Major signs of a change in attitude to vehicle ownership have been revealed in new research from Volkswagen Financial Services UK, which shows that 61% of people aged 18 to 34 are interested in accessing a car via a subscription, similar to services such as for mobile phones and video streaming platforms. 

The attraction is that with subscription cars, all costs are bundled into one monthly subscription payment, and unlike other models of ownership, users simply hand the car back when they cancel their subscription. The findings will be a concern to the independent garage sector as subscription cars are generally locked into manufacturer maintenance agreements. 

Volkswagen Financial Services AG has announced plans to develop and implement car subscription models for selected brands in the Volkswagen Group across Europe; by 2030 and believe around 20% of revenue could come from subscriptions and other mobility offerings. 

Desire for subscription cars appears to decrease with age, with just 39% of 35 to 44 year olds saying they would be interested in a subscription service. This drops further among people aged 45 to 54 (26%), people aged 55 to 64 (18%) and people aged 65 to 74 (11%).

Mike Todd, CEO at Volkswagen Financial Services UK, said, “The way that people buy and rent cars is fast evolving and we need to make sure that, as our customers continue to engage more with digital technology, we make their online journey as simple and as convenient as possible. Subscription models are becoming increasingly central to how we consume content, food, and almost everything in between, so it stands to reason that people – particularly younger people – are interested in accessing vehicles in the same way.”