Car Subscriptin vs. Car Finance – 7 Benefits of Car Subscription for PCO Drivers 2025

According to this report, global car subscriptions reached a whopping $3,550.4 million and are expected to reach $12,090.6 by 2027. On the other hand, the automotive finance industry grew by approximately $248.10 in 2020 and is projected to reach $385.42 billion by 2028. While the latter method may seem significant, the anticipated CAGR of the former is expected to take the lead in the coming years. Given these stats, it’s no secret that those opting to become PCO drivers in the UK are contemplating between the two. If you’re in the same boat as several other future PCO drivers, we’re here to help you. In this blog, we will detail the differences between car finance and car subscription and highlight all the benefits of the latter for PCO drivers looking to afford PCO cars. So, without further ado, let’s begin!

What Is Car Finance?

To put it simply, car financing is taking out a loan for your new car, which you promise to pay back within a pre-specified time, along with any agreed-upon interest rate for the loan and the fee payments. There are a number of factors that can impact your car loan. These factors include your credit score, down payment, debt-to-income ratio, length of the loan, and the age of the automobile.

The most significant disadvantage of financing a car is that the possible mileage fee and interest can become too hefty to pay back, increasing the car’s total price for you by a significant margin. Moreover, it can also become a nightmare to sell off your car in case you don’t need or want it anymore. In some cases, you might even need to take out additional liability coverage for the car and pay a premium price for insurance coverage of newer car models.

Despite these setbacks, PCO drivers often opt for the car finance option, primarily because it does offer potential benefits. Some benefits include evenly spread monthly payments, credit score improvement, budget accommodation, and the ability to purchase a new car more often.

What Is a Car Subscription?

The car subscription method involves a monthly fee, which includes registration, maintenance, 24-hour roadside assistance, and liability insurance. Unlike the car finance method, which binds the buyer to the new car for at least two years, if not more, depending on the payment term, you can opt for a 1-month, 6-month, or 12-month commitment. A car subscription will also give you the opportunity to swap your car with a new one every month.

1.     Benefits of Car Subscription for PCO Drivers

A survey conducted by Volkswagen Financial Services revealed that approximately 39% of adults aged between 35 and 44 are interested in accessing a car through a car subscription. The primary reason why people opt for this option is that they can cancel it at any given time, as easily as they can with Spotify Premium and Netflix accounts. In the case of G&M Direct Hire, for example, you can return the car after a minimum of just four weeks, given you provide the company with a one-week notice period.

2.     Low Credit Scores? Not a Problem!

In addition to having the freedom of handing the car keys back after a minimum subscription period, you also don’t have anything to worry about; even the thing troubling you is a low credit score. What’s more attractive for PCO drivers is that the paperwork is practically nothing compared to the car finance method. Also, in most cases, the deposit is returned back to the subscriber on the same day as they return the car.

3.     Grab a Replacement Car Whenever You Need

Unlike the traditional financing method, several subscription car providers offer their customers replacement cars in case there’s a problem in their subscribed automobile that requires repairs. Additionally, you can avail of the car service option and let the car provider arrange car service appointments for you.

4.     Car Subscription Covers Comprehensive Insurance Coverage

Companies such as G & M Direct Hire offer cars that have fully comprehensive insurance coverage. Any car that you rent through such companies is not sold without the relevant insurance policies. Also, while there typically is a mileage restriction, you can still go over the maximum limit and pay the additional weekly cost.

5.     Work for Uber

Most car rentals offer cars that meet the requirements of ride-sharing platforms, such as Uber. You can also confirm with the provider to ensure that your subscribed vehicle adheres to the policies and rules of the specific grade of service you want to offer through the ride-sharing platform.

6.     Avail Maintenance Packages

Several rentals in the UK offer maintenance packages that include a limited number of replacements and spare parts. These parts might include tyres, brake pads, and wiper blades, among other things. Speak to your provider to confirm whether any maintenance packages are included in your package or not.

7.     Say No to Lurking Hidden Costs

While it’s common for car leasing and financing companies to throw hidden costs in the mix that later surprise and devastate their customers, such hidden costs are never a part of the subscription-based model. The maintenance, insurance, and road tax fees are included in the subscription fee you pay, so no hidden costs will jump out to scare you. Moreover, the deposit fee is significantly less compared to the one paid during car finance.

Ready to Become a PCO Driver with G&M Direct Hire?

If you’re ready to become a PCO Driver and are looking for car subscription and rental services in the UK, you don’t have to look any further. G&M Direct Hire offers a wide range of automobiles that can suit any PCO driver’s needs and help them sign up for ride-sharing services on big platforms such as Uber. Our comprehensive rental plans include affordable prices and even brand-new electric vehicles for those who are looking to go green with their PCO driver services. What are you waiting for? Please pick up your phone and give us a call at +44 20 8900 9574 to get started today!