What affects the price of car subscription?
- The cost of your monthly car subscription is mainly affected by the type of car you get, deposit, and add-ons.
- There are ways you can reduce your monthly payment, but not by much.
- Subscriptions remain one of the most flexible routes to car ownership and what you pay monthly can often be changed.
In this guide, we explain exactly how the monthly price of a car subscription is calculated. from insurance and mileage to maintenance costs and contract terms, helping you to compare options and find the most cost-effective solution!
The make and model of the car
The very first factor which influences the cost of your monthly subscription is the vehicle type you want to get. This may seem like an obvious one, but subscription costs will significantly influence your subscription cost and will heavily depend on the make, model, year of production and version (or trim).
A single-car model is often available in different versions. Say you fancy getting a BMW 3-Series, well you will be spoilt with choice! There is a 320i M Sport, 320i M Sport Auto, M340d xDrive Touring… to name a few.
More premium models would cost more per month, and normally certain add-ons (such as additional mileage) would cost more too! Check out our car subscription vs car buying guide!
Here are some factors that can increase your subscription cost:
- The vehicle’s market value and depreciation rate,
- Brand reputation and demand,
- Technology features included,
- Performance specifications.
The cost of maintenance and servicing
Most, if not all, subscription services in the UK are comprehensive and include the following:
- Maintenance checks,
- Regular services,
- MOT costs,
- Unexpected repairs.
The cost of MOT is straightforward but when it comes to understanding what a repair for a particular model could cost, then that’s more tricky. Some cars are more reliable than others, spare parts are cheaper for certain makes, and particular cars may require more specialist knowledge and may be harder to service (e.g. EV)
The good news is that pretty much every single subscription provider offers new cars produced within the past 2-3 years, so maintenance on these is likely to be much cheaper.
Contract terms
Flexibility vs cost
Your contract length can significantly impact prices:
- Short-term subscriptions (1-3 months): Higher monthly rates.
- Mid-term commitments (6-12 months): Moderate pricing.
- Long-term agreements (12+ months): Most affordable rates.
Mileage considerations
Standard packages typically include:
- Base allowance of 1,000 miles/month,
- Option to adjust limits,
- Additional mileage charges for excess use.
The cost of your subscription deposit
The terms and conditions of paying a deposit when getting a car on subscription vary from provider to provider.
Some do not charge a deposit or sign-up fees so all you pay in your first month is the monthly subscription cost.
As you can see, the deposit can affect the cost of your car subscription quite a lot! The good news is that most providers either don’t ask for a deposit, or it’s refundable. So, you just have to think about your budget in the first month.
The value of the car
The price of a car is another factor which may look very obvious – if you want a high-end Tesla Model 3 with all the bells and whistles, well you should prepare to fork out a lot!
However, one of the biggest reasons the value of the car is a huge influence is the fact that more expensive cars could cost more to replace if stolen, or written off in an accident.
Car subscription companies take this into account when they put together their monthly subscription packages. They must work at a profit margin that would allow them to cover all expenses relevant to the car and also leave a small profit for them.
Additional costs to consider
Location-based expenses
One of the initial payments you may have to pay when subscribing to a car is the delivery fee. Thankfully, most providers can deliver your new car if you live near to where the car is held. This is normally around 40 to 50 miles.
If you live further than this, you should expect to pay for every additional mile over this. Sometimes this price can go as high as £1 per mile.
There are providers which offer a flat delivery fee if you want your car delivered anywhere in the UK mainland. The price for this hovers around £100.
Also, in addition to your delivery, some providers have different rates for collection (when you cancel your subscription and have to return the car) and exchange (when you simply want a new car). Swapping your car is normally either cheaper than the delivery fee or is free altogether.
Optional add-ons
Your mileage
How much you plan to drive is the next factor that requires attention. Similarly to other car finance agreements, such as Personal Contract Purchase (PCP), Hire Purchase (HP) or lease, car subscriptions have mileage limits too.
Most subscription providers offer up to 1,000 miles a month as part of your monthly package. But this could vary on the provider, car and type of vehicle (internal combustion vs electric vehicles).
For example, Wagonex works with car dealerships and each subscription agreement would largely depend on that. Before you sign it, they will provide you with all the details you need.
Other providers have a very clear mileage structure. You get 1,000 miles a month included in your monthly payment, but you can also pay to add more. Just how much depends on the car.
For example, if you want to add an extra 500 miles monthly and you drive an Audi e-tron, you will have to pay £330. For cheaper, lower-tier cars, the cost is £75 for the same distance.
Enhanced car insurance options
“But isn’t car insurance included in the price?” I hear you ask. It is for most providers and that makes car ownership so much simpler and easy.
However, other providers take into account more personal information about the driver to provide you with a car insurance quote. So, same as when insuring a car you own, the quote will be just as personalised and the premium would depend on your personal circumstance.
This means the cost would usually depend on:
- Driving history
- Claims history
- Years of driving experience
- Location
- Gender
- Occupation
- Marital status
This tailor-made car for subscription insurance normally also take into account the contract length.
Also, if you decide you want to drive abroad, you will have to mention that when subscribing to a car as you want to make sure you’re covered overseas.
Additional coverage
You might also look at getting additional driver coverage and international travel coverage, depending on what you’re planning to do while using a subscription vehicle!
Frequently Asked Questions
What's typically included in a car subscription price?
Most inclusive packages cover:
- Vehicle rental,
- Comprehensive insurance,
- Regular maintenance,
- Road tax,
- Breakdown coverage.
Can I adjust my subscription terms?
Most providers offer dynamic options to:
- Adjust mileage allowances,
- Upgrade/downgrade vehicles,
- Renew or modify terms,
- Early termination options
How do car subscription costs compare to traditional leasing?
When you compare subscription services to traditional lease options:
- Subscriptions offer more flexibility,
- Usually more inclusive of additional services,
- Often more competitive for short-term needs,
- More variable pricing options.
Browse all cars available on subscription
There are hundreds of cars available via UK subscription companies.
We also reference useful information from other reputable websites where appropriate and data is fact-checked. See our editorial guidelines.
