends on the provider, but many of them do allow it - with conditions attached. Remember, the whole point of a subscription service is to enable you to essentially ‘rent’ a car for a given period of time, after which you can return it, or continue your subscription with the provider by choosing another car. Of course, the price of your deal is unlikely to remain the same, and will be adjusted to reflect the make and model of your exchanged subscription car. 

 

There are many benefits that come with this flexibility, namely, that (deal dependent) you get to experiment with different cars more easily than with a HP, PCP or PCH agreement. This could help you to decide on a particular car that you may want to access on a longer term contract, or even buy outright. Where electric cars are concerned, this also allows you to trial different EVs to help you decide which, if any, would work for you. 

For example, MyCarDirect will allow you to change your subscription car on a monthly basis, and do so free of charge anywhere within the mainland UK. We recently spoke with the provider, who notified us that it had just swapped a Tesla Model 3 for a Model Y for a customer right up at the very top of Scotland for no additional cost. So, with providers like MyCarDirect offering free swaps around the whole country, this type of vehicle access is ideal for people that are looking to explore the ever-growing market of automobiles without having to commit to long term agreements. 

Remember, the car does not belong to you when it’s a subscribed vehicle, so you must treat it as such with care and responsibility. Generally speaking, subscription providers like to ensure the quality of their fleet is maintained, and that they haven’t been used to partake in any unlawful activities. Here are a few of the don’ts while you’ve got a car on subscription: 

• Do not attempt to repair any damages or mechanical failures at a local garage 

• Do not leave the country unless you’ve exclusively gained permission from the provider to do so

• Do not change or alter the car in anyway, both aesthetically and mechanically 

• Do not use the car for advertising, commercial or business purposes - this includes encumbering it with heavy goods

• Do not take more people in the car than seats provided 

• Do not partake in any activities that could have your licence rescinded, such as driving under the influence of alcohol

Yes, some providers will allow you to tailor your package so additional drivers can be added on to your insurance policy. This could depend on the additional driver(s) satisfying the aforementioned eligibility quota. For instance, if they’re under the age of 25, the chances are they will be denied insurance cover for your subscription car, since only a handful of providers insure people under 25. 

 

In the event that you do get additional drivers covered as part of your subscription, you should be wary of amending your package accordingly. This especially applies to the monthly mileage cap, which you should avoid surpassing. Keep in mind that the subscription package should not only be tailored for you, but also to those you may wish to add as part of your deal.

Again, the answer is yes, but there is a big ‘IF’ attached to it, and that’s if the provider is content that you will be able to afford a multi-car payment. So the answer to this depends heavily on your affordability check (which may include a credit check) and eligibility to prove that you can keep up with monthly multi-car subscriptions.

 

If you are able to satisfy this, then a multi-car subscription could prove to be a viable option that helps to appease a range of lifestyles within a household. You could very well subscribe to a family-friendly estate or SUV to use during the weekdays, while hopping into a short-term subscription convertible to enjoy a weekend away in the countryside.

 

One potential drawback of this is the amount of paperwork involved. If you change your car often, or have multiple cars at the same time, you’ll need to regularly check and change the residential parking permits attached to your vehicles. Many boroughs in the UK also only offer residential parking permits for a minimum of three months at a time, which could prove to be slightly inconvenient if you change your subscriptions more frequently than this.

This would seem like a potentially cost-effective means of enjoying a European road-trip in the summer months, while immersing yourself in an all-new car experience, wouldn’t it? 

 

Thankfully, some providers do allow this, but almost all providers will have the conditions (if applicable) listed in a terms and conditions page before you subscribe to a vehicle, so ensure you check this beforehand if you intend to drive it abroad. It’s also wise to plan and provide notice for driving abroad well in advance. 

 

If your provider has mentioned that driving abroad is possible in the terms and conditions, these steps should be followed before you can set off on your adventure: 

• First, you’ll need to gain permission from the provider by informing them of your travel intentions. This can either be done by emailing them or completing a dedicated form, which is usually found on their website. 

• If/when approved, you’ll then be issued with a document known as a “VE103B,” which essentially confirms your eligibility to use the car abroad should any officiators or authorities stop you for verification proof. 

• The final necessity is to ensure that you’re covered by insurance abroad. Most deals should have fully inclusive insurance (be sure to check the small print!) but there will be instances where you may need to pay a fee to expand your cover for EU driving. If your general insurance is independent from your subscription package, your provider may ask you to provide a confirmation document from your insurance company as proof of your approval to drive abroad. 

 

Alongside these points, there is a general checklist of things to find out about before you travel. They are as follows: 

• Breakdown cover: If you’re travelling abroad, the likelihood is that you’ll be covering many miles, often on motorways or quiet roads. A breakdown here could lead to a potentially dangerous situation, especially because you’re in a foreign country and may have difficulty with communication due to language barriers. It’s therefore essential to be protected by overseas breakdown cover. You will either need to ring up the subscription provider to see if you’re already covered, or will need to pay a fee to be covered, or contact your related insurance provider to find out the same. 

• Time limit: In most instances, subscription providers (and their partnering insurance firms) will usually only let you take your subscription vehicle abroad for a finite number of days in a year. Normally, this is around 30 days. Some providers will also allow you to split your drive abroad allowance, so you can do multiple trips. Let’s say you’re allowed up to 25 days of EU travel during the course of a one-year subscription package; you could do 12 days in one trip and save the other 13 days for a later trip. Remember, refrain from straying beyond your travel abroad time limit cap! 

• Drivers Licence: Making sure you keep your drivers licence on you at all times is essential. Not only would it be a necessity if you were to be stopped by local authorities, but it’s generally good practice to keep a form of ID on you when travelling abroad. It’s also important that the details on your licence are up to date, so details such as your address or date of issue must be correct and updated. 

