When it comes to choosing a car, understanding the different makes and models is always difficult. Then when it comes to financing the vehicle there are so many options from leasing to Personal Contract Purchase (PCP) to traditional finance such as Hire Purchase (HP) but in the world where “You’ll Own Nothing and Be Happy” car subscriptions may be the way forward.
What is a Car Subscription?
Imagine a scheme where you can pick your car from the make, model to even the colour. You then pay one monthly payment that covers all the essentials of any car ownership including the rental, maintenance & servicing, road fund licence and breakdown assistance. Opt for a new car and you get the benefit of a manufacturers warranty.
As this is a subscription you don’t have to tie into any long-term contracts and you can literally swap it based on the terms of your contract, so if you see a nicer car available or you fancy something like a convertible for the summer, just make the call to the vehicle subscription provider and they will arrange everything for you.
What are the pro’s of a vehicle subscription?
There are lots of positives to taking a car subscription, here are a few of our favourites:
- Quick Delivery: Most car subscription providers have physical stock vehicles which can be delivered within a week once everything is in place, allowing you to take a car very quickly and getting you on the road.
- Access to latest vehicles: Subscription providers run some of the latest cars available in the marketplace, allowing you to drive the very best models and with the latest tech.
- One monthly fee: Make one payment that covers all the essentials such as maintenance, road tax, breakdown assistance, servicing and rental. All you need to do is add fuel (or charge) and insure the vehicle.
- Low initial outlay: With most car subscriptions, you only need to pay the 1st months rental, processing or joining fee and in some circumstances a security deposit. Whereas a PCP or car lease you need to usually find a bit more money.
- Low Credit Scores Accepted: With some vehicle subscription providers, you don’t need a high credit score to get a car subscription. Another positive is that most don’t report the subscription to credit reference agencies as it isn’t a permanent lease, so if you are looking at getting a mortgage soon a vehicle subscription could be a huge positive.
- Ability to swap cars: If you get bored easily or you want to drive the latest cars, then a car subscription allows you to change your vehicle on a more regular basis, drive an SUV in the winter and something sporty in the summer.
- Pause your subscription: If things get a little tighter on the purse, then opt to send your car back. As this is a flexible solution, you can send the car back without any early termination fees. Whereas a traditional car lease you’d have to pay quite a bit out, with a PCP you’ve got to hope you’re the right side of the finance.
What are the con’s of a car subscription?
With everything, where there is a positive, there has got to be some downsides, here are a few of the things we’ve picked up:
- Admin Fees: If you are prone to getting parking tickets then you need to be aware of any administration charges that you may have to pay on top of the parking ticket itself. Afterall, you wouldn’t work for free would you?
- Mileage limits: All car subscriptions (and car leases/PCP’s) have mileage restrictions. When choosing your car make sure that you choose a mileage that suits your requirements or you could end up with a big excess mileage bill when the car is sent back/
- Damage: You need to look after your car when it is taken on a vehicle subscription, providers have set conditions on what is acceptable. Don’t forget if you catch your alloy on the curb, this is negligence not wear and tear.
- Joining Fees/Documentation Charges: Some companies charge a joining fee, processing fees or documentation charges. Some use this to cover items such as logistics, others use the fees to bring down the monthly cost. Just make sure you factor this into the overall cost.
- You’ll never own the car: Just like renting a house, you’ll never own the vehicle. You are just borrowing it from the timeframe you need it for. Of course, this can also be seen as a benefit as you lose the hassle of servicing it and trying to sell it.
- Car might not be new: Might not bother you that someone has had the car before, but some companies only offer used cars, some offer brand spanking new cars. Just ask the question before signing on the dotted line.
- You may never buy again: Once you’ve had a car subscription and witness the flexibility and how it fits into your budget and life, you might not ever want to own or lease a car again. Is this a negative?
How do I get a car subscription?
By giving a quick search on Google or Bing for ‘Car Subscriptions” will bring you a range of vehicle providers who offer car subscriptions in the UK, our top tip is avoid the adverts and try and use a compare service to find out the pro’s and con’s of each company.
Sometimes bigger isn’t better, don’t dismiss those smaller companies. Rates might be higher in some cases, but those with the lower rates may have hidden processing charges. Also some of the subscription firms with the unbelievable rates have actually gone bust and left customers without cars.
Most require applications online, some require you to send ID and documents, others may ask you to do an online verification service to prove who you are and that you can afford the car.
Car Subscriptions – The Future
Car Subscriptions have been around for a long time, it is just the latest buzzword for a flexible car lease or long-term car rental, if you don’t mind paying per month for a car and never own it, this could be right up your street.
For a service to allow you to change your car on a regular basis and to keep in with the latest trends, car subscriptions are a major plus. It allows you to stay ‘on point’ and can fit in with most lifestyles.
They are also ideal to try out the latest cars, whether you want to dip your toe in the water with an electric vehicle or you just fancy driving around in a convertible for the summer. Subscriptions should not be dismissed.
Cocoon Vehicles
Cocoon Vehicles is no stranger to flexible car subscriptions, since 2007 they have been looking after personal and business customers with a wide range of cars from Audi, BMW, Mercedes-Benz, Land Rover, Volkswagen and Volvo.
The process with Cocoon is pretty straight forwards and they offer delivery of in-stock cars in 3-5 working days from the date of order. Family-owned, they are no stranger to providing the best possible customer service with lots of 5-star Google reviews.
Find out more about how Car Subscriptions can fit into your lifestyle by calling them on 01332 290173 or visiting https://cocoonvehicles.co.uk/car-subscriptions/
