VW latest to launch vehicle subscription service: what next for future of aftermarket?

Is this latest subscription scheme a threat to independent garages?

VW latest to launch vehicle subscription service: what next for future of aftermarket?
Volkswagen has launched a £514 a month subscription service, which delivers a just add fuel option for motorists.

Volkswagen Financial Services and Drover has started a pilot to offer vehicle subscription services to UK customers starting from £514 a month, which includes all servicing and maintenance costs, but what does this mean for the future of the aftermarket?

The new service could come as another blow to independent garages after the emergence of similar schemes from brands like Jaguar Land Rover, Volvo, Citroen, Peugeot and DS in offering vehicle subscriptions to UK customers.

The pilot scheme will initially run with a limited number of vehicles including the Golf from £528 a month, a Passat from £514 a month and the Tiguan from £643 a month.

Maintenance and servicing included

The price is on a just add fuel basis and includes the cost of the car, as well as comprehensive insurance, VED, servicing, maintenance and breakdown cover, with no deposit to be paid, and the option to upgrade or downgrade to suit the customer’s needs.

Customers can sign up for anything between a one-month rolling contract through to a 12-month term, with discounts available for longer contract periods.

The process is fully online, with users of the system able to secure their car in 48 hours.

Diversifying traditional concepts

Claire McGreal, Volkswagen UK brand strategy and mobility services manager, 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.”

Would you like to know whether work undertaken by independent garages is permitted in the subscription service? Do you think that such schemes are damaging to independents? Let us know in the comments.

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