• International Driving Permit (IDP): While this is a more general point, it’s worth remembering that some countries may require you to also carry an IDP with you upon your travels, which essentially acts as an extension of your standard driving licence. Most often, this will be the case for people who have a traditional paper style driving licence that has been provided in the following places: Gibraltar, Guernsey, Jersey and the Isle of Man. An IDP can be obtained at your local post office. 

• Green Card: Once you’ve been approved of taking your subscription car abroad, your provider will also issue you with a green card that acts as proof of your eligibility to drive it in one of the 47 nations that fall under the ‘Green Card’ System. This includes all EU nations, in addition to Switzerland, Russia, and some countries in both the Middle East and North Africa. This should be kept in the car at all times, alongside any other important car-related documents that you’re expected to carry. 

• UK Sticker: You must have a UK sticker attached to the rear of the car, provided the number plate doesn’t already have one. In past years, you could have a national flag, GB markers or a Euro sign attached to the car, but this has now been changed post-Brexit. 

• Supplementary items: Like the IDP, some countries may require you to carry some supplementary items with you for various reasons, such as weather protection safety. Examples of such items range from spare electrical equipment for your car, such as bulbs, to clothing like reflective jackets, and even warning triangles. Find out the laws surrounding the nation of travel, and if you’re having difficulty finding any, contact your provider for further information. 

Yes, with some providers, you can - and that’s actually one of the main reasons behind the popularity of subscription services, too. While no current provider allows you to pause a subscription midway through a contract, with some providers you do have the option of pausing it at the end of the term.

 

For instance, imagine you’ve got a subscription deal which runs out at the end of the month, and you’re also going away for an extended period of time, but unsure of when you’ll be back. You can simply alert your provider (do so at least 28 days in advance), let them know you will be pausing your subscription at the end of the current deal, and the two parties can then organise a collection date for the car. 

 

This is a useful option to take, since it saves you the hassle of trying to look for a new car, and a new deal, when you do return. By pausing your subscription, you essentially retain the option to pick up where you left off, with the same car and the same deal - provided you were happy with both. Do remember to alert your provider a few days before you intend to resume your subscription, so they have sufficient time to get everything in order.

At the end of your subscription deal, you’ll have three routes to go down: 

1. 1. Continue your subscription with the same car - If you’re happy with the car you’re currently subscribed to, you should be able to choose to continue your deal on a rolling basis or change to a fixed, long-term package. In any instance, be sure to check for any price increases that may be added. However, this option is not guaranteed. 

2. 2. Continuing your subscription, but changing to a new car - Many providers now allow short-term deals with the attractive proposition of regularly changing your car. This means customers can enjoy the experience of trying out various different cars, to see which may be suitable for them as a long-term vehicle of choice. Care by Volvo, for example, allows you to change your subscription car with three months’ notice. Voltric, another electric car subscription provider, offers a change in car every month - albeit at a cost. 

3. 3. Cancel your subscription - If you’re tired of your subscription car, want an alternative mode of transport or have just found a more convenient solution, you can cancel your subscription. Though, there may be a few costs associated, and depending on your contract length and/or type, may need to provide notice quite a while before the end of your term. More inform

This will be defined by one of two characteristics: whether it was a short term deal or a long term one. 

 

If you are on a short term subscription (usually referred to as a rolling/monthly contract), you can cancel your subscription deal early provided you’ve given your provider enough notice. This is usually a minimum of 28 days. If you cancel any sooner than this, you may be hit with a fine, the amount of which will vary from provider to provider. In most cases, you can expect the cancellation fee to amount to the remainder of the month, but it can be slightly less in some circumstances. 

 

If you’re on a fixed term contract (usually lasts for six, 12 or 36 months) you may be asked to pay a cancellation fee if you opt against completing your agreed subscription contract. Like the above point, this would usually amount to the difference still left to be paid. As a result, it may just make more sense, financially, to keep hold of the car for the remaining period.

If you’ve decided to cancel your subscription, the first thing you need to do is make your provider aware of this, so as to avoid any early termination charges or communicative issues. The notice period for cancellation can vary wildly, with some companies happy with one weeks’ notice, while some can ask to be alerted three months in advance. 

 

Once the cancellation has been confirmed, you’ll need to do two things. The first is to confirm a date for collection or return, and the second is to ensure that the car is in a suitable condition for its return. Details of what to do regarding the latter can be found in the next section. Once your allocated courier has collected the subscription car or you have returned it to the specified location, it’s time for you to decide on what vehicle or mobility choice would best suit you next, unless you’ve already decided. 

 

Note: Some providers offer a “cooling off period” of 14 days when you receive your subscription car. During this cooling off period, you may be allowed to cancel your subscription and return your vehicle without incurring any substantial costs. If you’re interested in subscribing to a provider, make sure to ask them if this applies to them or not.

Upon signing your subscription deal, regardless of how long it was for, there will likely be a section which explains that the car should be returned in the same condition it was received in - excluding general wear and tear, as expected. So it is important to ensure that you make good on this agreement if you wish to avoid any excess charges, and if there are any, you’ll be contacted a few weeks after the vehicle has been returned. 

 

When your courier arrives to collect the car, they’ll carry out some precautionary measures to ensure that the car’s condition satisfies the manufacturer's return quality standards, so it would be beneficial for you to ensure you do what you can to establish a swift handover. 

