You might already subscribe to Netflix or Amazon Prime… but have you thought about subscribing to a car?
Car subscriptions are now a reality. The idea is simple: you pay for access to a vehicle and the majority of its running costs all bundled into one payment. This is a flexible option for people who don’t need a car all-year round, or for users who want the flexibility to change their car regularly.
What is a car subscription service?
A car subscription service works a little like a mobile phone contract. You pay a monthly payment, either on a rolling basis or over a relatively short fixed period, in exchange for access to a car. That payment usually bundles in most other typical running costs – save for fuel and fluids such as screenwash, or charging if it’s an EV.
As a result, subscribers usually don’t have to worry about arranging insurance, paying road tax or keeping up with scheduled maintenance, because those costs are built into the price of the lease. Make sure to read the small print here, however, because some subscription services don’t include insurance, which you’ll need to arrange yourself.
Is a car subscription a good idea?
Let's quickly look at the upsides and downsides of car subscriptions:
Pros of car subscriptions
- A good option for drivers who only need a car for a limited time
- Bundles most running costs into one simple payment
- Many offer extra flexibility like adjustable mileage limits and the option to change car
Cons of car subscriptions
- Expensive if you want to keep the car in the long term
- Usually restricts shopping around for lower running costs
- You'll typically still have to shop around for your own car insurance
How does a car subscription work?
Look through the selection offered by your subscription provider and choose the car you want to take out a subscription on. Once you’ve done that, they’ll confirm the monthly price, what’s included in the agreement, the length of agreement you’re taking on – usually between one and 36 months – and what your responsibilities will include.
In general, you will be responsible for keeping the car in good condition, so expect to pay for any damage it suffers while in your care. You'll also need to keep below an agreed mileage – be sure to check what your excess mileage costs are before starting the contract.
Near the end of the agreement, your provider should get in touch with you to confirm how you want to close the deal. Here, you’ll probably be offered the choice either to return the car and stop your payments, to extend your agreement with your existing car, or to upgrade to an agreement for a newer model.
Is a car subscription worth it?
That really depends on what you want from a car-ownership experience. If you’re looking for the most affordable way to own a car, subscriptions are unlikely to be the best choice. They tend to cost more on a monthly basis than a PCP finance deal or a lease, and restrict your ability to shop around for roadside cover and maintenance costs.
If, however, you’d prefer the simplicity of bundling your monthly motoring costs into one payment, without the need to hunt around for the best place to get your car serviced, a subscription might be a better choice.
A subscription might also make sense if you know you'll only need a car for a fixed period. For example, if work or family commitments mean living somewhere else for 12 or 24 months, you could consider a subscription for the length of time you'll be based there.
They’re also a good choice if you like to change your car regularly. Many subscriptions give you the flexibility to drive one model for a few months, and then swap it out for something else – perhaps something sportier or more practical as your motoring needs change.
What is the difference between car rental and subscription?
The main difference boils down to the length of time you're keeping the vehicle for. Car rentals are designed for short-term use, usually a few days or weeks, making them ideal for holidays and other one-off occasions.
Car subscriptions, however, are intended for longer-term use, usually between one and 36 months. You'll pay a lower rate for a car subscription than you will for an equivalent rental, but you'll usually have to arrange your own insurance.
Why would you subscribe to a car?
It might seem like yet another subscription to pile on top of your TV, music and gaming monthly payments but a car subscription makes sense for certain types of drivers. In particular, drivers who know they'll only need a car for a fixed period of time, or drivers who like to change their car regularly, may find a subscription is the easiest option.
It's not quite such a good idea if you want a cost-effective way to own a car for the long term, however. Subscriptions can be fairly pricey, and will invariably cost more in the long run than hire purchase (HP) or personal contract purchase (PCP) finance – these are better options if you want a car for the foreseeable future.
Would you rather buy your car?
If a car subscription isn’t for you, why not check out the flexible purchase and finance options Motorpoint offers across its huge selection of nearly new and used cars. For more choices, take a look at our picks for the best cheap-to-run cars.
