Are you the type of person who likes change? Do you find yourself wanting a new car every month? Do you dream of testing out that new Tesla? You may be interested in a car subscription service if you’ve answered yes to any of these questions. Though still uncommon, car subscription services are still a viable option for people who cannot settle on one vehicle for a permanent time period. However, is the hefty price tag that comes with these services worth it? isure has everything you need to know about car subscription services below.
So, what exactly is it?
A car subscription service is similar to a lease, however, it offers you way more flexibility. You can forget tying yourself to a long-term contract or commitment and no longer have to worry about loans or interest payments. A car subscription service allows you to drive as long as you like, pay as you go and return the vehicle when you are finished. Your service will take care of everything aside from fuel. This includes insurance, maintenance fees and the freedom to swap between vehicles.
With this being said, the price of these services do not come cheap. In fact, it’s a tough industry to be in. In the past five years, many automakers have ceased subscriptions, with many startup companies shutting their doors. However, in recent times, many have began to pop up throughout the province, primarily in larger cities, like Toronto. One popular company, Roam, has been a forerunner in car subscriptions within Canada.
How does this service compare against other options? Is it right for me?
If you aren’t ready for the commitment of buying or leasing your own vehicle, a subscription service can be a good option for you. However, it’s important to closely compare a car subscription service vs buying or leasing. Let’s take a look below:
1. Buying vs. a car subscription service
When compared to purchasing a vehicle, subscribing to a service has much more flexibility. There is no major long-term commitments, either. On top of this, you don’t have to worry about any routine maintenance or insurance. However, depending on how long you use your car subscription service for, purchasing your own vehicle may be a method that saves you more money. Think of your cell phone subscription plan. Either you keep paying to essentially ‘rent’ out your phone until you want to swap it out for the newest and latest model. Or, you buy the one you currently have and it’s yours to keep.
2. Leasing vs. a car subscription service
Unlike a lease, a car subscription service requires no financing terms or interest payments to worry about. Simply pay your monthly installment and you are ready to get behind the wheel of your subscription vehicle. When you’re finished with the vehicle, you can simply return it and walk away.
Since you aren’t locked into a specific vehicle for a certain amount of time, you can swap your vehicle now and then determine your wants and needs. With this being said, it is important to keep in mind that depending on how long you use your service for, you may be better off leasing a vehicle instead. Over time, the money will go towards having a car under your own name, and the payments will eventually end. Otherwise, you will continue to pay out of pocket for the latest and greatest.
Where can I get a car subscription service?
There are many companies available throughout Ontario. Some are ran by specific car manufacturers, while others are third party companies. Some car options that are popular include:
Remember, it is important to always do your research before going ahead with a company! Different companies may have different requirements and rules to follow. So, choosing the one that best suits your needs is crucial.
No matter what option you are going for when it comes to your vehicle, having the proper insurance coverage is important. Request a quote or contact isure today!