 

Examples of such precautions include:

• Making sure the car has been washed and cleaned on both the inside and outside, just as it was when you took delivery

• Ensuring that the aforementioned ‘general’ wear and tear is just that, and no excessive scratches or damage has been caused

• Returning the fuel reserves or electric range to the amount it was at when delivered, this is usually either half or full capacity

“Damage” can mean a number of things, so it can only really be dealt with on a case by case instance. If you’re referring to general wear and tear, your provider will accept minimal amounts that are associated with having a car on the road for the given period of time that you subscribe for, as explained previously in this article. 

 

If you’re involved in an accident with your subscription car, it works in much the same way as it would with your own vehicle: it depends on the severity of the accident and the terms of your insurance. During your terms and conditions waiver, you would have agreed to a compulsory excess (which generally ranges from £500 to £1,000). You would need to pay this amount if the accumulated damage from the accident is within your compulsory excess band. 

 

In the event that the damage is more severe than this, it falls on the shoulders of your provider (or insurance company) to pay off the damages. During this time, your provider should supply you with a courtesy car, so ensure this is also negotiated in your pre-delivery agreement. 

 

If the car has been stolen, you should immediately call the police, who will provide you with a crime reference number. Proceed to call your provider and insurance firms, stating the crime reference number when requested, in addition to any other details of the theft you can tell them. Most providers will make sure you have either a fully comprehensive or a third-party, fire and theft policy - both of which would have you covered in the event of theft. 

 

In most instances, subscription cars are fitted with a tracking system, similar to an insurance policy black box, which could alert the provider of its location. Whether the car is found or not will also dictate how quickly the process is complete, but provided you have the right type of insurance, you shouldn’t have too much to worry about. Your provider may supply you with a courtesy car should this happen, but further details about the length of the courtesy car would be subject to, as mentioned previously, a case by case basis. 

Some companies that require cars as part of their services may look to subscription providers as a short to long-term solution. Some companies even offer “company car” incentives to employees as a job perk. 

 

In this instance, employers would normally look at subscribing to a car to either support their fleet or provide to an individual employee from anywhere between 28 days to three years. Essentially, there are three types of company car schemes that businesses normally run: Company Car Allowance, Employee Salary Sacrifice Scheme and Company-owned Cars.

 

We will explain this in more detail in a separate article.

A non-affiliated car subscription provider is a brand that isn’t tied down to a single/group of manufacturer(s) or vehicle types (e.g. electric only). The advantage of this is that they offer a wider spectrum of cars to choose from, and therefore you have more scope to choose from and experience. 

 

If, for instance, you opt to choose a manufacturer to subscribe with, you’re only going to be able to choose from its finite range of cars. If you opt to choose a non-affiliated car subscription provider, such as Mycardirect, you won’t have this issue. 

 

Ultimately, it comes down to preference. If you like a particular brand and are happy to stay with them throughout the course of your subscription period, you may struggle to find that brand or particular car that you have your eye on with a non-affiliated car subscription provider. The flip side of this is that you’ll have more cars to choose from with a non-affiliated provider, which could be an inviting change.

Over the last few years, a number of manufacturers have begun to offer subscription services for their range of cars, further adding to the growing number of independent providers. And with the increased demand for short-term car solutions, packaged deals that run anywhere from a single month to a multi-year deal are now available. 

 

Below, we run through and compare each manufacturer that currently offers subscriptions, before doing the same for independent providers that are also on the market, in alphabetical order. We look at the true meaning of “all-inclusive” packages, and provide tables that could help you decide which company may be best suited to your needs.

 

Karfu take reasonable efforts to ensure that the contents of its website(s) are accurate, all information and pricing was correct at time of writing, being 8 November 2022. While every effort has been made to ensure the accuracy and completeness of the content below, no warranty or fitness is provided or implied, and Karfu shall have neither liability nor responsibility to any person or entity with respect to any loss or damage arising from this article's use. Karfu, may change web content at any time without notice, and we also include links to third party websites. These links are used to provide further information and are not intended as an endorsement of such websites and/or their content.

 

Manufacturers: 

 

Flexibility by Genesis

The luxury sister company of South Korean brand Hyundai, Genesis is still relatively unknown in the UK - but it’s looking to change that. It prides itself on offering high levels of customer service, and looks to kick-off in Europe by offering cars like the G70, a direct competitor to the continuously successful BMW 3 Series and the Mercedes-Benz C-class. 

Genesis also states that all of its subscription offerings are brand new cars, and as a result, a minimum term of six months must be penned in order to complete your deal. All associated costs, like breakdown cover or road tax will be covered under the umbrella cost. However, insurance cover is an optional extra, or alternatively, you can organise your own insurance cover. 

Example: Genesis G70 ‘Shooting Brake’ Sport Line at £650 per month on a 18 month deal

 

Genesis’ subscription policy: 

Monthly subscription	Minimum term 6 months
Insurance cover	Optional extra: quote retrieved by filling in this form, and will vary in price depending on geography, age and driving history
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	Varies (subject to credit check/ underwriters)
Delivery charge	Free in mainland UK
Car switch	Every 6 months

 

 

Mocean by Hyundai

With a subscription contingent that consists of over 20 cars, Hyundai does not lack for variety, but the current exclusion of the electric IONIQ 5 is a bit of a shame. Despite this, you can still choose from a number of city cars, like the i10, or even a sporty alternative in the i30 N LINE, right up to the all-electric family-friendly KONA Premium. 

While Hyundai does state it offers an “all-inclusive” subscription, insurance is not offered in the base price and must be bolted onto the monthly package as an optional extra - and also varies in price depending on which age bracket a customer qualifies for. Insurance on the cheapest subscription car currently available, the i10 SE Connect, would be £93 per month for those aged between 25 and 29. This decreases to £48 per month for those over 65. 

