UK online car retailer Cazoo has launched a car subscription service, offering customers a vehicle with a single monthly payment inclusive of insurance, maintenance, servicing and tax.
Recent research from Cazoo found that three in 10 UK consumers are interested in subscribing to a car, rather than purchasing it outright or financing it.
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A fifth (21%) of those surveyed now have more monthly subscriptions than before the pandemic started, with 44% of respondents selecting subscription services for convenience, 25% stating that it saves them money and 19% highlighting that it helps with budget planning.
The subscription product will offer a range of new cars available for between six and 24 months, with the ordering process completed online and delivery in as little as 72 hours. At the end of the contract period, the customer can return the car, switch it for another one or keep it on a rolling monthly contract.
Each subscription includes fully comprehensive insurance cover, servicing, maintenance, road tax and 24/7 roadside assistance and comes with a 1,000 miles monthly allowance and a 7-day money back guarantee. The subscriber just needs to add fuel or charge the battery.
Alex Chesterman, founder and chief executive of Cazoo, said: “Subscriptions offer flexibility and convenience and it is clear from our research that a simple and comprehensive car subscription offering is long overdue.
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By GlobalData“The launch of our subscription service allows us to now offer consumers both new and used cars and the flexibility to either purchase, finance or subscribe, all entirely online. This is another step forward in our mission to deliver the best and most comprehensive car buying experience to consumers across the UK.”
Last month, Cazoo announced the appointment of Veronica Sharma as its first group chief people officer.
Over the past 12 months the Cazoo team has grown fourfold, from less than 500 to over 2,000 people across the UK and Europe. Sharma will take up her role in August when she will join the Cazoo executive team and report directly to founder and chief executive, Alex Chesterman. She will be responsible for all leadership, culture, capability and talent management across the group.
