The vehicle industry seems to be advancing at an alarming rate. Well, we can accredit this change to the need and importance of having a car in today’s world. But, when we talk about car ownership, there are some terms that you are likely to come across. We are going to focus on car subscription vs car leasing.
Between the two, car subscription is the most recent form of car ‘ownership’ to be introduced. It is a whole lot similar to leasing a car only that there are a couple of differences. Are you stuck wondering which in between the two is better? This article will help you compare between a vehicle subscription service and a car lease. By the end, you will be able to make an informed decision.
What’s the Main Difference between the Two?
Before we dive into the difference, you have to know that in a car subscription service, you don’t own the car similar to when you lease one. However, you are granted permission to use a vehicle for an all-inclusive monthly fee. This fee entails maintenance, insurance, and other factors. On the bright side of the car subscription is that some service providers allow you to change different cars within a specified period.
Leasing a car, on the other hand, is just like renting. That is, you visit a car dealer, pick a car and then use that car for a certain period. In most cases, it’s usually between two to five years. Then you and the dealer agree on a certain fee to be paid. This fee is generally determined by the estimated mileage to be covered, the period you are going to use the car and finally the model of the vehicle you have picked.
To some users, leasing was the better option because it enabled you to combine all motoring expenses into one. However, car subscription has completely replaced that because it is proving to be more convenient, flexible and who wouldn’t mind driving different cars during the course of the week?
Car Subscription and Leasing Services
Leasing services are provided by car dealers who focus on leasing services. There are thousands of leasing agents out there. If you have never seen such a company in your local town, a simple Google Search can lead you to some.
Car subscription services are mostly offered by car manufacturers. For example, Access by BMW Subscription Service was launched on April. Later in September, Audi Select also introduced this service.
A lot of car making companies have incorporated this service in most of the major countries and cities. Volvo and Jeep have also followed suit. Some dealerships have also included car subscription services in their business.
Is Car Subscription a Better Alternative than Leasing?
Judging from the growing popularity of car subscription we can conclude that it is a much more convenient way of ‘owning’ a car than leasing. However, you have to be aware that a car subscription costs more than a lease. The cost of the subscription will depend on the model and the length of use. Not but to mention, a lot of car dealers are getting into this type of investment.
Car subscription, despite being a new trend in the car industry, it’s proving to be quite simple and efficient. It has come as a massive blow for car leasing agents. Subscribing does offer flexibility and variety. No wonder it has caught the eyes of many. Nonetheless, there are some who still prefer to lease because it’s much more affordable.