Car subscription services could challenge vehicle ownership (Image: Getty)
Minutes after the Silver Mercedes CLA arrives on my driveway I’m behind the wheel. Delivered right to my door, car insurance sorted, road tax sorted, no paperwork and no hassle. That’s the pitch DriveFuze is taking to the UK market with a subscription model set to disrupt the industry.
The major benefit to car subscription services is flexibility with motorists signing up on a month-by-month basis instead of longer-term deals lasting for years at a time.
At DriveFuze, customers can even swap vehicles every month meaning those bored of a Mazda CX-60 can swap to a Volkswagen Golf R. Didn’t like that electric Tesla? Simply return it and get the keys to a stylish Audi Q3 or Volvo S90, The choice is almost limitless.
James Birch, chief operating officer at Drive Fuze stressed that providing a fully customisable experience was a key selling point of subscription models.
Speaking to Express.co.uk, he said: “PCP and PCH contracts typically last between two and four years, and if drivers’ circumstances change in that period and they want to swap or return their car, they’ll be subject to hefty fees.
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Express.co.uk tried out a Mercedes CLA (Image: Luke Chillingsworth)
The car was well presented (Image: Luke Chillingsworth)
“With a subscription, it’s easy to change cars or cancel with just 14 days’ notice, and all the user needs to cover is the cost of collection and delivery.
“PCP and PCH contracts also tend to require a substantial upfront deposit payment – usually around 10 percent of the value of the car in the case of PCP, or six months’ lease in the case of PCH.”
Mileage limits are also pretty lenient with DriveFuze allowing motorists to travel as many as 1,000 miles per month. In comparison, some leasing contracts only allow road users to travel 5,000 miles per year, leaving road users watching their odometers more than the road.
All servicing and maintenance is included as well as breakdown cover with a 24/7 helpline available if customers run into trouble. Customer service through my experience was sublime with passionate staff happy to help and make the experience an enjoyable one.
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The Mercedes dropped off at my house was presented in immaculate condition with enough fuel included to get right up to speed straight away. DriveFuze’s car list is extensive with something to suit every taste from electric estate cars to stylish coupes.
The only audience unlikely to find anything are fans of supercars or classic vehicles which do not feature.
John added: “Hatchbacks remain the most popular choice among our under 40 and over 60-year-old customers, while SUVs are the go-to for those aged in between.
“The main thing we’ve learnt is that subscriptions are for everyone – whether you’re looking for petrol, diesel, hybrid or pure electric, manual or automatic, city car, saloon or SUV, and something simple and practical or a more luxurious option from a premium manufacturer.”
However, the subscription model is not a one-price-fits-all experience with the majority of motorists unable to get behind the wheel of the most expensive cars on offer. Prices start from just £399 per month but that will only get you the smallest models on offer, an MG Motor MG3 and a Fiat 500.
At the other end of the scale, Audi’s electric Q8 e-tron will set owners back an eye-watering £1,999 per month. Those hoping to upgrade to a different vehicle every month will have to pay the difference meaning it could cost hundreds extra to upgrade.
Although the hassle-free delivery system makes life easier than having to trek to a dealership, this comes at a slight premium. DriveFuze adds a £199 drop-off fee with extra rates if customers want to book in a dedicated time slot.
Collection fees also start from £199 meaning motorists can add almost £400 to the bill before even starting. Motorists also have to pay the equivalent of a monthly fee as a refundable deposit before getting access to their cars.
It means those opting for a top-end model will have to pay over £4,000 upfront in the first month while those at the lower end of the scale will splash out over £800.
Cash-strapped families do not have this kind of money hanging around in their bank accounts meaning subscription models are likely to target those with cash burning a hole in their pocket.
Figures from DriveFuze suggest their models can be cheaper than PCP contracts with a total monthly cost for a two-year Volkswagen Tiguan deal coming in at around £665.58. This is compared to a PCP quote of around £960.96 per month although PCP owners can usually keep the cars at the end of their deal.
The cheapest models will still set customers back almost £400 per month (Image: DriveFuze)
There is lots of choice on offer but costs can rise (Image: DriveFuze)
However, John stresses costs are still worthwhile when factoring in the age of the models on offer. DriveFuze models are almost brand new meaning motorists know they are receiving luxury when they sign up.
He said: “Yes, there are cheaper ways to access a car if its model, condition and mileage aren’t a priority, subscriptions are an extremely cost-effective way to access a new or nearly new vehicle, and can save drivers money compared with leasing, financing or ownership, especially once road tax, comprehensive insurance, servicing, maintenance and breakdown cover are factored in.”
Did I enjoy DrveFuze’s service? Yes. The ease and convenience allowed immediate access to a car well above my budget range if I went to a Mercedes dealer to buy one.
Subscription models offer flexibility unmatched for those used to lengthy finance or leasing deals and allow motorists to ditch their cars if life gets in the way. But, this is not targeted for those on a low budget making this an unattainable option for most on smaller incomes.
