Younger drivers ‘most likely’ to take a car on subscription

Drivers aged 26-35 years are six times more likely to get a car on subscription than those aged 56-65, and eleven times more likely than those aged 65-plus, new research suggests.

Analysis of the market by Wagonex found that nearly four in 10 subscription consumers (39%) are aged 26-35, while a third (33%) are 36-45 years old.

Meanwhile, less than one in ten (9%) of those taking out cars on subscription are over the age of 56.

Wagonex also found that when it came to the length of subscription, three months is the most popular term, with 30% of customers opting for that contract length.

In comparison, nearly a fifth chose a six-month subscription, and 17% opted for 12 months.

Wagonex says it suggests a clear preference for shorter term, flexible vehicle options - as opposed to the more traditional 2-5 years offered by PCP and car leasing.

Toby Kernon, CEO at Wagonex, said: “The future of the car subscription market looks promising, driven by shifting consumer preferences towards flexibility and convenience.

“As environmental concerns grow and consumer expectations increase, subscriptions offer an attractive alternative to ownership, allowing users to swap vehicles, access maintenance services and adapt to changing vehicle needs based on lifestyle changes.”

Wagonex analysis also revealed the most popular car makes in the subscription market, with Kia, BMW and Audi topping the list.

Other popular choices include luxury brands Tesla and Mercedes-Benz, with 15% of car subscription customers choosing electric vehicles (EVs). The Cupra Born the most popular EV model.

Source: Wagonex

“By joining the subscription market, automotive dealers are able to introduce an additional revenue stream, keep the customer for longer and reduce costs with fully digitised customer journeys and less manual processes,” continued Kernon.

“As we progress, technological advancements in electric and autonomous vehicles will further enhance the appeal of subscription models.

“Additionally, partnerships between automakers, tech firms and mobility startups are expected to expand offerings through integrations such as embedded finance.

“With a focus on sustainable and hassle-free transportation, the car subscription market is poised for significant growth and innovation in the coming years.”

Wagonex reports increased interest from industry players who see subscription as a growing automotive trend.

“The latest statistics show a growth of 22% in the UK industry from 2019-2023, and this growth is only expected to continue,” Kernon concluded.