Fixed-term Subscription of Nearly-new Cars

When refurbished to retail-ready condition, nearly-new cars are arguably indistinguishable from their brand-new counterparts. For some, the fixed-term subscription on nearly-new can significantly reduce customers’ monthly cost.

Proof - Derived from market pricing for the BMW 320i M Sport, the charts at right reflect estimated monthly subscription cost (as of February 2021) for brand-new, 12-month-old and 24-month-old car, each taken for a fixed term of 24 months.


The trade curves validate lease pricing for 1+23, 1+35 and 1+47 contract hire quotes from Nationwide Vehicle Contracts and estimated monthly maintenance costs have also derived from Nationwide quotes.


As shown, by taking a 12-month-old car, subscribers save £111/month on the comparable brand-new car and subscribers taking a 24-month-old car save £213/month.


Unfortunately, savings on nearly-new subscription aren't necessarily available on make models with a steeper depreciation curves or more quickly expanding maintenance costs.


Conclusion – Car subscription can be an attractive form of consumer finance on certain makes and models of nearly-new cars.

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Having spent a significant career in the global daily rental and leasing sector, I can't seem to put down these issues in a disrupted retail sector.

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