Have you ever heard of automobile subscription? This new trend has been revolutionizing the automotive industry for the past three years. It allows motorists to use a car without owning it, but by renting it by the month. If we had to summarize, this service works like a telephone, internet or Netflix subscription: You rent the vehicle for a given period in return for a monthly rental fee. You can choose the length of the commitment, the mileage and the options included, allowing you to control your budget and drive the car that suits you.
Principle and advantages of a car subscription
The concept of the car subscription is simple: to provide users with different models of petrol, diesel or electric cars for a flexible period starting from one month up to two years. This is what differentiates this offer from conventional car rental, which generally lasts only a few days. If you’ve always wanted to drive luxury cars, but lacked the budget, like car leasing in Switzerland, this could be the alternative to make your wish come true.
This new formula combines multiple advantages. For a start, it lets you finally drive the car of your dreams. Market operators offer a wide range of vehicles, including top-of-the-range sedans, compact sedans, SUVs, electric cars and more.
Secondly, the contract is very flexible, as it offers more freedom and flexibility. You can configure options and freely determine the duration of your subscription. The formulas are “all-inclusive” and therefore include all costs related to the use of the vehicle except fuel. The subscriber no longer pays for insurance, maintenance, repairs, registration fees and roadside assistance. Your only expenses: your monthly fee and your fuel or battery charge if it’s an electric car.
Subscription vs. leasing
There are many similarities between car subscription and car leasing. The main differences lie in the duration and terms of the contract. With leasing, your commitment is spread over at least 2 to 5 years, and the longer commitment period means lower leasing costs than with a car subscription. Whereas with a car subscription, lease is possible from as little as one month out. And while leasing allows you to pay an initial down payment, which reduces the monthly leasing instalments, this is not possible with the subscription formula.
The main advantage of the car subscription is that you can terminate your contract at any time. At the end of the minimum contract period – usually one, three, six or twelve months – you can cancel the contract, with a very short notice period, usually just one month. You may or may not change vehicle. Otherwise, the contract is automatically renewed for the following month without you having to do anything else. This flexibility is lacking in leasing contracts, where all conditions are fixed in advance and, in some cases, cannot be changed until the end of the lease.
How much does a car subscription cost?
The monthly fee for a car subscription naturally varies according to criteria such as vehicle type, duration, mileage and options selected. The basic packages specify a fixed mileage and cover registration, insurance, taxes, maintenance, repairs and inspections. Other services can be added according to your needs, such as delivery of the vehicle to your home or workplace, but these will also influence the monthly rate. The range goes from 200.- Chf/month to over 1500.- Chf/month for top-of-the-range cars.
However, you should be aware that longer-term leasing allows you to benefit from sliding-scale payments. You don’t pay for the vehicle or the acquisition costs, but you use the vehicle for, generally speaking, more than you would with a lease, because the commitment period is shorter and you can’t reduce the rental amount by making an initial down payment.
To save money, we advise you to compare the offers of the different operators, in particular the options included in each contract and the rates. If you’re looking for an alternative to buying a car, and especially if you only need a car for a short time, a car subscription may be an interesting solution to consider. You should also be aware of subscription fees, extension fees and notice periods.
How do I take out a car subscription?
Several online platforms offer car subscription in Switzerland. A search on the Internet will quickly turn up companies specializing in car subscriptions, such as Carify.com.
Most car manufacturers also offer this car subscription solution. When you apply for a car subscription at a dealership, you can compare this solution with leasing on the model you’ve chosen. This will enable you to quickly understand the advantages and disadvantages of each formula, car leasing or car subscription.
Conclusion
Whether you take out a car lease or a car subscription, it’s important to know that you won’t own the vehicle. Although a car subscription is easier to interrupt than a car lease, this solution is advantageous in the case of a short-term subscription. Indeed, if you wish to have a vehicle continuously for one or more years, leasing will certainly be less expensive. And, if you ever wish to terminate your leasing before the end of the contract, LeaseTransfer will help you in this process by avoiding penalties for early termination of the leasing contract thanks to its 100% accompanied service.
