Increasing number of Brits don’t want to be 'locked in' to car ownership

Car subscriptions services are expected to become more popular as living costs increase, causing more consumers look for greater flexibility with their finances.

A YouGov study found that nearly a quarter of British consumers (19%) are likely to prioritise cutbacks on automotive spending.

It also found that three-in-10 Brits agree with the statement: I don’t want to be locked into owning a car because my needs may change.

Among those who are aware of car subscription services, some of the main reasons they use subscription services are – it’s easier than to buy or lease (5%), they get to try new cars (5%), it’s convenient (5%) and there’s not long-term commitment (5%).

With the majority of car buyers already shopping by monthly price, the transition to subscription means consumers can budget more effectively as insurance, taxed and maintenance costs are bundled into one fee.

Stellantis’ mobility division Free2move boosted its subscription offer with the acquisition of car sharing company Share Now, a joint venture formed by Mercedes-Benz Mobility Group and BMW Group in 2019.

The OEM claims that the deal – initially agreed in May this year – positions Free2move as a leading global mobility player, adding 14 major European cities and 10,000 vehicles to its existing car sharing fleet of 2,500 vehicles.

It followed Volkswagen Group’s takeover of vehicle rental giant Europcar – a development it described as a ‘mobility milestone’.

Like the Europcar offering, the Free2move mobility service model allows a customer to take a car for a few minutes or a few hours.

Retailers are also investing in car usership, with Hendy Group becoming the first franchised car retailer to offer a new car subscription offering through a partnership with newly relaunched Karzoom.

A new insurance solution from mobility focused insurance provider Zego has allowed Karzoom to transition from a daily rental to a car subscription solution in an evolution AM discussed with co-founder and former ASE chief commercial officer Mike Fazal last month.

And long-time Karzoom partner Hendy Group will be the first to serve up the new solution, monetising a fleet of vehicles through its HendyGo brand.