Example: Hyundai IONIQ ‘Hybrid Premium’ at £549 per month on a 3 month deal

 

Mocean’s subscription policy: 

Monthly subscription	Minimum term 3 months
Insurance cover	Optional extra   Example of cost as per Hyundai Mocean website: IONIQ Hybrid will cost £93 per month to insure for those between 25-29 years of age
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	Varies (subject to credit check/ underwriters)
Delivery charge	Free collection.    If delivery, £50 for first 50 miles, thereafter £1 per mile for exceeding amount
Car switch	Every 6 months

 

 

Pivotal by Jaguar Land Rover

2023 would mark 10 years since parent company Tata Motors oversaw the partnership between Jaguar and Land Rover - and it’s seemingly worked well for both parties. Not only has it allowed two coveted brands to remain afloat and continue to grow, but JLR was also the first car manufacturer in the UK to offer subscription services (Pivotal was originally named Carpe). Not only that, but JLR is also the only British manufacturer that offers subscription, and is the only manufacturer who offers a ‘true’ all-inclusive subscription, since insurance is always included. 

The way its subscription packages are offered is slightly different to other manufacturers. Instead of choosing a car to begin with and structuring your package accordingly, you pick one of four “tier” levels: Blue, Indigo, Violet or Ultraviolet. Each has a set price, beginning with £850 per month with Blue, and scaling up to £2,000 per month with Ultraviolet, and each tier also has a number of either Jaguar or Land Rover models that you can choose from. The tier levels are set apart by the range of models and trim grades available, as well as the amount of technology and options they come with. 

Example 1 (Blue): Jaguar F-Pace ‘R-Dynamic HSE’ at £850 per month on a 3 month deal

Example 2 (Violet): Land Rover Defender 110 ‘X-Dynamic’ at £1,550 per month on a 3 month deal    

 

Pivotal’s subscription policy: 

Monthly subscription	Minimum term 3 months
Insurance cover	Yes
Mileage allowance	1,500+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£550 joining fee
Delivery charge	Free
Car switch	Every 6 months

 

 

Care by Volvo

Volvo is a brand that has developed a stern, dependable reputation in the UK, something that stems from the Swedish brand offering a range of cars that sport some of the highest safety rating standards of any manufacturer in the world. Interested customers have no shortage of cars to choose from, ranging from Plug-in Hybrid estates, such as the V60, to all-electric SUVs in the form of the XC40 Recharge. 

Once you’ve settled on a model that best suits your interests, you can pick a package deal that works for you. The minimum term duration is 3 months, with the cheapest car on offer currently being the XC40 mild hybrid at £599 on a 3 month contract, or £499 for a fixed 36 month deal. 

Example: Volvo V90 Cross Country ‘Mild Hybrid’ at £979 per month on a 3 month deal

 

Volvo’s subscription policy: 

Monthly subscription	Minimum term 3 months
Insurance cover	7 days complimentary included. Thereafter, optional extra.    Example of cost as per Volvo Care website: an indicative quote for a 40 year old who has held a Full UK licence for over 5 years with 4 years No Claims Bonus living in Guildford, Surrey driving a XC40 T3, would be £65.22 per month
Mileage allowance	500+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	No
Delivery charge	Free
Car switch	Every 3 months

 

 

Independent providers: 

 

Cocoon

Derbyshire-based Cocoon Vehicles Ltd offers both subscription services as well as short-term lease agreements and, unlike most digital providers, has a physical store where over 200 cars are located. While there are one-month deals available, the longer you subscribe for, the cheaper your monthly subscription quote becomes. In this regard, Cocoon is similar to many other providers.

Example: Mercedes-Benz CLA 180 Shooting Brake ‘AMG Line Premium’ at £899 per month on a 3 month deal

 

Cocoon’s subscription policy: 

Monthly subscription	Most vehicles 3 months minimum commitment
Insurance cover	No
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£550 joining fee
Delivery charge	Free
Car switch	Every 6 months

 

Drive Car Flex

Family-run Drive Car Flex is located in Yorkshire, and offers a month-to-month car arrangement with most of its stock either new or nearly new. You can also cancel your subscription with just five working days notice, which is among the shortest notice periods of any provider currently. It’s a subsidiary company of the aforementioned Cocoon Vehicles, but since it’s based in the North of England, it only delivers to certain areas for free - the full list of which can be found by clicking here. 

Example: Audi A3 Sportback ‘35 TFSI S-line’ at £899 (+VAT) per month on a 1 month deal 

 

Drive Car Flex’s subscription policy: 

Monthly subscription	Yes
Insurance cover	No
Mileage allowance	500+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	Varies (subject to credit check/underwriters)
Delivery charge	Free if minimum commitment of 3 months is agreed, otherwise variable delivery charge applicable, based on how far you are
Car switch	Every month, after initial 3 month period

 

Elmo

Backed by BCA (who own Cinch and WeBuyAnyCar), elmo is one of a handful of providers that only offers electric cars. So, not only will you be contributing to sustainability and being environmentally conscious, but you will also be able to explore a diverse range of electric cars. This is ideal for someone who has yet to experience life with an electric car, and could help to quash any number of scepticisms that they may have e.g. range anxiety. 

Example: Honda-e ‘Advance 36kWh’ at £529 per month on a 1 month deal

 

Elmo’s subscription policy: 

Monthly subscription	Minimum 2 months subscription term
Insurance cover	Yes
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	No
Delivery charge	£119 for England/Wales.    Scotland will be higher and subject to distance (which will be calculated for you when filling in the subscription form)
Car switch	Every month

 

Evogo

Evogo is a Sheffield-based subscription provider that offers a minimum term of 89 days across a range of different makes and models. Despite having “Ev” as part of its name, Evogo does not purely deal with electric cars. Evogo also offers commercial vehicles, something that’s fairly uncommon among subscription providers, in addition to the usual offerings that span compact city cars right through to SUVs. 

