Are you someone who needs a change on a regular basis and the leasing contracts are just a little too long for you? Then a car subscription could be just the thing for you. But what is behind it and reasons why you should decide for or against it, you will find in this guide.
Subscribe to cars: alternative to leasing & buying
As with a streaming provider, you conclude a usage contract when you sign up and pay a fixed sum to the service provider every month. You can then use the vehicle for this – how long depends on the provider. The Minimum terms of the contracts vary between one month and two years, but some manufacturers also offer a monthly notice period after a minimum contractual term of 6 months. After the conclusion of the contract, the vehicle will be brought to your home, the return will be made either via a pick-up service or with the provider. Depending on the service provider, you can even have the vehicle exchanged during the contract period.y
If you have a car subscription, you do not have to worry about taxes, registration and insurance, nor about visits to the workshop for repairs, maintenance or tires. In the event of an accident, a previously agreed deductible is due, otherwise you are protected. All you have to worry about is the fueli.e. petrol, diesel or electricity depending on the model (source: computerbild.de)
Trusted Vendors can be found in this guide: These include Sixt (to the provider), Autoscout24 (to the provider), Europcar (to the provider) or LeasingMarkt (to the provider).
Advantages & disadvantages of the car subscription
Car subscriptions are becoming increasingly popular as they allow you to avoid many of the hassles that surround both buying and leasing a car. These include, for example the long waiting times – E-cars in particular are real rarities on both markets. For some models you have to wait almost a whole year before you can sit behind the wheel for the first time.
Also are the Terms of the contracts significantly shorter than, for example, with leasing: you are free to change the vehicle if you do not get along with the car or if your requirements for your car change. That offers flexibility.
A third benefit is that with the monthly payment all additional costs of the vehicle are compensated – with the exception of fuel costs. This includes motor vehicle tax, registration, vehicle insurance, tire services, engine maintenance and the replacement of wearing parts. Compared to buying, as with leasing, drivers also avoid the depreciation of the vehicle, which hurts buyers of new cars in particular (source: businessinsider.de).
Of course, there are not only positive sides. A sticking point is the price. The fees that you pay to the provider each month are significantly higher than with leasing. The old rule applies again: the shorter the term of the contract, the more you ultimately pay.
This is where the second disadvantage comes into play, because the providers set the maximum monthly mileage. This means that, unlike leasing, you can’t schedule when you drive and how much. You have one per month maximum number of kilometers that you should not exceedOtherwise it can get really expensive.
You also have fewer options when it comes to customization – in most cases you can only pre-configured vehicles choose. You will probably have to do without your desired color.