Car subscription services, where you have the use of a new or used car including all expenses bar fuel for the price of a monthly payment, are gaining ground in the UK. Providers include Wagonex and Drover, which also powers schemes for car makers. Traditional rental companies including Thrifty and Europcar operate similar schemes.
But while a subscription, or monthly rental, might be a convenient and inexpensive way to browse recorded music or have a phone, is it a convenient and inexpensive way to run a car?
Sam Wright, 33, is a self-employed building surveyor living in Surrey. He has two cars – a Mini Cooper S 3dr auto and a BMW X2 xDrive20d M Sport X auto. Neither is leased or on a PCP; instead, he’s renting them.
“I’m done with leasing,” he says. “I’ve had BMW X5s, Audi Q7s, a GLC 43 AMG… I’ve put down £10,000 deposits, paid up to £1800 a month and been clobbered with £2500 excess mileage charges. There’s been maintenance, consumables and road tax to pay for, too, and always the worry my circumstances will change. I need a more flexible solution.”
He reckons he’s found it with FlexiFleet. It’s a scheme run by Thrifty and, although anyone can take advantage of it, it was created for sports professionals who can’t be sure how they’re going to be fixed financially from one season to the next. Consequently, FlexiFleet requires only a modest, refundable deposit equivalent to one month’s rental and a commitment to rent for only the first month, after which the customer can return their car without penalty. Insurance is the customer’s responsibility.
“It’s becoming popular with people on workplace probationary periods who are unsure what the future holds or others who are currently car-less but considering a job move that might come with one,” says FlexiFleet manager Gary MacDonald.
FlexiFleet’s monthly rental includes an allowance of 2000 miles, maintenance, breakdown cover and road fund licence. Assuming the customer wants to continue renting, after six months their car is replaced by a new one.
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Making a choice.
Having read the posts so far , I guess you make your choice and go with it, whether it's the right one doesn't matter, as long as your happy then that's all the matters.
I'd never criticise anyone
I'd never criticise anyone for how they spend their money but I'd advise the individuals dropping 10k deposits and then spending £2000 a month to get some good financial advice on what that money could do if invested. I never put a deposit down on a PCP as it's dead money. Also when you drop a 10k deposit on a car it looks like it's only 300/400 a month. A zero deposit calculation shows what the car really costs a month.
£900 a month for a 520d is madness though.
Ban all these silly lease,
Tycoon wrote:
But they can afford it.
Tycoon wrote:
Nonsense, complete nonsense. Are you suggesting one should make themselves homeless because they don't have 300k sitting around and have to mortgage their home? Finance, in whatever form plays a huge part in economics, without it, we'd have very little.