Example: Volkswagen Arteon Shooting Brake ‘TSI eHybrid R-Line’ at £840 per month on a 3 month deal

 

Evogo’s subscription policy: 

Monthly subscription	Minimum 89 days commitment
Insurance cover	No
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	1.5x the monthly rental fee of a car
Delivery charge	Collection (Sheffield) or delivery at 75p per mile
Car switch	Every 6 months

 

Ezoo

Formerly known as Electric Zoo, the electric car subscription provider has dozens of options available to choose from, while providing fully comprehensive insurance with a £1,000 excess as part of its subscription package. Formed in 2012, Ezoo aims to raise awareness about, and educate, consumers about the switch to electric. Several models that aren’t easily found on competitor sites are also provided by Ezoo, such as the Mercedes-Benz EQA 250 and the Hyundai IONIQ 5, making it a tempting choice to subscribe with.

Example: Mini Electric Cooper S ‘L1’ at £599 per month on a 1 month deal

 

Electric Zoo’s subscription policy: 

Monthly subscription	Yes
Insurance cover	Yes
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£120 admin fee
Delivery charge	Collection free, or £1.80 per mile
Car switch	Every month (subject to contract term ending)

 

FlexiDrive

‘FlexiDrive’ is an extension of the ‘Car Lease and Go’ brand, and offers both cars and vans for both individuals and businesses, while also claiming to offer subscription deals for those with a bad credit history. FlexiDrive also says all of its cars are completely brand new, and delivered to you directly from the manufacturer. While they do offer monthly subscriptions, the minimum initial term is six months, with most that broker a deal with FlexiDrive encouraged to confirm a package for at least one year. This is also why the mileage limit has an annual cap, and not a monthly one. 

Example: Skoda Octavia ‘SE Technology’ Estate at £479 (+VAT) per month on a 6 month deal

 

FlexiDrive’s subscription policy: 

Monthly subscription	Minimum 6 months commitment
Insurance cover	No
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	Deposit fee variable, includes first month's payment
Delivery charge	Free
Car switch	Every 6 months

 

FlexiGo

The second provider that falls under the Cocoon group umbrella, is FlexiGo. Like Drive Car Flex, it too offers subscription vehicles from a single month. However, most deals work out best if you sign-up for a minimum of three months, and you’ll also need to have a fully comprehensive insurance policy in place before taking delivery of your car. Offerings range from an economical 1.0-litre Nissan Micra hatchback to the controversially styled G80 M3 sports saloon from BMW. 

Example: Mercedes-Benz EQC 400 300kW ‘AMG Line’ at £1,450 (+VAT) per month on a 3 month deal

 

FlexiGo’s subscription policy: 

Monthly subscription	Most vehicles 3 months minimum commitment
Insurance cover	No
Mileage allowance	800+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	Varies (subject to credit check/underwriters)
Delivery charge	Free if subscribing for over 3 months, otherwise variable charges apply
Car switch	Every 6 months

 

Hiyacar

Hiyacar is one of the newest providers to enter the subscription arena. It offers all-inclusive packages for several superminis, with comrepehansive insurance included, it also offers unlimited mileage as part of its deal - something that's still a rarity in the UK - and even allows subscribers to add a second driver to their deal for free. In addition to this, Hiyacar uniquely allows you to re-rent the car out to other people during your subscription deal. Hiyacar says this could save you up to 60 percent on your monthly costs towards subscription, which could amount to as much as £300 per month. 

Example: Seat Ibiza (2021, Manual) at £499 per month on a 1 month deal

 

Hiyacar's subscription policy: 

Monthly subscription	Yes
Insurance cover	Yes
Mileage allowance	1,000+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£500 refundable deposit
Delivery charge	Varies (Dealer dependant)
Car switch	Every month

 

Karzoom

Based in Manchester, Karzoom makes deliveries possible around the UK via its network of partners - examples of which include Hendy (South Coast) and Perry's (Lancashire, Derbyshire and South Yorkshire). It's also one of the subscription providers that offers insurance as part of its subscription packages, and with minimum terms of one month, Karzoom provides a great opportunity for a short-term car solution. You can find cars of all class types, including superminis to medium and large SUVs, so whatever your requirement, Karzoom has multiple options to choose from.

Example: Mazda 2 at £527 per month on a 3 month deal 

 

Karzoom’s subscription policy: 

Monthly subscription	Yes
Insurance cover	Yes
Mileage allowance	1,000+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£500 refundable deposit
Delivery charge	Varies (Dealer dependant)
Car switch	Every month

 

LeasePlan

Lease plan offers a mix between both individual and commercial vehicles - and is perfectly tailored for the latter, since it offers flexible deals with mileage options of up to 2,500 miles in some instances. Its individual options include several less common options, including the DS 7 Crossback, the MG MG5 Estate and the Suzuki Swift. Currently, Lease Plan also currently offers a £50 discount voucher that can be applied to your 1st subscription deal. 

Example: Cupra Born 58kW ‘V1’ Electric at £978 per month on a 1 month deal 

 

Lease plan’s subscription policy: 

Monthly subscription	Yes
Insurance cover	No
Mileage allowance	Flexible (up to 2,500 p/m)
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	No
Delivery charge	£199
Car switch	Every 3 months

 

MyCarDirect

With a monthly deal starting from £521 for one of its Superminis, and premium cars like a Range Rover Sport ‘SVR’ or a Mercedes-Benz G Wagon ‘G63’ available on the higher-end of the scale, MyCarDirect certainly offers breadth. A one-time joining fee of £250 allows you to pause your subscription whenever you need to, resuming at a later date that suits you. Monthly mileage caps also begin at 1,000, which can be considered among the more generous subscription amounts offered as standard among UK providers. 

