Volkswagen launches car subscription service in UK

Volkswagen has become the latest manufacturer to introduce a car subscription service in the UK.

Executives at the company say the trial scheme, operated through specialist vehicle subscription provider Drover in partnership with Volkswagen Financial Services, signposts the importance of investigating alternative ownership models.

Customers can pick from several key Volkswagen models, including the Golf, Passat and Tiguan.

Prices start at £514 a month and include comprehensive insurance, road tax, servicing, maintenance and breakdown cover.

Customers can sign for anything from a one-month rolling contract through to a 12-month term with no deposit.

Claire McGreal, brand strategy and mobility services manager at Volkswagen UK, said: “Given the changes we face in the automotive landscape, and as drivers’ needs change, we need to adapt and diversify from traditional concepts like outright ownership, into more flexible and user-friendly options like subscriptions.

“Our pilot partnership with Drover is Volkswagen UK’s first exploratory step into subscription services, but represents the first shoots of something much bigger – an evolving brand. Subscription services in general offer the convenience, freedom and ease of use that people have come to expect from Volkswagen.”

Felix Leuschner, founder and CEO of Drover, said: “Together, we’re helping to drive a shift within the industry toward exploring new business models to meet the needs of the next generation driver.”

Volkswagen is the latest in a growing number of brands to announce a UK subscription service.

Late last year, PSA Finance announced its second car subscription partnership in a month after agreeing a deal with UK-based Drover; it had previously penned an agreement with Wagonex.

Both pilots enable drivers to subscribe to a variety of cars from PSA Group brands covering Citroen, Peugeot and DS.

Other manufacturers that have announced partnerships with Drover include Mercedes-Benz UK.

Jaguar Land Rover has launched its own subscription service, called Carpe, while leasing companies are also investing in the sector, including LeasePlan, which offers Subscribe & Drive in the UK.

Rental companies, which have traditionally dominated the flexible vehicle market, are offering a growing range of mobility services in return.

Recently Europcar Mobility Group UK, through its Europcar brand, launched Long Term Flex, an all-inclusive motoring product offering brand new cars for any period from six months onwards, without any upfront payments.