28 May 2021 | David Young
The days of the dreaded balloon payment and other hidden financial pitfalls associated with traditional car ownership could soon end as car subscription emerges
For years motorists have had three options when their contract has run its course – keep their vehicle by paying a final balloon payment, find the money for a new down payment and sign up to a new deal or hand back the keys.
Those who chose to buy outright, have the pain of dealing with depreciation, unless they have invested in GAP insurance to deal with value shortfall when selling.
Recent data suggests that 80% of drivers didn't use their cars at all during lockdown, essentially wasting more than a billion pounds on payments for cars they didn't drive1.
Toby Kernon, ceo and founder of Wagonex said: "The whole point of car subscription is to find a new, more user-friendly and flexible way of owning a car.
"We're all used to subscribing to all sorts of products and services these days and so why should cars be any different.
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