EV uptake twice as high among subscription customers, finds Mycardirect

Car subscription provider Mycardirect has an overall vehicle mix of 28%, which is double the share seen in the UK car market overall.

The company, which is part of the AAM Group, believes this performance down to its “unique” customer proposition which offers more flexibility than traditional purchase or leasing schemes.

Mycardirect said this flexibility provides customers with the “confidence” to try out an electric vehicle, safe in the knowledge that if they decide it is not for them, they can switch vehicles within their contract period.

So far, the company confirmed that not one customer has decided to make this switch from electric back to the more traditional power sources of petrol or diesel.

Duncan Chumley, Mycardirect CEO, said: “We are hugely encouraged by the take up of electric cars and we are delighted to be beating the market by a rate of two to one. Our customers have told us that they love the flexibility our service offers. They are encouraged to try an electric vehicle for the first time, with no fear of being stuck with it if it does not suit their needs. That's the beauty of our flexible subscription service.

“In addition, our customers are also delighted that they can try a number of the latest EV models on the market, often without having to wait, due to the current long lead time with a number of manufacturers.”

The most popular electric cars so far have been the Tesla Model 3 and Model Y, the Mercedes EQC/EQA and the Audi Q4 e-tron.

Online car retailer Cazoo said will cease signing up new business to its own car subscription service, which it launched after acquiring Drover for £65 million in late 2020, from the end of this month. The company revealed it wants to cut costs by £200 million by the end of 2023, which will include around 750 job cuts.

Loopit, meanwhile, is witnessing increased demand from retailers looking at Subscription as an alternative revenue stream for their used car inventory.

Car subscription provides lower upfront costs compared to traditional car ownership, the ability to frequently change models, and many typical costs of ownership, such as service and maintenance, are included in the single monthly cost.