Volkswagen has announced its first UK subscription service, launching a pilot site called On-demand with London-based startup Drover.

The pilot scheme launched in February, offering customers alternative ownership models on a limited number of vehicles to start with. The brand’s four three sellers – the Golf, the Passat and the Tiguan are available from £528, £514 and £643 per month respectively.

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These prices include the cost of the car, insurance, VED, servicing, and maintenance and breakdown cover. There is no deposit to be paid, while customers have the option to upgrade or downgrade their service depending on their needs.

Customers can sign up for a one-month rolling contract or a 12-month term, with discounts available for longer contract periods. The service is available fully online, with users able to complete a deal within 48 hours.

“Given the changes we face in the automotive landscape, and as drivers’ needs change, we need to adapt from traditional concepts like outright ownership, into more flexible and user-friendly options like subscriptions,” said Claire McGreal, brand strategy and mobility services manager at Volkswagen UK.

“Our pilot partnership with Drover is Volkswagen UK’s first exploratory step into subscription services, but represents the first shoots of something much bigger – an evolving brand. Subscription services in general offer the convenience, freedom and ease of use that people have come to expect from Volkswagen.”

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Felix Leuschner, founder and chief executive of Drover, added: “We are excited to start working with Volkswagen and Volkswagen Financial Services, and feel proud to be able to make this announcement. Together, we’re helping to drive a shift within the industry toward exploring new business models to meet the needs of the next generation driver.

“The partnership brings together some of the most popular cars in the world, with our innovative business model and we can’t wait to see how this can impact ownership as we know it.”