Car subscription services are an innovative alternative to traditional car ownership, offering a more flexible and hassle-free way to drive a vehicle. Instead of purchasing or leasing a car, you pay a monthly fee that covers everything from insurance to maintenance. While these services provide convenience and flexibility, they also come with some potential drawbacks. Here’s a breakdown of the key pros and cons to consider before signing up for a car subscription.
Pros of Car Subscriptions
No Need for Dealer Negotiations
One of the biggest advantages of car subscriptions is the elimination of the need to negotiate with car dealers. You can browse online, compare vehicles, and make your choice without the pressure of sales tactics. This gives you the time to do thorough research and make an informed decision.
No Financing or Trade-In Concerns
Car subscriptions are free from the complications of traditional car financing. You don’t need to worry about securing a loan, paying interest, or dealing with trade-in values. Subscription providers offer a wide variety of vehicles for different budgets, ensuring you have plenty of options to choose from.
One Flat, All-Inclusive Monthly Fee
With a car subscription, you pay a single monthly fee that typically includes everything—insurance, maintenance, breakdown cover, and servicing. This can be a significant advantage for those who want to avoid the hidden costs associated with owning a car and keep their monthly payments predictable.
Flexibility and Convenience
Car subscriptions are highly flexible. Most services operate on a month-to-month basis, allowing you to cancel anytime without penalties. Additionally, you can upgrade or downgrade your vehicle as often as you wish, without being locked into a long-term commitment, making it ideal for those who enjoy variety.
A Broad Range of Vehicle Options
Car subscription services often provide a wide selection of vehicles, from various brands and styles to different types and sizes. This is perfect for anyone who wants to try out different cars before making a long-term commitment or simply enjoys driving new models frequently.
Cons of Car Subscriptions
Rejection for Poor Credit
While car subscriptions are not a form of car financing, providers still assess your ability to make payments. If you have poor credit, you may find yourself rejected, although subscription providers are generally less strict than traditional car finance options such as leasing or personal contracts.
Higher Monthly Costs
The flexibility and convenience of car subscriptions often come at a premium. Monthly fees for car subscriptions can be higher than leasing or purchasing a car outright. Since the provider covers most vehicle-related costs, such as insurance and maintenance, this is reflected in the subscription cost.
Limited Mileage
Car subscriptions typically offer a set number of miles per month, usually around 700 miles. While this is sufficient for many, frequent drivers or “road warriors” may find this mileage insufficient. Exceeding the allotted mileage can result in additional charges, often ranging from a few pence to over 30p per mile.
No Modifications Allowed
Most car subscription services do not allow modifications to the vehicle. While you can choose from a wide range of cars, you can’t customize the vehicle to suit your personal preferences. The only exception to this is Care by Volvo, which allows limited configurations, but this comes with a longer commitment and delivery time.
No Ownership
A key downside of car subscriptions is that you will never own the vehicle. If you prefer the idea of eventually owning your car or want to invest in long-term ownership, a subscription service may not be for you. Additionally, car enthusiasts who enjoy modifying and maintaining their cars will likely be disappointed by the lack of ownership in a subscription model.