Fiat launches £99 ‘pay as you go’ car lease

Fiat’s finance company says it has developed Britain’s first ‘pay as you go’ car lease. It starts from £99 a month, plus a charge per mile driven.

2020 Fiat 500 Mild Hybrid

Fiat has introduced the UK’s first ‘pay as you go’ car lease. It allows motorists to get a new Fiat 500 Mild Hybrid for a £99 up-front payment.

Subsequent monthly payments are also capped to £99 – with motorists paying 19.6p a mile on top for every mile they drive.

Fiat says that with the monthly payment and fuel factored in, the average 25-mile daily commute will cost £10.39.

According to research, those living in London pay, on average, £15.25 for their daily public transport commute.

To make the deal more tempting, Fiat is giving the first 500 miles for free.

“I am confident that one of the most affordable offers in Fiat’s history will become very popular with consumers over the coming months,” said Fiat UK country manager Francesco Vanni.

Fiat likens the deal to those found in the mobile phone sector – it comprises a low base rental price and any usage is calculated via the ‘pay as you go’ concept.  

Mileage is tracked using an onboard black box, which monitors all vehicle movements.

So confident is Fiat in its new offer, the company has hinted there are already plans to extend it to other models within the Fiat, Abarth, Jeep and Alfa Romeo ranges.

The company has also separately launched a car finance package with job-loss protection

How does the Fiat pay-as-you-go car lease work?

2020 Fiat 500 Mild Hybrid

The Fiat 500 Mild Hybrid car lease is a four-year agreement – after which motorists hand back the car with nothing more to pay.

The upfront cost at the start of the lease is £99.

After that, the monthly cost for 47 months is again £99 – plus 19.2p for every mile driven.

This is all calculated though the onboard black box, so owners automatically pay the correct sum each month.

Fiat’s offer to give the first 500 miles free saves owners £96.

There is no upper mileage limit – owners can drive 20,000 miles a year if they wish (which would cost £3,840 a year).

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Richard Aucock
Richard Aucockhttps://www.richardaucock.co.uk/
Richard is director at Motoring Research. He has been with us since 2001, and has been a motoring journalist even longer. He won the IMCO Motoring Writer of the Future Award in 1996 and the acclaimed Sir William Lyons Award in 1998. Both awards are run by the Guild of Motoring Writers and Richard is currently vice chair of the world's largest organisation for automotive media professionals. Richard is also a juror and Steering Committee director for World Car Awards and the UK juror for the AUTOBEST awards.

6 COMMENTS

  1. I hope it’s successful,and profitable for FCA.
    Sounds like great deal to me.
    At least FCA’s got a few 500s ready to go.

  2. Hi Richard,
    So along with the fee per mile, is that fee on top of the actual fuel cost, I’m assuming that its a mild hybrid it’s fuel plus plug in,

    So actual cost would be

    99 per month = 1,188 per year

    Plus the 19.2p per mile and on average 10,000 per year = 1,920 per year ?

    Add both together = 3,108 per year ÷12
    = 259 per month actual cost

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