What are the pros and cons of car subscriptions?

Car subscriptions are a new way to own a vehicle that doesn't have the same headaches as traditional car ownership. They're generally easier to manage, but they come with some downsides. Let's go over some of the pros and cons of car subscriptions so you can decide if it's right for you:

What is a car subscription?

A car subscription provides a flexible, hassle-free way to access a vehicle through one all-inclusive monthly payment. Unlike traditional car buying or leasing, you benefit from short-term agreements with no long-term commitment – your subscription terms include everything from insurance and maintenance to road tax and breakdown cover.

Think of it like Netflix for cars: compare available options, choose your vehicle, and enjoy practical, efficient vehicle access. No large upfront fees, no hidden costs, and customisable terms to eliminate common ownership hassles.

Key Differences from Traditional Options

Unlike buying or leasing, subscriptions reduce upfront costs and eliminate lengthy finance agreements. You can benefit from flexible terms to switch vehicles or cancel with just 30 days' notice, and there's no impact on your credit score since it's not a form of finance.

What's included in your value package:

• The vehicle,
• Insurance,
• Maintenance,
• Road tax,
• Breakdown cover,
• Customisable mileage options,

This straightforward approach means one predictable payment provides everything you need for efficient, hassle-free driving.

Pros of car subscriptions: what you need to know

A car subscription service offers a lot of convenience and flexibility, transforming how many think about vehicle ownership but there are some important things to consider before signing up. Here are the key advantages that make this increasingly valuable for modern drivers:

You don't need to negotiate with car dealers

You don't have to deal with the sales pressure in a dealership. Instead, you can do your research online before you go and compare prices, features and options. You also get more time to think about it and make practical decisions without sales pressure.

You won't have to worry about financing or trade-in values

The subscription provider offers a broad range of vehicles from which to choose, so you'll have plenty of options for different styles and budgets.

You don't need to take out a loan from the bank and pay interest on it every month

 A key advantage of car subscriptions is the enhanced financial freedom car subscriptions provide. That's another reason people love this subscription service - they get all of these perks without having any debt hanging over their heads!

You won't need to consider taking out bank loans or paying ongoing interest, and there are no lengthy finance agreements to restrict your choices. The worry of trade-in value depreciation becomes irrelevant, and you can select from customisable payment plans that suit your budget perfectly. This straightforward approach eliminates many of the traditional financial complexities associated with vehicle ownership.

One flat, all-inclusive monthly fee for everything

A major benefit to a car subscription is that you pay one monthly fee, no matter how many miles you drive (within the agreed mileage). This all-inclusive monthly payment structure offers exceptional simplicity and transparency.

Your monthly payment usually covers everything from insurance and maintenance costs to breakdown cover and servicing. You can even choose flexible mileage allowances tailored to your needs!

Subscriptions are flexible

Another major benefit is the unmatched flexibility in vehicle choice. With only short-term commitments and easy cancellation options, you can customise your subscription length to suit your circumstances. Upgrade, or downgrade, your vehicle anytime, as your needs change, and there's no long-term commitment required, giving you complete control over your vehicle choices.

A broad range of vehicles to choose from

If you're looking to drive a different car every few months or years, this is the subscription that will let you do it. Not only can you choose from a wide range of vehicles in terms of brand and style, but also size and type.

You can switch vehicles to match your changing needs and test different cars before making longer commitments. You'll also benefit from access to the latest model upgrades, ensuring you're always driving current vehicles.

Cost savings through subscriptions

Although car subscriptions are typically more expensive every month than owning or leasing a vehicle, subscriptions are cost-savvy. This is because subscriptions eliminate depreciation concerns and reduce the hassle of shopping for insurance. With no MOT or tax administration to manage, you can enjoy predictable monthly budgeting without unexpected costs or administrative burdens.

You will be able to find a car subscription that suits you

Car subscriptions are particularly appealing to a diverse range of users. They're ideal for professionals seeking flexible transport solutions, families needing practical vehicle options, and business users requiring efficient vehicle management. Essentially, they're perfect for anyone valuing convenience over long-term ownership, offering a modern approach to vehicle access that aligns with contemporary lifestyle needs.

Cons

While subscriptions can make it easier to get a car through flexibility and convenience, it’s important to understand their limitations. Like any vehicle agreement, subscriptions come with their own set of unique challenges and restrictions that might not suit everyone's needs. Understanding these drawbacks is essential for making an informed decision about whether this modern approach to car access aligns with your lifestyle and preferences.

If you have poor credit, you may still get rejected

While subscriptions aren't a form of car finance, providers want to see that you can afford the monthly payments. While providers are generally more flexible than traditional car finance companies, they will be less stringent than PCP, HP or leasing providers, they still need to verify affordability, meaning those with poor credit histories might face restrictions or rejection.

The cost per month may be higher than leasing a car or buying one outright

Car subscriptions are a great way to get your hands on new wheels, but the monthly payment can be high. These typically exceed traditional leasing or outright purchase options primarily because the all-inclusive nature of subscriptions reflects insurance, maintenance, and other services in the payment structure. The costs are also reflected by the fact you don't have to pay a large deposit upfront, and the subscription provider is responsible for most car costs.

The higher monthly cost might not provide the best value for everyone.

The included mileage may not be enough for some

While most providers offer at least 700 miles per month as standard, this may not be enough for those road warriors who like to drive!  On the other hand, you can add more miles to your subscription which is normally between 4p and up 30p per mile. Excess mileage is also charged if you go over the pre-agreed mileage. This ultimately means you need to carefully consider your driving habits to avoid excess charges.

You can't modify the car (in most cases)

Whatever car is available, that's what you can order and subscribe to. So far, Care by Volvo is the only subscription provider that allows for configuring your car. But with that comes the longer-term commitment, starting at three months. Plus, configuring the car to your likely normally adds a few more weeks to the delivery time.

You will never own the car

The most significant consideration is that subscriptions never lead to ownership. If you want your hard-earned cash to go towards ownership of the vehicle, then subscription is not right for you. If building equity in a vehicle or having the freedom to modify and maintain it yourself is important, a subscription model might not provide the best solution for your needs. Or, if you like owning your cars, tinkering with them and fixing them yourself, look elsewhere. This makes subscriptions more suited to those who value flexibility and convenience over long-term asset ownership.

Final word

We hope this article has helped you understand the benefits and drawbacks of car subscriptions. If you're still interested in trying one out, we recommend signing up for one month. The best way to see if a service is right for you is by experiencing it firsthand!

This is a short read, so be sure to read our in-depth guides:

• What affects the price of car subscription?
• 5 good reasons to get a car on a subscription
• How mileage works with car subscriptions