Cazoo has begun targeting new car customers with the launch of an all-inclusive new car subscription service, marketing models from Fiat and Ford to Mercedes-Benz and Tesla.
The online car retailer, which launched with a home delivery used car buying service in 2019, is now marketing more than 450 new cars – typically already registered and with odometers showing less than 50 miles – in a package which includes insurance, maintenance, roadside assistance, and VED, so that consumers can budget for one single payment each month.
The subscription can be for a minimum of six months and a maximum of 24 months, with ordering completed entirely online and Cazoo says delivery could be in three days.
The subscriber pays a deposit equivalent to two monthly payments, which is refunded at the end providing any damage is within the BVRLA’s Fair Wear And Tear Guidelines
Alex Chesterman OBE, 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.
“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.”
Cazoo, which bought UK motor subscription business Drover at the end of 2020, said subscription services have become increasingly popular over the past few years, from food to fashion and music to beauty, and its own recent research found almost a third (30%) of UK consumers are interested in subscribing to a car rather than purchasing it outright or financing it.
A fifth (21%) of those surveyed by Cazoo 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.
It believes car subscriptions will become increasingly popular as they provide drivers with greater flexibility to switch cars more frequently as well being able to roll all their car-related payments into a single monthly payment and avoid time-consuming administration.
Cazoo’s mission is to transform the car buying experience for consumers across the UK and Europe by providing better selection, quality, transparency, convenience, flexibility and peace of mind.
Cazoo aims to make buying a car no different to any other product online today, where consumers can simply and seamlessly purchase, finance or subscribe to a car entirely online for either delivery or collection in as little as 72 hours.