All Inclusive Monthly Car Subscription Service
What is a Car Subscription?
Running a car can be an expensive saga and with uncertainty in the air surrounding Brexit, many companies and individuals don’t want to commit to long term finance or car leases.
Car Subscriptions are an ideal way to run a vehicle, with one payment that covers vehicle rental, maintenance, road fund licence, breakdown assistance and a mileage allowance. The ability to pause, upgrade or downgrade can really help.
Image in like a Netflix service but for cars, choose your car, choose your mileage allowance, apply online and if successful, insure and drive away.
The exact length of the contract can determine the price. The longer you commit to the cheaper the car subscription service is, even then you don’t have a minimum term but you may have a cancellation fee to pay.
Need a bigger car, then upgrade the car to something with a bit more space. Too much space, then downgrade to something smaller.
SUV’s and Convertibles can also be options on a UK Car Subscription, with the ability to run a convertible in the summer and an SUV for the winter months.
How much does a Car Subscription Cost?
Car Subscription services can work out more expensive than traditional financing engines such as PCP, Hire Purchase or Contract Hire. But these subscription models come with flexibility, this includes being able to pause the car subscription or even upgrade or downgrade.
A car on subscription does work out cheaper, generally, than traditional daily rental and with most car subscriptions from Cocoon, the vehicles are new or nearly new and have been thoroughly checked if they are to be re-hired.
The cost of a car subscription will revolve around the type of car offered and the mileage parameters you will require. The excess mileage rate is quite a bit higher on these shorter car subscription services, so make sure you have given yourself enough scope, its not always about the lower price.
What are the downsides to a Car Subscription?
Due to its flexibility, the cost of a car subscription service is higher than traditional finance. However, it is cheaper than a traditional rental car.
You need to pass a credit check to get the advertised rates, non-status and new start businesses can apply, however, underwriters may offer alternative terms. This won’t be higher rentals, however it may involve personal guarantees, refundable deposits, a higher initial rental or a higher doc fee.
There are no used car car subscription options from Cocoon, so the prices are for new or nearly new vehicles. Therefore, due to residual values the rental may be higher.
Insurance can be provided by the hirer, but depending on the insurance company they may charge a premium. Those with fleet policies can easily add a car subscription vehicle to their insurance.
Two Different Car Subscriptions, Which one is for you?
Month-to-Month Car Subscription Service
Enjoy the flexibility of a month by month rolling car subscription.
- One all inclusive price
- No long term commitment
- Low initial outlay*
- Swap or Cancel Monthly
- Upgrade/Downgrade at anytime
Minimum Commitment Subscription
Subscribe to a car for 90 days or more to enjoy lower monthly costs.
- One all inclusive price
- Choose your ideal duration
- No large down-payments*
- Keep the car for up to 12 months
- Cancel the contract with a charge