New data from Cardiff-based car subscription company Wagonex has revealed that younger drivers are most likely to take out a car on subscription.
Drivers aged 26-35 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+.
With the latest sector statistics revealing that the UK’s car subscription market is the biggest in Europe in terms of revenue, the experts at Wagonex delved into its consumer data to find out key trends in the industry.
Wagonex found that nearly four in ten 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.
The Wagonex statistics 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. 15% of car subscription customers choose electric vehicles, with the CUPRA Born the most popular EV model.
- Kia
- BNW
- Audi
- SEAT
- Volkswagen
- Nissan
- Citroën
- Mercedes
- Renault
- Peugeot
Wagonex also found that when it came to the length of subscription, three months is the most popular term, with 30% of customers committing to a three-month subscription. In comparison, nearly a fifth chose a six-month subscription, and 17% opted for 12 months. This suggests a clear preference for shorter term, flexible vehicle options – as opposed to the more traditional two to five-year term lengths offered by PCP and car leasing.
Speaking on the future of the car subscription market and the data findings, 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.
“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.
“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. At Wagonex we are seeing increased interest from industry players who see subscription as a growing automotive trend, and this is echoed in the wider industry. The latest statistics show a growth of 22% in the UK industry from 2019-2023, and this growth is only expected to continue.”
