Car subscriptions and car leases are the ways to rent a car without burdening your pocket. Both these concepts to use a car are quite similar, but they also differ in numerous ways. Some of the common factors are ease, flexibility, and monthly packages.
In this article, we will discuss car subscriptions and car leases as well as the benefits and disadvantages of both.
What Is A Car Subscription?
A car subscription is a new way to rent a car by opting for an all-inclusive subscription package. You pay monthly subscriptions to get a car that suits your specific requirements. Whether you want to rent a car for the short term or long term, all you need is to fill up the form.
Usually, the subscription tenure varies between 12 months and 60 months, based on the signed contract. Most subscription packages include insurance coverage, breakdown charges, servicing, and maintenance fee.
Pros Of Car Subscription
Short-Term Rentals: Car subscription packages are easy to opt for as you can sign a short-term contract as per your needs. You can swap the car easily for varying purposes such as going on a tour, formal meetings, and more.
Wide Range of Cars: With car subscription services, you get a wide variety of car models to pick from. So, identify your needs and the features you are looking for and get your favourite car at the best pricing package.
All-inclusive Package: When you pay for your monthly package, not only do you get a car, but the insurance, maintenance, servicing road tax, and breakdown coverage. So, you don’t have to worry about additional costs.
Cons Of Car Subscription
Limited Mileage: Your car subscription package may give you limited mileage, for example, 1000 miles a month. You may need to pay an excess mileage fee if you drive your car more in any given month.
What Is Car Leasing?
Leasing a car is a more traditional way of renting a car that starts from a relatively longer tenure such as 24 months. You can sign a car lease agreement for a fixed term that varies between 24 months and 48 months.
When you lease a car, you need to pay maintenance, insurance, servicing, and other charges. Plus, you need to make the initial payment for 1 month or 12 months. The bigger the initial deposit, the lower will be the payments.
Pros Of Car Leasing
Take A Test Drive: Leasing is an easy and flexible way to rent a vehicle for the long term. You can take the car for a test drive to see if it meets your expectations before you make any initial payments.
Easy & Affordable: Car lease companies are usually flexible with their customers. The lease terms are not rigid and you can tailor the terms by discussing your requirement with the company before Signing the contract.
Drive the Latest Model: When you lease a car, you can swap the vehicle with the latest model, depending on the lease terms. This way, you get the opportunity to drive the latest car model without making any large investment.
Cons Of Car Leasing
Long-Term Agreement: When you lease a car, you need to sign a long-term contract. Usually, road tax and maintenance charges are excluded, so, you must read all the lease terms carefully before signing the contract.
Since the benefits of a car subscription outweigh its disadvantages, you must give it a try once.