Autoleasing and autosubscription: what's the difference?

Leasing is an established way to pay for a new or used car, offering competitive monthly payments and a wide range of models. Renting a car is not the only option if you want to pay monthly for a car. Along with the traditional methods of financing car ownership, such as installment purchase (HP) or personal contract purchase (PCP), a new solution called a car subscription is becoming increasingly popular.

When you subscribe to a car, your monthly payment includes not only the cost of the car, but also your taxes, insurance, maintenance and breakdown coverage. This is a flexible and convenient option that may suit you better. Here, to help you make your decision, we'll take a look at how a Cazoo car subscription compares to a typical car leasing deal.

How are car leasing and auto-subscription transactions similar?

Leasing and subscription are two ways to get a new or used car by paying for it monthly. In both cases, you pay an initial deposit followed by a series of payments for the use of the car. Although you are responsible for caring for the car, you never own it and generally have no option to buy it after the contract expires. 

With a car subscription or lease, you don't have to worry about depreciation or resale since you don't own the car. Both options come with monthly payments to help you better plan your spending, and the all-inclusive nature of the subscription makes it especially easy.

How much deposit do I need to pay and will I get it back?

When you rent a car, you usually have to pay in advance. Most leasing companies or brokers allow you to choose how much deposit you pay - it's usually the equivalent of 1, 3, 6, 9 or 12 monthly payments, so it can be up to several thousand pounds. The larger your deposit, the lower your monthly payments will be, but the total rent (your deposit plus all your monthly payments) will remain the same. 

If you rent a car, you will not get back the deposit when you return the car at the end of the contract. This is because, although often referred to as a "deposit", this payment is also known as the "initial lease" or "initial payment". It's actually better to think of it as a piece of money that you pay upfront to reduce your monthly payments, similar to purchase agreements like HP or PCP. 

With a Cazoo subscription, your deposit equals one monthly payment, so you can pay much less money up front. The big difference compared to leasing is that it is a normal refundable deposit - at the end of the subscription you get the full amount back, usually within 10 working days, provided the car is in good technical and cosmetic condition and you have not exceeded the limit run. If there are any additional costs, they will be deducted from your deposit.

Is maintenance included in the price?

Leasing companies, as a rule, do not include the cost of maintaining and maintaining the car in the monthly payment - you must pay for this yourself. Some offer service-inclusive leasing deals, but these will have higher monthly rates and you usually need to contact the landlord for a price.   

When subscribing to Cazoo, service is included in the price as standard. We will notify you when your vehicle is due for service and arrange for the work to be carried out at one of our service centers or an authorized service center. All you have to do is drive the car back and forth.

Is the road tax included in the price?

Most car leasing packages and all car subscriptions include the cost of road tax in your monthly payments as long as you have the car. In each case, all relevant documents (even if they are online) are completed, so you do not have to worry about renewals or administration.

Is emergency coverage included in the price?

Leasing companies generally do not include the cost of emergency coverage in your monthly car payments, so you must arrange and pay for it yourself. Full emergency coverage is included in the subscription price. Cazoo provides XNUMX/XNUMX recovery and recovery with RAC.

Is insurance included in the price?

It is highly unlikely that you will find a leasing deal with insurance included in the monthly payment. The Cazoo subscription includes full insurance for your vehicle if you qualify. You can even add coverage for up to two additional drivers for free if your partner or family member will also be driving.

What is the duration of a car lease or car subscription agreement?

Most leasing agreements are for two, three or four years, although some companies may enter into agreements for one year and five years. The length of your contract affects your monthly costs and you usually pay a little less per month for a longer contract.  

Much the same applies to a car subscription, although you can opt for a shorter contract, as well as the ability to easily renew your contract if you want to keep the car longer than you expected. 

Cazoo offers car subscriptions for 6, 12, 24 or 36 months. A 6 or 12 month contract can be ideal if you know you will only need the machine for a short period or if you want to try the machine before you buy it. This is a great way to see if switching to an electric car is right for you, for example, before you take one.

When your Cazoo subscription expires, you will be able to return the car to us or renew your contract on a monthly basis, allowing you to cancel your subscription at any time.

How many miles can I drive?

Whether you rent or subscribe to a car, there will be an agreed limit on how many miles you can drive each year. Rental deals that look temptingly cheap can come with mileage limits far below the UK average annual mileage of around 12,000 miles. Some may give you an annual limit of as little as 5,000 miles, although you usually have the option to increase your mileage limit by paying a higher monthly fee. 

All Cazoo car subscriptions include a mileage limit of 1,000 miles per month or 12,000 miles per year. If that's not enough for you, you can increase the limit to 1,500 miles per month for an additional £100 per month, or up to 2,000 miles for an additional £200 per month.

What does "fair wear and tear" mean?

Car leasing and subscription companies expect to see some wear and tear on the car when it is returned to them at the end of the contract. 

The allowable amount of damage or deterioration is called "fair wear and tear". The British Car Rental and Leasing Association has set specific rules for this and these are enforced by most car rental and car subscription companies, including Cazoo. In addition to the condition of the car's interior and exterior, the rules also cover its mechanical condition and controls.  

At the end of a lease or subscription, your vehicle is assessed using these guidelines to ensure it is in excellent mechanical and cosmetic condition for its age or mileage. If you take good care of your car, you will not have to pay any additional fees when returning the car.

Can I return the car?

A Cazoo car subscription includes our 7-day money-back guarantee, so you have a week from delivery of the car to spend time with it and decide if you like it. If you change your mind, you can return it for a full refund. If the vehicle is delivered to you, you will also be refunded the shipping cost. If you cancel your subscription after seven days but before the 14 days have passed, we will be charged a £250 car pick up fee.

After the first 14 days, you have the right to return the rental or subscription vehicle and terminate the contract at any time, but a fee will apply. By law, leasing and subscriptions have a 14-day cooldown period that starts after your contract is confirmed, giving you some time to decide if the car you've chosen is right for you. 

When renting a car, most companies charge you at least 50% of the remaining payments under the contract. Some charge less, but that can still add up to a significant amount of money, especially if you want to cancel within the first year or two. If you wish to cancel your Cazoo subscription at any time after the 14-day cooldown period, a fixed early termination fee of £500 will apply.

Can my monthly payments increase while I have a car?

Whether you are renting or subscribing, the monthly payment specified in the contract you signed will be the amount you pay each month until the end of the contract.

Now you can get a new or used car with a Cazoo subscription. Just use the search function to find what you like and then subscribe to it completely online. You can order home delivery or pick up at your nearest Cazoo customer service center.