Many of us have fond memories of buying our first car. It was something special and you often left quite a bit of money at the dealership. However, times have changed and there are now several ways to rent a car.
Several companies, including automakers, have developed subscription models that target consumers who are less interested in ownership and more interested in convenience. And it's not just Millennials who are jumping on the bandwagon.
What is a car subscription service?
A car subscription gives you more flexibility in driving than leasing or buying. An example of this is Wihop. Subscription services vary greatly in their scope and structure. Some are similar to traditional leasing, while others allow you to change your car on a regular basis. For example, many manufacturers offer their customers the opportunity to drive a different luxury car every week. With Wihop, the minimum term is 6 months.
Most services offer a variety of vehicle types, from SUVs to electric cars. Most offer subscription services via mobile apps, with ease of use a key selling point. This convenience-based service aims to change an industry that has been in a similar situation for decades.
How much does a car subscription cost?
Car subscription fees vary from company to company. In general, car subscriptions cost more than traditional leasing, although some companies offer a similar service. The cost depends on a number of factors, u. a. Of the type of car you want to drive and mileage. For example, many services have mileage limits, but you may be able to pay more if you set a higher mileage cap.
Monthly payments for car subscriptions can range from less than 400 euros to more than 2000 euros. At Wihop there are smaller cars from just under 400 euros.
Most subscription programs include a fee in the upfront monthly payment. This usually includes insurance, roadside assistance, taxes and general maintenance. Most companies also charge an initial registration fee. This is comparable to the down payment when leasing a car.
Advantages of car subscription services
The first potential advantage of a car subscription is flexibility. For many drivers, not being tied to a multi-year lease is attractive. Most subscription car services can be canceled at any time, and in many cases the lease begins after one month. If you only need a car for a short period of time, a subscription can be a good option.
For some drivers, owning a car may not be as important, and the ability to change cars on a regular basis is attractive. With the subscription service, you can choose from a range of vehicles. You also don't have to worry about maintenance, which is usually covered by the subscription. The monthly subscription fee often includes a range of services such as regular maintenance, roadside assistance and in some cases car insurance.
Possible disadvantages of car subscription services
Vehicle subscriptions are not for everyone. There are fairly strict mileage limits in most contracts, which can be detrimental to drivers who do a lot of driving. Driving in other countries is not always an option either, and some companies limit the number of licensed drivers.
Remember that technically the car does not belong to you. The condition of the car must be taken into account when you hand it over. Smoking is not allowed in the car. For more information on what is allowed with car subscription services, check the terms and conditions, such as Wihop's.
Car subscription services and car insurance
Usually the cost of car insurance is included in the monthly fee. This is especially true for the services operated by the manufacturers. You may need to purchase your own car insurance from other companies. This is explained in more detail in the company overview below.
Conclusion to the car subscription
Whether a car subscription is right for you depends on a number of factors. Appreciate the flexibility of being able to drive a different car every month? Would you like unlimited mileage? Is the service available in your area? If you like to change your luxury car daily and don't mind a monthly fee, then a service like Porsche Passport may be for you. If you are looking for a long term but flexible working relationship, Wihop could be right for you.