The good news is, electric car subscriptions are competitively priced versus a lease contract. In other words, you won’t be breaking the bank to go electric.
Electric car subscriptions are a good deal. It means you pay a similar price for a subscription when compared to leasing but have more flexibility since you can rent your car on a month-to-month basis. In some cases, you can even cancel your subscription with 30 days’ notice.
What’s All The Fuss About Car Subscription Services?
Electric car subscriptions are causing a storm in the industry at the moment.
Even though the business model isn’t new, the fact that buying an electric car outright is still out of reach for most people, a subscription service seems like a great compromise.
The idea behind an electric car subscription is that you pay a monthly fee and in return, you have the use of an electric car for that month.
There are no long-term contracts, so if you decide you don’t want the car anymore, you can cancel your subscription with 30 days’ notice.
The main attraction of an electric car subscription is the flexibility it offers.
You’re not tied into a long-term contract like you are with a lease and you don’t have to worry about things like depreciation, insurance, and maintenance.
Car Subscription No Deposit
For most, saving up the deposit for a lease car can be a struggle. A car subscription removes this barrier by allowing you to sign up with no deposit.
In other words, all you need is the first month’s fee to get started.
The monthly fee for an electric car subscription will vary depending on the make and model of the car, but it’s generally around the same price as a lease contract.
This means that an electric car subscription is a great option for those who want to go electric but can’t afford the upfront cost of buying an electric car outright.
Note: In most cases, the subscription company will charge an admin fee on top of the monthly fee. This is generally around £50-£100 but can be higher for some companies.
What’s included in an electric car subscription?
An electric car subscription will include everything you need to get on the road. This includes:
- The car itself.
- Roadside assistance.
What’s The Catch?
There are a few things to be aware of before you sign up for an electric car subscription.
Firstly, even though there is no sizable deposit to pay, you still need to pass a soft and then hard credit check. This is because the subscription company needs to make sure you can afford the monthly payments.
Secondly, the choice of cars available is quite small compared to what’s on offer from a traditional lease.
This is because most subscription companies only have a limited number of cars in their fleet.
And finally, you need to be aware that electric car subscriptions are not currently available everywhere. In the UK, for example, there are only a handful of companies offering this service.
So, if you’re thinking of signing up for an electric car subscription, make sure you do your research first. And if you have any questions, be sure to ask the company before you commit to anything.
It All Depends on What’s Right For You
Let’s be frank, if you are looking at keeping your car for over 12 months, then you may be better off leasing or financing a car the traditional way.
However, for those of you who don’t want to be tied down or are looking for a short-term solution, an electric car subscription could be perfect.
The main thing to remember is that there is no one-size-fits-all answer when it comes to car ownership. It all depends on your personal circumstances.
There are many savvy customers that are using this subscription service as an opportunity to “try before they buy” an electric car.
The fact of the matter is, very few people have even sat in an electric car, let alone driven one.
If you’re on the fence about whether an electric car subscription is right for you, why not give it a try? You might be surprised at how much you like it.
A Low-hassle, All-inclusive Service
If you’re looking for a low-hassle, all-inclusive car service, an electric car subscription is definitely worth considering.
The main advantage of this type of subscription is that you don’t have to worry about things like depreciation, insurance, and maintenance. All of these costs are included in your monthly fee.
Another big plus is the flexibility that an electric car subscription offers. You’re not tied into a long-term contract, so you can cancel at any time with 30 days’ notice.
And finally, if you’re worried about the availability of electric cars, don’t be. There are now many companies offering this service in the UK and more are popping up all the time.
Freedom From Depreciation
This may not sound that important, but when you work out the depreciation on a new car over three years, it can be quite significant.
With an electric car subscription, you don’t have to worry about this because the monthly fee includes all depreciation costs.
This means that you can enjoy driving a brand-new car without having to worry about its value going down over time.
An electric car subscription is also a great way to try out different models and makes of electric car before you buy one.
This is because most subscription companies have a fleet of different cars that you can choose from.
And if you’re worried about the range of electric cars, don’t be. There are now many different models on the market that will suit all budgets and needs.
Upgrade Your Vehicle: Drive The Latest Models And Technology
The speed of change from traditional petrol and diesel cars to electric vehicles is accelerating. This means that new models and technology are being released all the time.
With an electric car subscription, you can upgrade your vehicle as often as you like to make sure you’re always driving the latest models and technology.
This is a great way to make sure you’re always ahead of the curve and getting the most out of your driving experience.
And if you’re worried about the cost of upgrading, don’t be. Most subscription companies offer a flexible monthly payment plan that can be tailored to your budget.
Cost Savings For Businesses
Ability to free up assets
If you run a business, there are many advantages to an electric car subscription.
Firstly, it can help you free up assets because you’re not tied into a long-term contract. This means you can cancel at any time with 30 days’ notice.
Your cash flow will also improve because you’re not having to make a large upfront payment for a new car. This is because the monthly fee includes all depreciation costs.
And finally, an electric car subscription can help you save money on your company car tax bill.
This is because electric cars are exempt from road tax in the UK and you also won’t have to pay the London Congestion Charge.
So if you’re looking for a flexible, cost-effective way to run your business, an electric car subscription is definitely worth considering.
Salary Sacrifice schemes
A salary sacrifice scheme is a great way to save money on your electric car subscription.
Under this scheme, you agree to give up a portion of your salary in exchange for a lower monthly payment. This means that you’ll pay less income tax and National Insurance.
The amount you can save depends on how much you earn and how much you’re willing to sacrifice.
But it’s definitely worth considering if you’re looking for a way to save money on your electric car subscription.
Please note that salary sacrifice schemes are only available to employees of companies who offer them. So if you’re self-employed or work for a small company, this option won’t be available to you.
Easy to manage, all-inclusive expense
If you have a lot of members of staff that need access to vehicles, an electric car subscription can be a great way to manage this.
This is because most subscription companies offer an all-inclusive expense package. This means that you’ll only have one monthly bill to pay, no matter how many people are using the service.
And if you need to add or remove members of staff from the scheme, most companies offer a flexible, month-to-month contract. This means you’re not tied into a long-term commitment.
So if you’re looking for an easy way to manage your company’s car expenses, an electric car subscription is definitely worth considering.
- An electric car subscription is a great way to upgrade your vehicle and keep up with the latest models and technology.
- An electric car subscription can help you free up assets, improve your cash flow, and save money on your company car tax bill.
- A salary sacrifice scheme is a great way to save money on your electric car subscription.
- An electric car subscription is an easy way to manage your company’s car expenses.
Are there any extras to pay for with an electric car subscription?
No, most subscription companies include all costs in the monthly fee. This includes things like depreciation, road tax, and the London Congestion Charge.
Is it better to get a subscription or buy an electric car outright?
It depends on your personal circumstances. If you’re looking for a flexible, cost-effective way to upgrade your car, an electric car subscription is definitely worth considering.
Can I really cancel at any time?
Yes, however, you will likely need to give 30 days’ notice.
Do I have to be a company car driver to qualify for a salary sacrifice scheme?
No, you don’t have to be a company car driver to qualify for a salary sacrifice scheme. However, you will need to be an employee of a company that offers this type of scheme.