Example: Tesla Model 3 ‘Long Range’ at £1,388 per month on a 1 month deal

 

MyCarDirect’s subscription policy: 

Monthly subscription	Yes
Insurance cover	No
Mileage allowance	1,000+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£250 joining fee (one-time payment), variable deposit that's refundable, 1st month fee
Delivery charge	Free
Car switch	Every month

 

Onto

Chances are you’ve heard of Onto - such has been the dramatic rise in its advertising of late. The Warwick-based all-electric subscription provider was formed in 2018, and has since gone on to amass “more than 6,000 active subscribers” as it aims to be a leader in the subscription industry as the electric revolution progresses. Onto also remains true to the ‘all-inclusive’ term by offering insurance as part of its packaged deals, and with over 20 electric cars to choose from, Onto offers a great chance to experience the EV lifestyle - one month at a time. 

Example: DS 3 Crossback E-Tense ‘Ultra Prestige’ at £569 per month on a 1 month deal

 

Onto’s subscription policy: 

Monthly subscription	Yes
Insurance cover	Yes
Mileage allowance	750+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	No
Delivery charge	£99.50
Car switch	Every month

 

Sixt+

Sixt is another company that you will most likely have heard of before, and has long been associated with rental options. However, it has also started to offer subscription deals, with insurance also included in its all-inclusive packages. You’ll also need to pay a £249 one-time joining fee, which allows you to pause and continue your subscription when needed (subject to monthly agreements). Unfortunately, you will need to collect your subscription car at a Sixt warehouse. Fortunately, there are plenty of those scattered around the country, so the chances are, you won’t have to travel too far. 

Example: Skoda Superb ‘Hatch SE’ at £779 per month on a 1 month deal

 

Sixt’s subscription policy: 

Monthly subscription	Yes
Insurance cover	Yes
Mileage allowance	300+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£249 joining fee (one-time), plus first month cost
Delivery charge	Collection only (Multiple locations)
Car switch	Every month

 

Voltric

Voltric is another all-electric car subscription provider that’s looking to help the nation transition into the carbon neutral era, with five models currently on offer. A 1,000 mileage cap per month, in tandem with included insurance cover, may just be two of the reasons as to why Its subscription offers are currently in such high demand

Example: BMW i3 ‘42.2kWh’ at £568 per month on a 1 month deal

 

Voltric’s subscription policy: 

Monthly subscription	Yes
Insurance cover	Yes
Mileage allowance	1,000+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	£110 sign-up fee
Delivery charge	Free for first vehicle
Car switch	Every month

 

Wagonex

Wagonex started out in the Shoreditch area of East London, and has since expanded to Cardiff, Wales. It offers a wide range of cars, including hatchbacks, estates and SUVs for individuals, and commercial vehicles for business’. Additionally, Wagonex is another one of the UK’s few providers that offers true ‘all-inclusive’ subscription, and offers free delivery within 50 miles of one of its warehouses. 

Example: Mini Cooper ‘Classic’ 5 door Hatchback at £943 on a 1 month deal

 

Wagonex’s subscription policy: 

Monthly subscription	Yes
Insurance cover	Yes
Mileage allowance	750+ miles p/m
Breakdown cover	Yes
Maintenance and servicing	Yes
Road tax	Yes
Offer electric cars	Yes
Deposit	Varies (depending on the car)
Delivery charge	Free within 50 mile radius
Car switch	Every month

 

The vehicle and mobility landscape is almost constantly changing and expanding, so it's only natural that the way you access those options will also diversify. Subscription is an emerging means of doing just that. Below, we compare subscription services to three of its most prominent alternatives: Hire Purchase (HP), Personal Contract Purchase (PCP) and Personal Contract Hire (PCH), more commonly known as Leasing.

HP, otherwise known as Hire Purchase, is a means of financing a car by paying a large deposit, followed by pre-agreed monthly instalments across several years. At the end of the agreement, you’ll then own the car. There are several key key distinctions between a subscription deal and a HP one, and they are as follows:

• Contract duration: Subscriptions are considered short-term solutions, normally lasting from one to three months, but sometimes rolling on for a minimum of six months to three years. Hire purchase deals can, in some cases, continue for as many as seven years. 

• Insurance: Insurance is a grey area for subscription services, since some providers offer it as part of their ‘all-inclusive’ package, while others ask you to either bolt a comprehensive policy on as an add-on or ask you to find a policy yourself. HP deals are more clear, with almost all providers requiring you to find your own insurance policy for your agreed vehicle before taking delivery of it. 

• Breakdown cover: Breakdown cover will be provided when you’re on a subscription deal, but not on a HP agreement. 

• Maintenance and servicing: Maintenance and servicing will be covered by your subscription provider, but will not be on a HP deal. 

• Road tax: Road tax will be covered by your subscription provider, but will not be on a HP deal. 

• Vehicle swaps: Subscription deals are often lauded for the convenience of how often you can swap your car, which is perfect for those that like to try new vehicles often. On a HP deal, you will not be allowed to swap your car since you’re essentially paying to own that particular vehicle over the long-term. 

• New car deal: With a subscription deal, the chances are you’ll be subscribing to a new or almost new car that’s either low mileage or within a certain age (six to 12 months). If you opt for a HP deal, you’ll always have the option of buying a new car. Additionally, you’ll be able to spec your car exactly the way you want to, where with subscription you’re likely to be provided with a few variations and trims of the car you want, and then be asked to choose which you like best. 

