15 juin 18

New all-inclusive subscription service for Jaguar Land Rover cars

Jaguar Land Rover has joined the growing number of manufacturers to offer its cars via a subscription service.

The luxury marque’s mobility subsidiary, InMotion Ventures, launched the new service, called Carpe, this week.

Carpe is targeted at high-mileage UK drivers, and provides any car within the Jaguar Land Rover range on a 12-month contract with no deposit (most personal leasing agreements ask for an initial deposit equivalent to either three and sometimes six monthly rentals).

All-inclusive package

The one-year agreement aims to overcome perceived customer dissatisfaction with long-term contracts, and the fixed monthyl fee covers the cost of the brand new car and delivery, as well as servicing, maintenance, tyres, glass replacement, roadside assistance and fully-comprehensive insurance from Allianz. Drivers have to be over 30, have had a driving licence for two years and made no insurance claims within the previous two years to qualify for the insurance. There is no limit on mileage, and the only extra expense is fuel.

Sebastian Peck, managing director, InMotion Ventures, said: “We know there is appetite for unlimited motoring packages and demand is growing rapidly for subscription services that better meet individual needs. For people who love driving premium vehicles but are tired of inflexible contracts, a subscription to Carpe is the solution.”

The company added that the subscription package is not for everyone, and said it is most attractive to high mileage drivers who like the idea of changing cars more regularly than most people. The cars must also be returned in good condition or drivers will face a supplementary refurbishment charge.

The contract can be taken out either as an individual or by a business, which could recover 50% of the VAT on the supply of the vehicle and 100% of the VAT on the servicing element of the contract. Prices range from £910 + VAT (€1,040) per month for a Jaguar E-PACE to £1,870 + VAT (€2,140) per month for a Range Rover Sport.

Carpe is the latest in a line of fledgling subscription services that aim to offer drivers greater flexibility in their choice of car, rather than tying them to the same vehicle for three or four years.

Subscriptions to account for half of Volvo's sales

Last week, Volvo announced ambitions that half of the cars it provides to customers will be on a subscription service by 2025. Its ‘Care by Volvo’ subscription product, launched with the XC40 car at last year’s Geneva Motor Show, offers a no-deposit solution that includes insurance, tax and servicing on a 24-month contract with fixed monthly payments. Depending on the country, Care by Volvo could also include fuelling, cleaning, service pick-up and e-commerce delivery to the car.

Håkan Samuelsson, president and chief executive officer of Volvo, said: “With Care by Volvo, we introduce a new car access for the modern age. In a time where consumers are used to transparent flat-fees for all sort of services, the traditional process of buying and owning a car can be perceived rather complicated. Care by Volvo changes all of that.”

Porsche's ultra-flexible promise

Porsche has stretched the concept of flexibility even further with its Porsche Passport subscription service, in Atlanta USA, that allows customers to switch cars within the same week. The fleet includes two and four-door cars, and all-inclusive prices start at $2,000 (€1,725) per month.

The rental alternative

The concept is similar to Sixt Unlimited, which promises its customers a car wherever and whenever they need one across Europe for a fixed monthly fee. There are six price bands, based on the type of cars selected, from compact to luxury.

This type of flexibility can cause tax headaches for company car drivers, depending on local benefit in kind tax rules – in the UK, for example, a driver would need to account for each car driven – but as a mobility option for an employee with a cash allowance, it seems the days of being loyal to the same car for 36 or 48 months are set to end.



Authored by: Jonathan Manning