BMW Group UK has partnered with start-up Drover to offer BMW and Mini cars on a monthly subscription basis.
The product, offered through Drover’s website, bundles the cost of ownership, including taxes, servicing and insurance, under a single monthly payment, starting at £562 a month for a Mini Cooper 3-door Hatch.
According to BMW, customers can swap vehicles, pause or end the subscription at any time, without long-term commitments.
The partnership with Drover spun out of the 2016 Innovation Lab organised under the direction of BMW FS UK, which also led to commercial collaborations with analytics company Warwick Analytics and payments developer Divido.
The launch of the UK product follows reports at the end of March that BMW was looking into a subscription pilot for the US state of Tennessee.
Chris Brownridge, BMW UK sales director, said: “New, creative solutions allow the chance for car users to experience BMW or Mini ownership for as long or as little as they require.”
Felix Leuschner, founder and chief executive of Drover, said: “Our partnership brings together the latest and best in cars with a new model of ownership to give those demographics access to vehicles who might otherwise not purchase one, driving incremental revenue for BMW Group UK.”
A number of carmakers have been experimenting with subscription models, launching similar offers in Europe and the US over the last year.
Ford has been experimenting with its “Canvas” product in California. BMW’s closest rival, Daimler’s Mercedes-Benz, has reportedly also been looking into the model.
In the UK, independent broker Wagonex also offers subscriptions for a variety of models and makes, with the possibility for dealerships to partner.
Wagonex chief executive Toby Kernon wrote on his blog in September: “We are moving towards the world where people are no longer willing to compromise with the time and hassle it takes to look after a car.”