Driver 1 has announced the launch of its car subscription service, offering car retailers the opportunity to monetise pre-registration stock.
In what the company believes to be an industry “first”, the service aims to make it more affordable for young drivers to pay for a car by the month and return it when they no longer need it.
The service offers vehicles for 18 months, with freedom to swap models as required.
All cars are three to five-years-old with a value depreciation of 50 to 70%, resulting in lower monthly subscriptions when compared to leasing.
Models offered are in low insurance and tax brackets with Euro NCAP 4 to 5 star ratings, alongside free road tax, MOT and mechanical inspection.
Driver 1’s founder, Tim Hammond (pictured), said: “We believe that subscribing to your first car makes far more sense than buying, particularly for young drivers who have never bought a car, and who couldn’t see the sense of owning something that depreciates in value.”
Driver 1’s business model means it doesn’t own any cars, and instead, offers dealer partners a new way to monetise cars that would otherwise be sitting around idle while depreciating.
However, Driver 1 doesn’t have to rely on dealers yet in every area, and can broaden the choice of cars available by allowing customers to choose the car they want from the open market.
It will buy the car from the dealership once a customer has selected it. If the car is returned, Driver 1 will offer it back to the dealership at wholesale price, re-offer it if under five years old or take it to auction.