Now You Can “subscribe” to a Car Instead of Buying or Renting It
If you needed to buy a car in this inflation-ridden hellish market , you may be looking for a solution to your problems. In addition to buying and renting, there is now a third option: a car subscription. A “subscription” car is designed to be more affordable than a rental and more flexible than a rental. However, in its current state, the car subscription model is probably not worth the trade-offs that come with it. For car buyers avoiding a long-term commitment, here’s what to know about car subscriptions as an alternative to leasing.
What is a car subscription?
With the general consensus that you should probably never rent a car , a car subscription promise is a flexible, short-term deal that combines the benefits of leasing with the benefits of renting. However, this alternative to buying or renting is not a completely new concept. While major car manufacturers have offered car subscriptions in the past, the business model is picking up again thanks to third-party startups.
Car subscription differs from leasing in that you are not tied to a specific term ( usually two to five years ). Instead, you can subscribe on a monthly basis, regularly trying out a new ride on your own. In addition, subscription companies handle things like maintenance and insurance.
So, is a car subscription right for you? The answer depends on how much you are willing to spend on the promise of flexibility.
Compromises are probably not worth it
While the monthly subscription model may seem attractive, the current state of car subscriptions is a limited market with fairly high prices. According to Money.com , monthly car subscription payments can cost 30% or more than the monthly rental payment you get for the same car .
It’s worth noting that the subscription cost does cover the extra costs you’d be stuck with a rental car, namely the cost of insurance on top of your monthly payment. However, even after these additions, most car subscriptions will cost you more in the long run .
The bottom line is that while car subscription sounds like a promising alternative to leasing, it’s not yet widespread enough to offer competitive prices. If the appeal of trying out a new car every month is more important than affordability, then go for it. But for most drivers, the flexibility and variety of a monthly subscription just isn’t worth the price. Instead, you’re better off using the traditional ways of renting or buying .