Why Subscribe to a Car? The Six Benefits of Car Subscription Services

Explore the growing trend of car subscriptions in this detailed guide. Uncover the unique advantages and flexibility that car subscriptions offer, from cost-saving opportunities to personalized options, and learn why it's becoming a preferred choice for modern motorists.

George Skentzos

Head of Customer Experience
 @ Loopit.co

Published on 

August 3, 2023

  ·  

Last updated on 

August 3, 2023

Key Takeaways

Car subscription services are becoming an increasingly popular alternative to car ownership, as well as traditional car rental options. Unlike traditional car rental, car subscription allows you to enjoy the benefits of having a car for an extended period of time without the commitment and costs associated with car ownership.

In this article, we will provide a step-by-step guide on how car subscription works, as well as discuss the advantages and disadvantages of this model compared to car rental or ownership. Whether you're looking for a car for a few months or a year, this guide will help you navigate the car subscription process and determine if it's the right option for you in 2023.

Why should I subscribe to a car? 

While the decision to subscribe to a car will depend on your individual needs and circumstances, there are six main reasons why more and more people are choosing car subscription as an alternative to traditional car ownership methods.

  1. Cost-effectiveness: Car subscriptions can be a more cost-effective option than renting a car, especially if you need a car for an extended period. A car subscription typically includes services such as insurance, maintenance, and roadside assistance, which can help you avoid additional costs.
  2. Convenience: Car subscription services often provide more convenient options than traditional car rentals. For example, some car subscription services offer delivery and pickup, so you don't have to visit a rental car office to pick up or return your car.
  3. Flexibility: Car subscriptions can provide more flexibility than traditional car rentals. With a car subscription, you can often switch between different types of cars depending on your needs, while rental car options can be more limited.
  4. Avoiding the hassle of ownership: Car subscription services take care of many of the responsibilities and hassles associated with car ownership, such as maintenance, insurance, and registration, which can be time-consuming and stressful.
  5. Personalisation: Car subscription services often offer a more personalised experience, allowing you to choose the car that best suits your needs and preferences. Some car subscription services also offer special features, such as adding a roof rack or bike rack to your car.
  6. Trialling an electric vehicle: Electric vehicles can be expensive to purchase outright, but with a car subscription, you can enjoy the benefits of driving an electric vehicle without the high upfront costs. The flexibility of car subscription means that you can also trial an electric vehicle for a dedicated timeframe and decide whether an electric vehicle is suitable for your needs - all without any cancellation fees or balloon payments that would have otherwise been incurred with a car rental program.

How do car subscriptions work?

With a car subscription service, you pay a monthly fee that covers the cost of the car, insurance, and maintenance. The subscription is ongoing, meaning you can pause or end the subscription whenever it best suits you. To get started with a car subscription service, you can simply follow the below steps that are designed to be a convenient and simple process.

1. Research and a choose a car subscription provider

Since car subscription providers differ by location of service, vehicles offered and price ranges; it is important to find a provider that fits your needs and budget. Other factors that should be considered include the minimum terms and vehicle swap policies. Conducting thorough research on the different providers can be done by breaking down the subscription costs and comparing them. It is also worthwhile to read through customer reviews to assess the customer experience across the subscription journey.

2. Select your car

Once you've found a car subscription service that meets your needs, select the car you want to subscribe to. Many car subscription services offer a variety of vehicles to choose from, so take your time to select the one that fits your needs.

3. Choose a subscription plan

Most car subscription services offer multiple subscription plans that vary in duration, mileage allowances and price. Make sure you choose the plan that fits your needs and budget.

4. Sign up with the provider

Most subscription providers will need to approve your subscription booking before finalising it and providing you with your desired vehicle. This approval process will include the company performing a credit check and other background screening such as verifying your identity with your proof of identity documents such as a valid driver's licence.

5. Add any bundle options if needed

Some car subscription providers will offer you bundle options that you can add to your subscription plan for a fee should they fit your needs. These may include:

  • additional driver policies that cover any one else driving your car should they get into an accident
  • mileage booster packs to increase your weekly/monthly allowances
  • liability protection to reduce your claim in the event of an incident

6. Review and sign the subscription agreement

Before you can start driving the car, you'll need to review and sign a subscription agreement. Make sure you understand the terms and conditions of the agreement, including any fees or restrictions.

7. Confirm vehicle pickup/delivery

Depending on the car subscription service, you may be required to make a down payment or pay the first month's subscription fee upfront before you can confirm the collection of your vehicle. Most providers offer vehicle delivery for a fee, however you can choose a time and location that best suits you.

8. Managing ongoing subscription

During the course of your subscription, you will need to manage your plan - including:

Making regular payments

When you subscribe to a car, you'll typically need to make regular payments to keep the subscription active. These payments may be made weekly, monthly, or in some other interval specified by the car subscription service. You'll need to keep up with these payments to avoid any penalties or having your subscription cancelled.

Most car subscription services will allow you to set up automatic payments using a credit card, debit card, or bank account. This can be a convenient way to ensure that your payments are always made on time. You can also make manual payments using the car subscription service's website or app, or by contacting their customer service team.

Updating any relevant details

As you manage your car subscription, you may need to update your personal or payment details. This could include changing your name, address, phone number, or payment information. Depending on the car subscription service, you may be able to update these details yourself through their website or app, or you may need to contact their customer service team for assistance.

When updating payment information, be sure to verify that the new payment method is valid and that you have enough funds to cover your upcoming payments. Failure to do so could result in a missed payment and possible cancellation of your subscription.

Other things to manage can involve keeping up with any required maintenance and reporting any issues to the customer service team, as well as making sure you're not exceeding any mileage limits. You can also request to swap your vehicle by contacting the company you are subscribing with.

9. Return your vehicle

If you decide to pause or cancel your subscription, you will need to return the car. In order to do this, you'll need to schedule a time to drop it off and ensure it's in good condition according to the subscription agreement.

Is car subscription cheaper than car rental? 

Subscribing to a car can be cheaper than renting a car in certain situations such as the following: 

  1. Long-term use: If you need a car for an extended period, such as several months or more, a car subscription can be a cost-effective option compared to renting a car for the same duration.
  2. Multiple rentals: If you need to rent a car multiple times throughout the year, a car subscription can be more cost-effective than renting a car each time. With a car subscription, you pay a monthly fee for access to a car, which can be cheaper than paying for multiple car rentals.
  3. Avoiding additional fees: Car rental companies often charge additional fees for services such as insurance, maintenance, and roadside assistance. With a car subscription, these services are often included in the monthly fee, which can help you avoid additional expenses.
  4. Flexibility: Car subscription services can provide more flexibility than traditional car rentals. With a car subscription, you can often switch between different types of cars depending on your needs, while rental car options can be more limited. This can help you save money by only paying for the car that you need at a particular time.
About the author
George is the Head of Marketing and Customer Experience at Loopit. Having originally started his career as a motoring journalist and founding team member for one of Australia's top automotive startups, George has a strong passion for automotive, business and growth marketing.
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