• Retain car: Subscription will never result in you owning the car, since you’re only paying for usership, not ownership. With HP deals, on the other hand, you are paying for usership with the option of ownership at the end of the deal. 

• Depreciation considerations: Subscription costs will not involve depreciation fees, so that worry remains entirely with the provider. You will, however, need to worry about this if you’re buying a car on HP. Since a fixed monthly payment and bulk deposit are all agreed beforehand, and the deal is likely to span several years, your car is unlikely to be worth the same value that it was when you received it. 

• Mileage allowance: Subscription services commonly issue ‘monthly’ mileage caps, which usually hover around the 800-mile mark. This means it’s easy for you to keep track of how many miles you’re travelling each month. With HP, you’ll likely be given an ‘annual’ allowance - which could be subject to change at your request. 

• Cancellation notice flexibility: Another facet to the growing popularity of subscription services is the short amount of notice required to cancel a deal, with most providers allowing cancellation with 30 days notice. HP deals are a little trickier, since you’ve essentially agreed to a long-term contract where you intend on owning the car after the given contract is completed. In some instances, you can get out of a HP deal, but you may be facing a hefty termination fee as a result. 

Personal Contract Purchase (PCP) deals are common, with around 82 percent of all new cars on UK roads being purchased using this type of contract. It’s a finance deal that helps you secure a new car, with a detailed explanation of it being found here. There are several distinctions between a subscription deal and a PCP agreement, and they are as follows:

• Contract duration: Subscriptions are considered short-term solutions, normally lasting from one to three months, but sometimes rolling on for a minimum of six months to three years. PCP deals usually last between two and five years. 

• Insurance: Insurance is a grey area for subscription services, since some providers offer it as part of their ‘all-inclusive’ package, while others ask you to either bolt a comprehensive policy on as an add-on or ask you to find a policy yourself. PCP deals are more clear, with almost all providers requiring you to find your own insurance policy for your agreed vehicle before taking delivery of it. 

• Breakdown cover: Breakdown cover will be provided when you’re on a subscription deal, but normally not with a PCP deal. It depends on the manufacturer/provider in question, and in the rare instance that it is offered, it will typically only be available for new cars. 

• Maintenance and servicing: Maintenance and servicing will be covered by your subscription provider, but generally will not be on a PCP deal. 

• Road tax: Road tax will be covered by your subscription provider but generally will not be on a PCP deal. 

• Vehicle swaps: Subscription deals are often lauded for the convenience of how often you can swap your car, which is perfect for those that like to try new vehicles often. On a PCP agreement, you will only be allowed to change your car at the end of your contract period, if you choose to do so. 

• New car deal: With a subscription deal, the chances are you’ll be subscribing to an almost new car that’s either low mileage or within a certain age (six to 12 months). This works similarly to a PCP agreement, where you’ll often be provided with a selection of brand new cars, nearly new cars that would have low mileage (predominantly showroom accrued), or cars that are several months to one year old. 

• Retain car: Subscription will never result in you owning the car, since you’re only paying for usership, not ownership. If you decide to pay the ‘big’ final instalment of your PCP deal at the end of the term, you will gain full ownership of the car, but until this point you will not own the vehicle.

• Depreciation considerations: Subscription costs will not involve depreciation fees, so that worry remains entirely with the provider. Where PCP is concerned, depreciation is accounted for when a monthly payment plan is created, so while it is included in the deal, you don’t necessarily need to worry about an additional cost to cover for this. This is a more complex topic however, that we have covered in a separate article.

• Mileage allowance: Subscription services commonly issue ‘monthly’ mileage caps, which usually hover around the 800-mile mark. This means it’s easy for you to keep track of how many miles you’re travelling each month. With a PCP agreement, you could be given an ‘annual’ allowance - which may be subject to change at your request. 

• Cancellation notice flexibility: Another facet to the growing popularity of subscription services is the short amount of notice required to cancel a deal, with most providers allowing cancellation with 30 days notice. PCP deals are a little trickier, since you’ve essentially agreed to a long-term usership/ownership contract. In some instances, you can get out of a PCP deal, but you may be facing a hefty termination fee as a result. You can find out more about this by clicking here. 

Otherwise known as PCH (Personal Contract Hire), leasing is a form of long-term usership, where you pay a non-refundable ‘initial rental’ fee, and follow it up with monthly payments over the course of a few years. After the contract length is over, you’ll then return the car and opt to take out a new lease agreement or look at other access options. There are several key key distinctions between a subscription deal and a Lease, and they are as follows:

• Contract duration: Subscriptions are considered short-term solutions, normally lasting from one to three months, but sometimes rolling on for a minimum of six months to three years. Lease deals can continue from as many as one to four years. 

• Insurance: Insurance is a grey area for subscription services, since some providers offer it as part of their ‘all-inclusive’ package, while others ask you to either bolt a comprehensive policy on as an add-on or ask you to find a policy yourself. Lease deals are more clear, with almost all providers requiring you to find your own insurance policy for your agreed vehicle before taking delivery of it. 

• Breakdown cover: Breakdown cover will be provided when you’re on a subscription deal, and could also be on a lease agreement. You’ll often have the option to customise your lease package with added features and conveniences, with breakdown cover being one of them. This will, naturally, increase your monthly amount. 

• Maintenance and servicing: Maintenance and servicing will be covered by your subscription provider, and could also be on a lease agreement. You’ll often have the option to customise your lease package with added features and conveniences, with maintenance and servicing being one of them. This will, naturally, increase your monthly amount, but you will often need to enquire for pricing as this is rarely listed online 

• Road tax: Road tax will be covered by your subscription provider, and could also be on a lease agreement. You’ll often have the option to customise your lease package with added features and conveniences, with road tax being one of them. This will, naturally, increase your monthly amount. 

