Typically, most people would opt for car loans or dealership financing when they acquire a vehicle. But car subscription is now becoming a popular option.
If you’re looking to drive something new without the same long-term commitment, this approach to car ownership could be right up your alley.
Table of Contents
What Is a Car Subscription
Unlike traditional car leasing, car subscriptions provide you with flexibility in terms of duration and payment quantities—you can adjust your plan as needed. This is a good option for businesses that need a fleet of cars.
In a car subscription, you pay for access to a vehicle/s for an agreed-upon period of time, instead of actually buying the units. Think of it as a combination between car ownership and car rental.
Car subscription companies offer this service to include maintenance and insurance, so you do not have to worry about going over mileage limits or wear and tear charges. Plus, they would even allow you to switch car models if needed, which is not available with car leases.
Why Is a Car Subscription a Good Way to Own New Vehicles
A vehicle subscription service offers invaluable benefits that you will not get from car loans or leases. Here are those which make it a great option.
1. Affordability
Car subscription services are usually more affordable compared to other vehicle financing options.
How?
First of all, the initial cost would be much lower than a car purchase. And, as previously mentioned, it is all-inclusive, so your subscription could include maintenance, insurance, and other add-ons.
Think of it this way. When you purchase a car through a loan or dealership financing, you will have to pay for car insurance, car maintenance, and repairs separately. With car subscription services, you would not have to worry about these expenses.
2. Flexibility
With car subscriptions, you can enjoy the flexibility to own a car for as long or as short as you need it. This is pretty convenient if your business needs car fleets for specific campaigns or projects.
Plus, you can choose to get various makes and models of vehicles depending on your needs. Whether you need a luxury car or a van to accommodate more passengers, car subscription services will be able to provide that.
3. Freedom from Depreciation Costs
When car owners decide to return a vehicle to a dealership or car lease company, they face costs related to car depreciation. This is because these businesses would count the unit’s age and mileage against its original price when estimating its value.
In car subscription services, you will not have to worry about this since you are only paying for access to a car without actually buying it. So, no matter how much the car depreciates in value over time, you can simply turn it back into the car subscription company whenever your contract ends.
4. Ability to Own the Latest Models
Do you want to own the latest makes and models without having to pay the full price? When you subscribe to this monthly car service, you can enjoy all these benefits.
Since car subscription companies would provide fleets of cars that update every few months or so, you will be able to drive the latest units as soon as they are released.
So, if your car is getting a little outdated—no problem! You can just return it and get another updated unit anytime you need one.
5. Freedom to Pause and Resume Payments
Companies that offer car subscriptions are very owner-friendly. This means that you can pause or resume car payments anytime you need to, which is not the case with car loan payments.
So, if you have an emergency or other financial concerns, you can simply put your car subscription on hold until a better time comes along and pick up from where you left off when ready.
6. On-Going Support from the Subscription Company
Last but not least, car subscription companies would provide ongoing car care and troubleshooting support. You can call in for help with car issues anytime you need to.
Also, they are always open to car owners’ feedback. This is beneficial as they want to make sure that their members are satisfied with the service they provide.
Choosing a Subscription Car Service: Things to Keep in Mind
While a subscription car service is a smart way to own a car, it is still important to do your due diligence when choosing the right option for your needs. Here are the essential aspects you should look into.
Plans and Packages
The best car subscription plan would be something that truly fits your needs. So, make sure to compare packages and select the one that offers you the most value for your money.
Accreditation
Of course, you should only deal with a company that is accredited to offer these types of car memberships. Look up car subscription companies online and check out their reviews to make sure they are legit.
Better yet, they should be a member of an authorized body for car rental companies, such as the Australian Finance Industry Association.
Vehicle Models Available
A good car subscription service should have the types of vehicles that you need, whether it is for personal or business use. So, when checking a company, always check out the models they have available on their list.
Insurance Coverage
Since car subscription services are a type of car rental, they should have insurance policies that cover owners in case of an accident. This way, you can drive with peace of mind knowing that you are protected in case of car damage or other car-related issues.
Location
Choosing a car subscription company that is far away from where you stay could be a hassle and could cost you more money. But with a service that is just within your city, it would be easier for you to access their services.
Car Subscription FAQs
Q: Are car subscriptions for everyone?
A: Yes! Car subscriptions are great for car owners of all needs and budgets. Whether you need a car for personal use or business, car subscriptions can provide you with the car you need.
Q: How long does a car subscription last?
A: The length of car subscription plans depends on the service provider. Generally, car subscription contracts range from one month to two or three years.
Q: Can I cancel my car subscription early?
A: It depends on the car subscription company that you signed up with. Most companies allow their customers to adjust their car subscriptions or even cancel them early if they need to, but there might still be cancellation fees involved depending on the provider’s terms and conditions.
Q: What happens when my car subscription ends?
A: You can either choose to renew your contract or turn in the car and end your subscription with no extra costs. Some car subscription companies may offer special deals for extended contracts, so make sure to ask about this as well.
Also Read: Things To Consider When Taking Out A Loan For Your Business
Final Thoughts
Car subscription is an innovative vehicle ownership option that allows you to get the car/s you need without breaking the bank. It is great if you want convenience and flexibility, as well as if you are on a budget but still need access to reliable vehicles.
Just make sure to compare car subscription services and read carefully through their policies before signing up. Then, enjoy your new vehicle!
For more useful tips and information on car buying and ownership, feel free to check our other articles!