Jaguar Land Rover has launched a car subscription service

Jaguar Land Rover, through startup Pivotal, has launched a premium car subscription service.

Britain’s biggest car maker said it has set up the service, called Pivotal, for affluent UK customers who can swap between the Land Rover range when it suits them.

The Land Rover Discovery and Range Rover Sport are included, with new models being introduced at a later stage, including the new Land Rover Defender and two new plug-in hybrid electric vehicles: the Land Rover Discovery Sport and Range Rover Evoque PHEVs.

Customers can also choose the all-electric Jaguar I-PACE, or alternatively the Jaguar F-PACE. The service will allow members to adapt their vehicle choice every six months.

Pivotal will initially be looking to grow and integrate with approved Jaguar and Land Rover retailers to supply the vehicles.

“The new service offers an alternative to the traditional vehicle ownership and leasing plans. A single monthly payment covers the rental cost, insurance, tax, servicing and repairs – leaving just fuel to pay for. There are multiple membership tiers available and members can put their subscription on hold from month to month,” the carmaker said.

It said that 18% of drivers prefer no-commitment subscriptions to paid-up ownership.

The subscription service costs £750 per month, going up to £1,600 for more advanced models, with the price covering tax, maintenance and insurance, while customers can cancel their subscriptions after three months.

Bloomberg reports that other companies have announced similar programmes: Volvo Car AB is introducing a subscription service, Care by Volvo, in September.

London-based startup Drover Ltd has partnered with BMW AG to offer an alternative to car ownership. And in the US, Volkswagen AG’s Audi unit offers subscriptions for its cars, starting at $1,495 a month.

Daimler AG’s Mercedes-Benz brand introduced a US subscription service in 2018, but pulled the plug on the two-year-old pilot.

Jaguar Land Rover, owned by Tata Motors Ltd, said in a statement that it expects subscription services to account for almost 10% of all car sales in the US and Europe by 2025.

Read: Volkswagen adds T-Roc to its SUV range in South Africa


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Jaguar Land Rover has launched a car subscription service