Intelligent Car Leasing has become the first broker to launch a car subscription service.
The launch comes amid predictions that car subscriptions will account for 10% of all new vehicles retailed in the US and Europe by 2025.
Customers will be able to sign up through Intelligent Car Leasing’s website for a subscription that includes all services, except fuel, for hire periods ranging from six months to 24 months; users can swap vehicles every six months if required.
The technology behind the subscription service is provided by Wagonex, which provides all-inclusive flexible car subscriptions for a range of partners, including PSA Finance and Volkswagen. It was among a group of seven auto finance technology innovators chosen by Volvo Financial Services to develop and test ideas and technology as part of the iLabX incubator initiative and recently moved its headquarters to Cardiff, Wales, following significant investment from the Development Bank of Wales
Marc Murphy (pictured), head of sales and marketing at Glasgow-based Intelligent Car Leasing, said: “Increasingly, consumers want new ways to access the services they desire, whether it’s for films, clothes or for online deliveries.
“We believe now is the time for consumers to switch on to the benefits of car subscriptions, where all services are wrapped into the one package, and there’s the flexibility to choose different cars when they want and to stop the subscription at their convenience. It is the next step forward in car usership models.”
Many consumers have already moved away from traditional car ownership; personal contract purchase is used to fund most new cars, while demand for personal contract hire is growing. Contract hire is also the most popular form of funding for company cars.
Wagonex head of platform Joakim Thomter said: “Flexibility is the essence of car subscriptions, which allow the consumer to drive a car without any long-term financial commitment. We are an established player in the subscription market, and partner with a number of recognised automotive brands. This now includes Intelligent Car Leasing in the broker space."
Intelligent Car Leasing is a division of Fleet Alliance Group, which manages more than 37,000 vehicles with a combined fleet value in excess of £1 billion on behalf of its clients.
Last year, one of the UK’s biggest leasing companies, LeasePlan, introduced a new car subscription service called Subscribe & Drive as part of its strategic focus on Car-as-a-Service (CaaS).
In a recent change, LeasePlan announced it was partnering with vehicle subscription provider Drover to operate the subscriptions service.
