Driving a new car for less: The long-term savings of a car subscription
Driving a new car for less: The long-term savings of a car subscription
Introducing car subscriptions for a new car
Subscription services have become extremely popular over the past number of years with companies like Netflix, Amazon Prime,and Spotify now household names. One area where a subscription could actually save you money instead of costing you money is a car subscription. It’s an exciting alternative to car ownership that puts you in total control of what you drive and what you pay. Every month, you can drive a new car without having to worry about any of the normal running costs such as tyre replacement, tax, or servicing - they’re all included!
With outright ownership or leasing, you'll have to deal with a whole host of unexpected costs, with your true cost potentially doubling what your original monthly payment was. You’ll also save yourself from depreciation if you opt for a car subscription, while still being able to enjoy a new car every month if you want. A subscription allows for a predictable monthly cost that you can plan around the very beginning, with no unexpected costs to worry about at all.
You also only have to commit to a subscription for a month at a time instead of being locked into a long-term contract. This means you only ever pay for exactly what you use.
Benefits of a car subscription vs auto financing
One advantage that a car subscription has over auto financing is the difference in monthly payments between the two. Most people who finance their car will use PCP (personal contract purchase). This typically involves a large upfront payment, a long-term contract, and a final lump sum. The lump sums will often be 10% of the vehicle value, whereas with a car subscription, you’ll just pay one month upfront - often under £500. There are also unexpected costs associated with financing. The cost of ownership, repairs, and maintenance will send the overall price soaring.
A car subscription also provides a highly affordable option to people who want a car but don’t want to make any long-term commitment. PCP usually means you’re locked into monthly payments for years at a time. A car subscription allows you to commit for just a month. You can trial different cars without having to commit to any in particular, and you can cancel your subscription whenever you like without having to worry about early termination fees.
Finally, one of the biggest costs of running a car is the maintenance and repair costs. A 2021 survey revealed that the average annual cost to run a car in the UK was just over £3,400, rising to more than £5,700 for those using finance. 19% of those surveyed had to take on debt to cover costs in the previous year, with that number more than doubling when it came to millennial car owners. Instead of taking this risk, why not consider a car subscription where all of these costs are included in your flat monthly fee?
Long-term savings of a car subscription
Car subscriptions offer incredible long-term savings, particularly compared to traditional car ownership. You’ll benefit from lower monthly payments with a subscription when compared to typical financing for a car purchase, as well as never having to worry about unexpected costs. You’ll also pay less upfront, with a car subscription just needing a month's payment upfront as opposed to the 10% lump sum often required with PCP. You’ll also avoid the end-of-contract balloon payment associated with PCP.
Car subscriptions save you from long-term maintenance and repair costs, including expensive replacements like tyres. Finally, with a car subscription, you’ll never have to worry about depreciation.
Car subscriptions afford you a cost-effective way to use a whole range of vehicles depending on your changing needs. You might need a bigger car as your family grows, or maybe something more comfortable if you change jobs and have a longer commute. A car subscription fits almost any circumstance.
Let’s take a quick look at an actual cost comparison between buying a car outright versus a car subscription.
As you can see, it would take at least three and a half years for the subscription cost to meet the outright cost of buying. All of these prices would also increase significantly if financing is involved, and if the cost of running and maintaining the car was added. That’s not to mention the fact that the subscription cost wouldn’t tie you to any of these cars, you’d have the freedom and flexibility to change every month if you want to.
Finding the right car subscription plan
There are a few important things that you’ll want to consider before you begin your car subscription. First, make sure that a car subscription is the right choice for you.
Then, the exciting part - you’ll need to pick your car! To do that you should decide what type of car you’ll need. Here’s a list of some things you should consider:
- What kind of use will the car get? Is it a daily runaround or a heavy motorway commuter?
- How many seats do you need?
- Do you need a lot of boot space?
- What type of fuel would you prefer, or would you like to go electric? (Make sure you consider the charging facilities near you if you choose to go electric)
- Do you prefer manual or automatic transmission?
- What features are a necessity for you?
- What’s your monthly budget for the car?
Once you’ve answered all of these questions you’ll have a very solid idea of what type of car you’ll need. You can use our helpful filters when browsing our cars to make this process even quicker for you.
Finally, you’ll need to consider some of the specifics around your subscription. Will you be the only person driving this car or will somebody else such as your spouse also be using it? You’ll also need to calculate your monthly mileage. For our subscriptions, 1,000 miles are included as standard per month but you can always add extra if you think you’ll need it.
How to get started with a car subscription
Getting started with a car subscription is an extremely simple process. At Drive Fuze, it only takes four simple steps:
- Selecting your car
If you followed the advice above, you’ll have a good idea of what type of car will suit your needs. Once you’ve selected your car, not forgetting the all-important choice of colour, you can continue onto the next step.
- Confirming the specifics
Next, you’ll go through the specifics with Drive Fuze. If you’re setting up your subscription online, you’ll be asked to create an account and input your information. You can detail who’ll be using the car and decide on what mileage you’ll need for the month.
- Checking your documents
Next up, the paperwork. There are a couple of documents you’ll need to have ready in order to ensure your signup process goes smoothly:
- Your driver’s licence
- Proof of address (utility bill, council tax bill, mortgage statement)
Following receipt of these we’ll also run a soft credit check, but don’t worry, this won’t affect your credit score. We’ll also check to see if you meet all of the rest of our requirements for starting a subscription. These include things such as being 25 years of age or older, and holding a UK licence for at least a year.
Once this is all taken care of and you have been approved we’ll take your first payment - an upfront payment of a month’s subscription plus any admin or delivery fees that may apply. You’ll get this upfront payment back whenever you decide to hand the car back.
- Delivery time
You’ll be able to choose whatever day you want the car to arrive, with Drive Fuze providing guaranteed delivery within seven days of order confirmation. When we arrive, make sure to have your driver’s licence close by so we can confirm your identity. Your first month’s subscription will also be taken on this day, which becomes your payment day for each month until the end of your subscription.
Now that you have a good idea of what our subscription process actually looks like, here are a few valuable tips for negotiating the best car subscription deal:
- Do your research: You’ll want to know everything that’s included in the subscription. Make sure any feature that’s important to you is included if possible.
- Know your budget: Once you’ve decided your monthly budget, don’t waver. Keep this in mind as you discuss different cars. Be clear and firm from the beginning that that’s as much as you’re willing to pay.
- Don’t be afraid to ask for a discount: The worst that can happen is you’ll be told no. There could be promotions available so make sure to at least try and secure a better deal.
Is a car subscription right for you?
Car subscriptions really are the future of motoring. They offer fantastic long-term savings through lower monthly payments, lower upfront costs, and no worries about your car's value depreciating.
At Drive Fuze, our car subscriptions offer you the freedom and flexibility to focus on what matters to you. Our all-inclusive subscriptions take care of tax, insurance, servicing, maintenance, and breakdown costs so that you can concentrate on what’s truly important.
Take a look at our cars now and see what you could be driving next week!