For those looking at Car Subscriptions, it’s difficult to see past the monthly rental and trying to weigh up whether subscribing to a vehicle is value for money. Vehicle ownership whether it be cash, hire purchase or a personal contract purchase (PCP) can have hidden costs long with unpredictable expenses, by subscribing you pay out one monthly payment with all of the essentials bundled up.
Today we’re going to look at 5 things that car subscriptions avoid:
Maintenance, Servicing & Repairs
Maitenance of a car can really add up and we’ve seen a huge increase in pricing of dealership services and repair work, with labour costs being higher than ever.
Need a new tyre? Most modern tyres can be in their hundreds and it is vital that you don’t skimp on quality, for the safety of yourself and your family.
Whilst it’s great to purchase a new car, the warranty will only last for so long, once this has expired it’s your purse or wallet that will take the brunt.
With a vehicle subscription your monthly fee includes servicing and maintenance, this means that routine services and any unexpected repairs are covered by the provider, so long as it hasn’t been caused by accident or driver negligence.
Insurance is a legal requirement in the United Kingdom and can be an extremely costly area, especially if you choose a vehicle that appears in the most stolen cars sector. Insurance costs can differ depending on your location, age and your claims history. Plus if you have any penalty points on your licence, you can watch your premiums rocket.
Some car subscription providers include insurance as standard or as an option. Depending on your personal circumstances, having an insurance-inclusive car subscriptions isn’t cost effective, (read the article) but can help those who are looking for a fixed cost on a monthly basis.
Road Tax
Road tax is a recurring cost when you own a vehicle, depending on your vehicle the costs can be very reasonable up to eye-watering. Even if you own a low emission or electric vehicle, from 1st April 2025 all vehicles will need to pay the same vehicle excise duty.
With a car subscription road tax is included for the duration of the contract and if you go for a high-end model, avoids that costly showroom tax that is levied.
Depreciation
Depreciation of certain models has been headlines recently in the press, with electric vehicles taking a massive hit and even Land Rovers due to them being prone to being stolen (although Land Rover is rolling out security updates).
When you purchase a vehicle, people often overlook depeciation yet it is one of the biggest factors of owning a vehicle. A new car can lost between 20-30% of it’s value in year one. Whilst it is always better to keep a car for 4/5 years to balance this out, sometimes there are requirements to dispose of a vehicle, maybe due to a being in a growing family or a job change.
With a car subscription, whilst you don’t own the vehicle, depreciation is down to the subscription provider. With your monthly payment, you are paying to access the vehicle and it not only allows you to drive the car, but gives you the flexibility to upgrade or downgrade with ease and very little commitment, which leads us on to…
Flexibility
Owning a car via cash or a finance product ties you down to a long-term commitment, unless you’ve chosen right and your car has had a boost in it’s residual value, if you need to swap the vehicle after 18-months, you might find that you are in negative equity or if you are in a lease, you may need to pay an early termination fee to send the car back early.
Car subscriptions are flexible, well at least they are supposed to be. Rolling month-to-month car leases that allow you the flexibility to send the car back, upgrade or downgrade with absolute ease.
If you change your car on a regular basis, this can save you money based on many of the factors above. You’re never stuck with the vehicle and should circumstances change, send it back.
Subscribe to your next car
We’ve today looked at 5 things that car subscriptions avoid vs. vehicle ownership. From the depreciation of the asset to the scary thought of unpredictable repair and servicing costs. We’ve even touched on insurance costs.
Whether you need a supermini to zip around town or a luxury car to trump the neighbours, car subscriptions are a great and affordable way to run a flexible car lease.
Check out the subscription providers on our website and compare them side by side to see which company works best for you.
Don’t forget to check out our latest car subscription deals.
Subscribe to a Van
Don’t forget, that all of the above also applies to commercial vehicles and a van subscription could be ideal for your business in this ever changing marketplace.
See our Van Subscription page for further details.
