Vehicle subscription - an alternative to car ownership

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

Vehicle subscription - a car ownership option

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.

Subscription advantages

  • The choice of new cars available for subscriptions of anywhere between one and 36 months
  • Fully returnable deposits at the end of the contract which can be carried over to a motorist's next car
  • All parts and maintenance are included for the duration of the contract
  • Fully comprehensive, transparent insurance can be included in the monthly subscription payment

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.

More: Wagonex