Almost half (49%) of its UK customers would be interested in making that payment choice when choosing their next vehicle.
This is most common in younger drivers looking for alternatives to car finance and buying a vehicle outright, PwC data shows.
Further, 44% of motorists looking for a car in the next five years would opt for a car subscription over a purchase or lease option.
A car subscription can range anywhere from three, six or 24 months, and prices start at around £300, but everything (apart from your fuel use) is included in the monthly cost.
That means insurance, tax, servicing and any associated costs that come with owning a car are all covered.
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Never an option to buy with a car subscription
With this method, there is never an option to own the vehicle once the agreement ends. But, perks of using a subscription include its flexibility, whereby you can pause or cancel your deal after 90 days in the majority of agreements.
Also, you can usually upgrade or choose a cheaper alternative should your financial situation change.
If anything with your motor goes wrong, there is also a courtesy car deal in place to replace it, while home delivery is factored into the monthly cost too.
New and luxury cars are often more affordable for drivers too, and on top of the monthly spend, you only have to account for whatever fuel you’ll need. So, there will be no unexpected costs for fixing any parts or wear and tear damage.
However, you will not see any improvements to your no-claim bonus for your next car insurance deal. Cars included in subscription services are also limited to certain manufacturers.
The leading providers include Wagonex, Cocoon, Drive Fuze and Mycardirect, while if you prefer an electric vehicle (EV), there are options with Elmo and EZoo.
Differences to car finance
When it comes to car finance, you can choose an older version of a car and pay for it over a generally longer period, and it’s yours by the time that agreement ends. Or, you can exchange it for your new car of choice.
The intentions of many drivers to subscribe to car finance follow a spate of over one million car finance complaints being made this year.
This was due to car finance lenders benefitting from making ‘discretionary commission arrangements’ with brokers for hire purchase (HP) or personal contract purchase (PCP) deals, which were banned in 2021 by the Financial Conduct Authority (FCA). That prompted a mis-selling investigation by the regulator in January 2024.
Akshara Chandhok, director of PwC’s automotive practice, said companies that fail to offer car subscriptions are at risk of losing out, “especially now that many carmakers are moving towards EV-only output”.
Chandhok said: “Our research showed that one in 10 potential subscribers are people who would otherwise have no interest in acquiring a new car, so subscriptions could bring new consumers into the market who would otherwise be absent or disengaged.
“The move to EVs is opening up a whole new set of supply, demand and pricing dynamics. While many drivers would prefer a sustainable EV over their current petrol or diesel vehicle, they may baulk at the high upfront cost”.
Chandhock added: “With battery technology and digital features advancing so fast, many might also be concerned about being saddled with a vehicle that could quickly become outdated and difficult to sell.
“Subscription offers a readily affordable option while enabling owners to avoid the risks of obsolescence, battery deterioration and value depreciation.”
