Car Subscriptions: What Are They and How Are They Changing the Car Industry?

Decision anxiety plagues many car shoppers. Buying or leasing a vehicle is a big decision that directly affects your future. What if you make a choice that seems good in the moment, but you come to regret it after just a month? Or what if a better vehicle becomes available right after you sign the lease or purchase agreement? You don’t want to make the wrong choice, but with such a vast variety of car models to choose from, you might wonder if it is even possible to make the right choice.

Suppose you’re looking for an alternative where you can take the time to decide on a car while satisfying your need for transportation immediately? A car subscription might be an appropriate service for you.

What Are Car Subscriptions?

Car subscriptions allow customers to drive new cars without buying or even leasing them. Instead of being locked into having one car for a long time, you can have access to a selection of different vehicles for only a monthly fee – no lump money sum required.

Drivers that subscribe are also offered a flexible exchange rate. While leases have a minimum of a two-year contract, subscribers can swap one model for another on a monthly basis, or even sooner if desired. And if they find the perfect car and are ready for a longer commitment, drivers can cancel the subscription anytime.

This business model makes renting a car as convenient as picking a streaming service, offering flexibility previously thought unimaginable in the car industry.

The Benefits of a Car Subscription

There are more pros to a car subscription service than its accessibility. One of its biggest benefits is that it will cover most of the headache-inducing expenses that come with owning a car for you, including maintenance, insurance, roadside assistance and tire repair. The subscription service will handle car upkeep costs without charging you fees in addition to the monthly rate.

They will also cover every state’s minimum car insurance requirements, meaning you won’t need additional insurance with your subscription. However, if your current insurance covers more than what the subscription offers, you may want to keep it. 

If you’re looking for a more affordable option, you can opt for a used car subscription instead of a new one without sacrificing quality.

The Cons of a Car Subscription

There are some downsides to having a car subscription. In the long term, a car subscription is more expensive than leasing or buying. You’re also completely giving up:

• The chance to ever build equity in the car, truck or SUV you rent
• Improving your credit through loan payments
• Having agency over your vehicle as a piece of your own property

The limited availability of a car subscription can also be a problem. Due to its recent emergence in the industry, car subscriptions aren’t readily available across the country, so you might not have the option depending on your location.

Another major con is the cost. While the monthly fee offers a flexible alternative to a lease agreement, it can result in higher expenses. A car subscription factors the cost of insurance, maintenance and other services into the fee. Ultimately, the subscription company generates profit by charging subscribers more than what all those services (and the vehicle) are actually worth. There may be other inconveniences as well, like not being able to opt out of their insurance.

How Are Car Subscriptions Changing the Car Industry?

The practice of car subscriptions is becoming increasingly popular across the industry. The convenience of choosing from a selection of cars for any period with maintenance fees covered, all for one monthly payment, is an appealing proposition for many indecisive car shoppers.

This trend is affecting more than just the purchasing side of the automobile industry. For instance, the subscription model of trying out different cars instead of owning them might reduce the demand for manufacturing new vehicles.

Car subscriptions fit with the behavior of modern consumers. We are in the generation of subscriptions. Many across the globe continue to prefer to explore a vast collection of options instead of buying something, and if that sounds like you, then this might be an appealing option, despite the added expense and downsides.

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If you’re ready for an affordable, long-term purchase or lease of a pre-owned vehicle, Direct Car Buying, powered by Easterns Automotive Group, is here to assist. Select from thousands of pre-owned cars, trucks and SUVs, or even customize your own with the help of a personal car shopping concierge. Whether you want to buy online or in person, we’ll help you walk away with a vehicle you’ll be happy with.