What if someone told you that you can have your favourite Mercedes CLS in your backyard within a couple of hours of ordering? And what if you can get it without paying the car’s overall price or applying for a bank loan? Isn’t that amazing? But how?
You must have heard about car subscription services which is quite a hot topic nowadays in the automotive industry. It covers everything from road tax and servicing to insurance to breakdown charges. Want to know more about this car financing option?
What Is A Car Subscription?
Car subscription service allows a customer to drive home a car in lieu of monthly payments. Customers can have full access to their favourite cars without having to pay any down payments. It’s a low-commitment way to get a car when you want it.
It works the same way as other subscription services such as Netflix, Spotify, or Amazon Prime. With car subscription uk services, you get comprehensive insurance, servicing and maintenance, breakdown coverage, 1000 miles per month, and much more at an affordable monthly fee.
Why Car Subscription Services Are Becoming Popular?
Having a car is a necessity but buying a car is a complex process. Subscribing is much easier and more reasonable than buying a car as you don’t have to pay a huge amount of money. When you buy a car, you pay a large upfront cost; however, the value depreciates as soon as you drive the car away from the dealership.
Leasing a car is another popular way of buying a car. Although you need to sign fixed-term contracts with a considerable fee for early cancellation. Many car leasing services exclude road tax, so you must consider additional costs. Car leases are usually affordable, you must read the contract agreements carefully.
A car subscription is an alternative affordable way to own a car. With short-term contracts and simple-payment terms, you get the car you want in relatively less time than buying a car. All-inclusive packages make car subscription services a popular option.
How Car Subscription Is Different From A Car Purchase?
The decision to subscribe or purchase a car depends upon your personal preferences. Though car ownership has significant benefits, car subscription suits people with budget constraints.
Cost Of Car Subscription Vs Buy
When buying a car, you need to pay huge costs upfront. Plus, you require a good credit score for financing the vehicle. Buying a car requires long-term financial commitment right from the beginning.
If you go with a car subscription, you would not require a huge initial investment, you need to pay the higher monthly fee though. Most subscription packages include insurance, roadside assistance, maintenance, and similar services.
Apart from costs, there are other factors you must consider when selecting between a car subscription and a car purchase. These factors include depreciation, equity, and credit score.
Before signing the contract, don’t forget to check the monthly package to learn what’s included and excluded to make an informed decision.