Earlier when you think of getting a car two options are buying or leasing but now as the auto industry is evolving from conventional cars to electric and self-driving cars to more popularity of SUVs than sedans; the buyers’ needs are changing they want new things and new ways of owning a car then they already have. Car subscription is an alternative to buying or leasing a car; it’s like Netflix for a car. A great solution for people looking for vehicles temporarily or for someone who can’t stick to a single car for a long time. Let’s take a look at what a car subscription is? What are the pros and cons of a car subscription? How it is different from leasing? Which one is better?
Car subscription service or Vehicle subscription service is an alternative to traditional leasing in this you have to pay an all-inclusive flat fee monthly that includes vehicle cost, maintenance, insurance, roadside assistance, and other services. It is for a limited period after that you can swap to a new car or cancel the services depending on your requirement.
This is a subscription service you may not qualify for it. The automaker will check your credit score, driving record, and bank statement and will make sure you can pay monthly fees. You may need a credit card to sign up for this.
The car’s in this service aren’t brand new even if its current model car no guarantee that you are its first driver. However, premium plans have excellent conditions for cars. There might be some restriction line no smoking inside the car, on using cars as they want to minimize the loss. If you fail these restrictions you have to pay for it.
The concept of leasing and car subscription is quite similar but car subscription is a more flexible and convenient way of car ownership than leasing. Although car subscription has higher monthly fees as leasing might not include tax, insurance, or other fees. Let’s compare them to see what differences they have:
|No down payment||Higher Down Payment|
|No fixed duration||Fixed duration|
|No penalty for changing car||Penalty for changing in mid-contract|
|All-inclusive fees||Might not include tax, insurance, etc.|
|No penalties for small wear tear||Penalties for small wear tear|
|More monthly payment||Less monthly payment|
This depends on your requirements as if you are someone who loves to drive a new car or want a car for a temporary basis then a car subscription is the best option but if you want a car for a long period then leasing is the best option.
These are the brands that offer car subscription services. Not all will qualify for this service and it varies by region and models.