The ultimate guide to car subscriptions

If buying a car, be it outright or on finance, is too big of a commitment and renting one is just not enough, car subscriptions may be for you.

By subscribing to a car service, you can experience car ownership without the hassle. Subscriptions offer a modern solution to transportation, making it easier to try different cars without having to commit to a long-term lease. In this guide, we explain what it is and why it’s a great alternative to owning or leasing a car. Read on to learn more about this new way of owning a car, especially if you're wondering how subscription plans work.

What is a car subscription?

A car subscription is a flexible, monthly plan that grants you access to a range of vehicles for a flat monthly fee. This is a great solution if you're looking for something short-term. The subscription contracts are inclusive of your essential car costs, such as insurance, road tax, servicing, breakdown cover, making them extremely easy to manage and more accessible than ever!

Unlike leasing or buying on finance, the subscription terms are more flexible. They tend to be on a month-by-month basis until you decide to cancel, or swap your car for a different one (if you get tired of it). Some services require you to commit to at least 2-3 months, but that can be the case for specific car models only.

Are car subscriptions a popular choice in the UK?

Car subscriptions are definitely becoming a more common choice in the UK. Research conducted by PwC in June 2024, found that 49% of consumers would be interested in a subscription service for their next car. This is because more people now want access to the latest cars and technology - especially as the electric vehicle (EV) market continues to rapidly grow. British consumers are also looking for more conveinent options and budget-friendly running costs in the current climate.It seems that 2025 is the best time to consider a subscription car!

What are the benefits of car subscription services?

The main benefit is the flexibility and convenience. Subscribing to a service is a growing trend, you get a regular food delivery from HelloFresh, a bunch of random gifts from LootCrate or even clothes from services like TrunkClub. All of these services try to make our busy lives easier.

The freedom to swap and change your car once a month is a game-changer for many. Gone are the days of being stuck in a finance contract, tirelessly waiting to hit the midway point of your agreement so you can trigger the voluntary termination clause!

Another big thumbs up for car subscriptions is the convenience of having all costs and bills included in one, all-inclusive monthly bill. Everything is clear and easy to understand, which makes monthly budgeting that much easier. There aren’t any unexpected costs. Check out our car subscription vs car buying guide!

In any other agreement, you’d be responsible for the maintenance, MOT, repairs, roadside assistance, tax and insurance, but a car subscription service takes care of all of that. You just need to pay for fuel and get on the road!

What cars can I get with a flexible car subscription?

There's a car for everyone. There are quite a few subscription providers now which makes finding the right car  simple. Subscriptions give you the chance to explore all of your options!

Subscription providers often source their vehicles from new, but if it’s a used one, more often than not, your car will be under 6 months to 1 year old. If your heart desires, you can drive a brand-new car every couple of months.

Most car brands are available on subscription, here a list of manufacturers available from services like Drive Fuze and My Car Direct.

• Audi
• BMW
• Kia
• Mazda
• MINI
• Range Rover
• Renault
• Tesla
• Volkswagen
• Volvo

The car inventory is regularly updated as and when cars are available and released. It’ll be hard to run out of choices!

How does a car subscription work?

The process of subscribing to provider is quite straightforward and you can be on the road quickly. Here are the usual steps to getting a car on subscription:

1. Choose the right car - Browse through the list of makes, models, and trims providers offer and find the right one for you! Be it a sporty Tesla Model 3, or a chunkier Volvo XC 90, there will be a car for everyone.
2. Register and confirm your details – When you find the car and provider you like, you’ll have to create an account and provide them with the usual details.
3. Credit check – Similarly to other products and services on credit, car subscription providers will carry out a credit check to confirm your identity. This will be a “soft credit check” which won’t affect your credit score.
4. Schedule a delivery – The final stretch. Once the car has been ordered and details confirmed, you’ll just need to wait for the vehicle to be delivered.
5. Drive – Enjoy simple car ownership without the hassle.

This is the usual process when creating a new account with a car subscription platform. However, when it comes to swapping the car for another, you won’t have to go through the same process again. Often. the car subscription company would arrange for the old car to be picked up, and the new one, delivered.

How to choose the right subscription provider for you

Choosing the right subscription provider may seem like a big decision to make, and it is! This solution makes flexibility of car ownership more accessible. Here are our top tips on how to choose the right subscription provider for you:

Research

As with any financial decision, research is very important. Make sure you take a look at the following:

• Monthly fee,
• A variety of cars are offered, 
• Restrictions (mileage),
• Additional fees, 
• Reviews of the provider,
• Upfront deposits, 
• Delivery and collection fees. 
• The fleet of cars they have available.

It’s also a good idea to learn more about the process, how it works whilst you have the car and how the cancellation process works.

Additional benefits

It’s also important, when comparing subscription providers, to compare any additional benefits they offer. Some services offer free EV charging or access to charging points through exclusive partnerships. 

What’s included in a car subscription?

A car subscription includes one monthly payment, but you may be wondering what is actually included in the cost of a car subscription.

With a car subscription, your monthly payment features the following:

• The cost of hiring the car.
• Fully comprehensive car insurance.
• Road tax.
• Breakdown cover (24/7 roadside assistance).
• Servicing (including when things go wrong or the car is due an annual service).
• Monthly mileage allowance.
• Normal wear and tear of the vehicle.

As you can see from the above, there's little to think about regarding maintenance, so subscriptions make car ownership easy!

How much does a car subscription cost?

A car subscription in the UK can cost anything from £180 to £2,000 or more per month. In addition, many services ask for a refundable down payment, activation fee, or deposit.

The cost of your car subscription plan will mainly depend on your chosen car and contract length. The cheapest car on subscription we could find is a Renault Twizy which costs just around £200 per month. The most expensive car, however, could be upwards of £2,000/month for vehicles like Tesla Model X.

When picking a car, always make sure the plan and cost fits in with your monthly budget. Also, as always make sure you shop around and compare subscription companies before committing to one.

Is getting a car on subscription worth it?

If you value convenience and flexibility then a car subscription is the right option for you. However, if you want your money to be going towards something you’ll eventually own, you should pick a car on finance (e.g. PCP or HP).

Some people find subscriptions to work as a quick or temporary solution until they buy a car they want to own. You can also treat subscriptions as an extended test drive. Find the model you want, drive until you are fully happy with it, and then go and buy it so you can own it. This is a great idea if you want to switch to an electric vehicle, but have little experience driving them.

The main downside with car subscriptions is the  monthly price tag which, for many, isn’t feasible for an extended period.

Having said that, the option to try a new car for a month or two, no strings attached, is an exciting prospect for many drivers in the UK. It might just oush you to consider replacing your old car.

What happens at the end of car subscription?

Once your subscription has come to an end, your car will be collected by the subscription provider. You can normally arrange a collection from your home, making the process as easy as possible.

The car will then be inspected for any damage that isn’t just normal wear and tear. If any additional servicing is required, you may be asked to cover the cost.

If everything looks good and the subscription company is happy, no further monthly payments will be taken!

Dropping the car at the provider’s premises is sometimes also an option. Read our full guide on deliveries and collections.

Are car subscriptions halal?

Yes, car subscriptions are halal because the subscription agreements do not involve interest.

Under Sharia law interest is forbidden. That's why Personal Contract Purchase (PCP) and Hire Purchase (HP), are not halal. Although, they can be if they are interest-free.

It can be a bit challenging to find the right car finance deal if you want to follow the law because most car finance lenders do not have halal car finance options. That's why car subscriptions can be an excellent sharia-compliant alternative!