Car Subscriptions in Focus

March 16th 2024 Luis Gregan, Automotive Retail Inside

In a rapidly evolving world, flexibility and convenience have become vital, especially when it comes to car ownership. In recent years, a new trend has emerged—car subscriptions. This innovative way of car access has revolutionised how people own and utilize vehicles.

What is a car subscription?

A car subscription is a service that allows users to lease a vehicle for a defined period, typically one month to a year, for a monthly fee. In addition to leasing, car sharing, and rental cars, car subscriptions have emerged as an option for flexible mobility without the immediate need for car ownership.

Many providers promise all-inclusive packages with prices that cover everything, including various vehicles with different horsepower options. Customizable mileage packages are also available to suit your needs.

While you can sign up for a car subscription online, a credit check is required before you step into your new Mercedes, Audi, or BMW. The subscription model is gaining more and more followers and is worth examining.

What to know before signing up for a car subscription

° Subscription Lengths: Offered from 1 month to 3, 6 or even 12 months. Shorter options allow for more adaptable coverage of various mobility needs.

° Mileage Packages: Those who drive more wear out their vehicles more quickly. Subscription providers take this into account by offering multiple free mileage packages. However, the higher your mileage, the higher the monthly rate. You always have to keep your chosen mileage in mind while driving.

° Access Restrictions: Not every provider welcomes novice drivers; they may require several years of driving experience or impose minimum or maximum age requirements. Some only partially open their offerings to very young drivers.

° Country: Often, you are only allowed to drive the vehicle within particular countries. Some EU member states may even be off-limits. Inform yourself if you plan to drive a car abroad.

° Service and Locations: The subscription cars are usually at your provider's headquarters. Depending on your place of residence, this may mean a long journey. Home delivery (though at a cost) is almost always possible. Pay attention to maintenance and inspection conditions.

° Insurance: Third-party liability insurance is primarily included in the subscription package. The providers charge a flat rate that does not consider individual bonuses. If you've been accident-free for many years, you may end up paying, while drivers with a history of accidents and novice drivers may benefit. Typically, you're fully and partially insured with a car subscription, sometimes with additional coverage for parking damage and glass breakage.

The Future of Mobility

If you need a car for a short period, the subscription model is usually your best choice. It's cheaper than a rental car and just as uncomplicated. More and more companies are discovering car subscriptions as a practical alternative to company leasing. The short terms allow the fleet company to make a less bureaucratic effort. Thanks to flexible subscription terms, testing your desired vehicle beforehand is no problem.

Car subscriptions could play a vital role in the future of mobility. With a growing trend towards resource sharing and an increasing demand for flexibility, these services perfectly cater to the needs of modern consumers.

Furthermore, they could facilitate the transition to more sustainable mobility solutions by making it easier to access electric and hybrid vehicles while, reducing dependence on traditional car ownership.

Unlike traditional car buying or leasing, car subscriptions include all-inclusive service packages covering maintenance, insurance and even the option to swap vehicles. This makes car ownership process stress-free and transparent, as users don't have to worry about separate contracts and services.

Since car subscriptions regularly update their vehicle fleers, subscribers often have access to the latest car models and technologies. This allows users to stay up-to-date and enjoy the benefits of state-of-the-art safety and convenience features.

Car Ownership can involve high upfront costs and unpredictable maintenance expenses. Car subscriptions, on the other hand, offer a clear monthly fee, allowing users to better plan and control their expenses.

Conclusion

As convenient as the car subscription model may be, the car doesn't belong to you. You are not allowed to make structural changes and must repair every scratch. If you have a specific preference regarding color or equipment, you may have to search for the ideal subscription longer than expected.

But in the end, you are potentially just one click away from your dream car!