There are more and more options available for people looking for a new car to drive, giving buyers a wider choice of financing methods. Car subscriptions are still relatively new, but have already amassed millions of fans worldwide who enjoy the flexibility it offers. However, can a car subscription be more affordable than leasing?
How does a car subscription work?
With a car subscription, drivers can choose to borrow a car for a specific period of time – similar to how other popular subscription services like Netflix or Spotify work. You pay a set monthly fee, which allows you to use the car you’ve chosen, and once the subscription period ends, you return the car.
There are many similarities between car subscription services and rentals, with the main difference being their duration – a subscription lasts as long as you need it to, allowing you to cancel when necessary without having to suffer additional costs.
Keep in mind that many subscription services come with limitations, including a monthly mileage limit that might increase your monthly fee when exceeded. You’ll also have to pay all your parking fees and other additional costs just like you normally would.
What’s included with a car subscription?
While the specifics often come down to fine print, most subscription services include insurance, servicing, breakdown cover, road tax, and sometimes even fuel or electricity. You only need to worry about a single payment each month, instead of a whole range of different costs.
Subscription costs can vary a lot, which makes it incredibly important to shop around and explore your options before you decide on a vendor. Features included in the subscription also vary, so make sure to carefully read the contract specifics.
If you’re looking for an electric car subscription, most services come with an allowance for charging and carbon-offsetting, and often include a home charger within the costs.
Are car subscriptions more affordable than leasing?
While the upfront costs are often higher than with car leasing, car subscriptions include more extra features. Additionally, subscriptions usually come with a requirement of a small refundable deposit, while lease deals often require buyers to put up a substantial, non-refundable payment.
When it comes to leasing, drivers will often have to handle servicing, maintenance, and insurance on their own. While these costs are most often covered in the vast majority of available car subscription services, always make sure you take a good look at the details.
Ultimately, it is up to your specific needs whether a car subscription or a lease deal will work out better for you. If you’re not sure how long you’re going to need the vehicle for, would like to pay a lower refundable deposit, and want to have all additional costs like insurance factored in the monthly payment, then car subscriptions will most likely work out better in your case.