• Vehicle swaps: Subscription deals are often lauded for the convenience of how often you can swap your car, which is perfect for those that like to try new vehicles often. On a Lease agreement, you will not be allowed to swap your car since you’re essentially paying for long-term usership of that particular car. 

• New car deal: With a subscription deal, the chances are you’ll be subscribing to an almost new car that’s either low mileage or within a certain age (six to 12 months). With a lease deal, you’re more often than not going to be provided with a brand new car, rather than one that’s nearly new. Being given a nearly new or used car is uncommon in the leasing world. 

• Retain car: A subscription deal won’t result in you owning the car, since you’re only paying for usership, not ownership. It works the same way with a Lease, since you won’t be keeping the car at the end of your contract agreement. 

• Depreciation considerations: Subscription costs will not involve depreciation fees, so that worry remains entirely with the provider. Likewise, with a lease deal, you’ll not have to worry about the depreciation costs associated, since this is accounted for by your provider at the start of your agreement. 

• Mileage allowance: Subscription services commonly issue ‘monthly’ mileage caps, which usually hover around the 800-mile mark. This means it’s easy for you to keep track of how many miles you’re travelling each month. With a Lease agreement, you could be given an ‘annual’ allowance - which may be subject to change at your request. 

• Cancellation notice flexibility: Another facet to the growing popularity of subscription services is the short amount of notice required to cancel a deal, with most providers allowing cancellation with one months’ notice. Remember, the duration of one month can vary between providers! Lease deals are a little trickier, since you’ve essentially agreed to a long-term usership contract. In some instances, you can get out of a Lease deal, but you may be facing a hefty termination fee as a result. 

Is it really all-inclusive?

1. Some providers will advertise their deals as ‘all-inclusive’ and, to most people, this usually translates into an all-in-one payment package. That includes things like insurance, maintenance and tax, but some providers will sneakily state in their terms and conditions that one (or more) of these facets do not form a part of the contract. It’s also crucial to know what your insurance excess is, whether you’re covered by the provider or through an independent insurance firm. On a short-term contract, excess could be very high in the case of an accident, and is often charged for each individual incident. Be aware of this.
2.  

Stick to your mileage cap

3. Subscription providers are almost always extremely strict with their mileage cap allowance, and straying above that monthly amount will result in a fee. This amount can range from 25p to as much as £1.25 per mile. It doesn’t sound like much to begin with, but it can add up to an unpleasant figure very quickly. If you realise you’re going to need a higher mileage cap every month, talk to your provider to adjust your package accordingly to avoid these charges. 

4.  

Delivery times aren’t set in stone

4. Most providers will say that their vehicles are normally delivered within a finite window, but in small print, it’s often stated that these time frames are subject to change. You should bear this in mind if you’re planning to subscribe to a car, and are in need of it immediately. 

5.  

Take plenty of photos upon delivery/collection 

5. In the unfortunate event that a provider has accused you of a fault with the car that you are sure you didn’t do, ensure you have plenty of photo evidence from delivery and collection days. You don’t want to get into a legal dispute with the provider, to only then not have supporting evidence to back your claim. 
6.  

Fines, tickets and penalties are on you

6. As obvious as it sounds, any fines, tickets, or penalty fees that culminated during your subscription period must be paid by you, since it was not the provider’s fault. It’s also important to remember that these must be paid on time, with the fee amount often halved if it’s paid within 14 days from the date that the letter was sent out. 

7.  

Be completely satisfied with your terms and conditions

1. This is probably the most significant element to consider before progressing with a subscription deal. Do not agree to something that you’re not 100 percent satisfied with, because you’ll not only be wasting your own money, but being unaware of all the conditions and potential loopholes could result in a fine. 

There’s no doubt that customers have never before had such a great variety of ways to access a vehicle, and subscription services are one of the primary reasons for that. Automotive News Europe recently published a report stating that, by 2025, automakers and analysts predict that between 20-30 percent of new cars being sold will be through a subscription. Considering car subscription services did not exist until 2017, that would be a significant shift in how people access cars in the future if it is accurate.

 

Amidst the cost of living crisis that’s seemingly showing no immediate signs of slowing down (or reversing altogether, preferably), the question of whether you actually need to own a car is becoming a big one. With the COVID-19 pandemic giving rise to a ‘work from home’ culture, and an explosion of access types over the last few years to work alongside the growing list of mobility options, usership over ownership may become a popular staple in society as we move forward.

Subscription deals offer another option for vehicle access to those that don’t necessarily want to own a car and prefer to use it only for a period of time. The offer of an all-inclusive package to reduce the number of payments that need to be managed by customers, in addition to the ability to trial a range of cars to see what suits your needs does seem an attractive proposition. 

 

It’s always wise to go through each provider that exists, to ensure you understand which company offers a car you’re happy to subscribe to, with a package that suits your requirements, and a terms and conditions list that you’re content with. Remember to check for any loopholes or discrepancies that may exist in a provider’s clauses, since you want to avoid any additional fines or penalties on top of your monthly fee. Once these are all understood and you’re happy to go ahead with a subscription package, you’ll have a range of cars to choose from and a number of providers to agree a deal with. 

 

While subscriptions can still be deemed relatively high cost, it’s worth remembering that you’re paying for a) convenience and b) packaged costs so you don’t need to worry about several different payments. And if the market continues to develop and grow, we could see even more providers entering the fray, which could drive subscription prices down for customers in the process. 

 

We hope you’ve found this all-inclusive Karfu guide helpful - no pun intended. Leave a comment below if there are any other queries you may have about car subscription. 

Additionally, why not sign-up for our waitlist, to be one of the first to know about us as we head closer to our official launch?