What is a car subscription service?

A car subscription service is a flexible, all-inclusive alternative to car ownership or leasing. For a fixed monthly fee, users can access a vehicle with insurance, maintenance, and roadside assistance included, often with the option to switch cars or cancel anytime.

How does a car subscription work in the UK?

In the UK, car subscription services allow users to choose a car, select a subscription plan, and pay a monthly fee that includes key costs like insurance and maintenance. Vehicles are often delivered to the customer and can be switched or returned based on the subscription terms.

What are the benefits of car subscription services?

Key benefits include flexibility, convenience, all-inclusive pricing, no long-term commitment, and predictable costs. Subscriptions are ideal for drivers who want hassle-free access to a car without the burdens of ownership.

Are there any drawbacks to using a car subscription?

Disadvantages include limited vehicle choice compared to traditional ownership or leasing, higher long-term costs, and lack of equity, since subscription payments do not contribute toward vehicle ownership.

Is car subscription cheaper than leasing or buying?

While car subscriptions offer lower upfront costs and bundled pricing, they are often more expensive over time compared to leasing or buying. They are best suited for short to medium-term needs.

Do car subscriptions include insurance and maintenance?

Yes, most UK car subscription services include insurance, maintenance, servicing, road tax, and roadside assistance within the monthly fee, making budgeting easier for drivers.

Can I switch cars with a subscription service?

Many subscription services allow users to switch cars during their contract, depending on availability and terms. This is ideal for changing needs, such as upgrading to a larger car or trying a different model.

Car subscriptions: the pros and cons explained

Written by Joe Achillies Updated 22 Oct 2025

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Car subscriptions are becoming more popular in the UK as another way to drive a car without owning it. But what exactly are car subscriptions, and how do they compare to traditional finance and leasing?

Whilst we don’t currently offer subscription-based car ownership at Car Finance 247, this guide will explain how car subscriptions work, their pros and cons, and how to know if they’re right for you.

What is a car subscription?

A car subscription is a relatively new way to drive a car without having to buy or lease it. Unlike car finance or leasing, a car subscription is more like a rental. You’re just paying to use the car, and you won’t own it at the end or build up any value in it. You pay a monthly fee to use the car, which could include:

Use of the car
Insurance
Maintenance and servicing
Road tax
Breakdown cover

At the end of the contract, you return the car or renew the subscription. With some car subscriptions, you can swap cars during your contract. For example, you might start with a small car but switch to a bigger one, or you might want a convertible for summer!

Why are car subscriptions becoming popular in the UK?

Car subscriptions have grown in popularity in the UK recently. This rise is likely due to their flexibility, convenience, and no long-term commitments. And, instead of worrying about separate payments for insurance, maintenance, and road tax, everything is rolled into one monthly fee.

They’re also more popular because buying a car outright has become more expensive. With rising interest rates and higher car prices nowadays, more people are looking for flexible options like subscriptions.

According to a Deloitte study, Gen Zs and millennials are more likely than others to opt for a car subscription service, so it’s proving popular with younger car drivers, who might not want the commitment or have the money for traditional car finance or ownership.

Let’s look into the benefits and drawbacks in more detail:

Pros and cons of car subscriptions

Pros

1. Ability to change cars frequently

One of the biggest perks of car subscriptions is the flexibility. Car subscriptions give you the freedom to change cars more regularly than traditional finance or leasing. Say you need a small car for city driving or a larger SUV for a family trip, you could switch to a different vehicle without much hassle.

Plus, a lot of subscription services allow you to adjust your subscription or cancel it with short notice, offering more flexibility than traditional car finance or leasing. But that depends on the provider and the terms of your deal, so it’s worth checking the small print.

2. All costs are covered

Car subscriptions cover most of the total costs in one monthly payment. Insurance, maintenance, and breakdown cover are often included, so you don’t have to arrange these separately. This makes budgeting easier and reduces the hassle of finding them all separately.

3. Potential cost savings

Unlike traditional car finance or leasing, there’s usually no large upfront payment or long-term contract with a subscription. While the monthly cost of a car subscription might seem high at first, it could work out better value when you factor in the extras. But it really depends on your situation. Sometimes, leasing or finance could work out cheaper overall.

Cons

1. Higher monthly payments

Car subscription services come with ongoing monthly payments, which could be higher than traditional leasing or finance deals. Even though the payments cover several costs, they might not suit people with a tight budget or those looking to reduce their overall car expenses.

2. Limited choice of cars

Not all makes and models are available through car subscription services. If you have a specific car in mind, you might not be able to get it through a subscription, especially during busy periods or with high-demand vehicles.

3. Mileage limits

Most car subscription plans set a monthly mileage limit. If you exceed this limit, you’ll likely face extra charges. Some services let you increase the limit for an additional fee, but it’s important to keep track of how much you’re driving to avoid unexpected costs.

Car subscriptions vs leasing

So, how do they compare to traditional leasing? Well, one of the biggest differences is that flexibility. Car subscriptions can offer more flexibility than leasing because you can usually swap or cancel with less notice. But this depends on the provider’s terms and might come with extra fees.

A car subscription also includes extra factors like insurance, so you might not need to source these separately. For this reason, the cost of a car subscription can seem higher than traditional leasing or car finance deals. But, once you factor in the costs of insurance, maintenance, and road tax, the total cost can be similar.

Is a car subscription right for you?

Car subscriptions might be a good option if you want to drive a car without a long-term commitment. They could work well for people who like to change cars regularly or don’t want to worry about extra costs for insurance and maintenance.

But, if you want to own a car or prefer lower monthly payments, leasing or car finance might be better options.

Remember, always make sure you understand all the terms of any finance deal or subscription plan, including the total cost, and ensure that it fits your budget.

The takeaway

Car subscriptions are becoming more popular in the UK because they offer a flexible and temporary way to drive a car. If you value flexibility and convenience, a car subscription could be a great choice.

But, while subscriptions generally offer more flexibility than car finance or traditional leasing, they can cost more each month. And since you’re essentially renting the car, you won’t own it at the end. If you’d prefer to work towards car ownership or prefer lower monthly payments, car finance might be a better fit!

Want to explore your car finance options? You can get a quote to compare different deals.

Disclaimer: Car Finance 247 Limited is a credit broker and not a lender. We can introduce you to a range of lenders, but we cannot provide financial advice. All car finance options are subject to approval, and terms and conditions apply. Always ensure you understand the total cost of any finance or subscription agreement and consider seeking independent financial advice to ensure it is suitable for your financial circumstances.