The scheme is likely to be a version of one already in place in Germany. There, customers can choose to include insurance in their monthly bill, or to add maintenance on top of that.
The finance packages are also tweaked to allow the customer to pay a higher monthly price in the first half of the agreement (usually four years), then pay less for the remainder of the deal.
VW sources say the scheme is likely to be finalised in the coming weeks but admit that the firm is targeting a modest deposit and a base fee of 99 per month for the entry-level 54bhp version of the Up, including insurance.
The scheme is designed to appeal to cost-conscious customers in the market for a sub-10,000 car and to break down some of the running costs that can deter younger customers.