Car ownership is changing, and car subscription services are becoming an increasingly popular alternative. Instead of buying or leasing, drivers can subscribe to a car for a monthly fee that often includes insurance, maintenance, and roadside assistance. But is this model actually worth it? Let’s break it down.
1. What Are Car Subscription Services?
A car subscription is a flexible alternative to owning or leasing a vehicle. Instead of committing to a multi-year loan or lease, you pay a monthly fee to use a car, often with the ability to swap vehicles or cancel after a short period. Some well-known services include Care by Volvo, Onto (for Electric Vehicles), and Pivotal by Jaguar Land Rover.
What’s Included?
- Insurance
- Road tax
- Servicing & maintenance
- Roadside assistance
- The option to switch cars (depending on the provider)
2. How Much Do Car Subscriptions Cost?
Pricing varies depending on the provider, car model, and contract length.
- Economy models (e.g. small hatchbacks) – from £400 per month
- Mid-range SUVs & saloons – £600-£1,000 per month
- Luxury & performance cars – £1,500+ per month
Tip: Some services require a sign-up fee, while others include a refundable deposit.
3. Pros of Car Subscription Services
Flexibility – No long-term commitment; cancel or switch cars easily.
All-inclusive pricing – No unexpected repair or insurance costs.
No depreciation worries – You don’t have to worry about the car losing value over time.
Perfect for short-term needs – Great if you only need a car for a few months.
4. Cons of Car Subscription Services
Expensive for long-term use – Monthly fees can be higher than leasing or financing a car.
Limited car choices – You may not always get the exact model you want.
Mileage restrictions – Most services limit the number of miles you can drive per month.
No ownership benefits – Unlike financing, you don’t build any equity in the vehicle.
5. Who Should Consider a Car Subscription?
A car subscription might be worth it if you:
✔️ Need a car for a short period (e.g. work contract, travel, or trying out an EV)
✔️ Want an all-inclusive package without surprise costs
✔️ Prefer flexibility over long-term ownership
However, if you drive frequently, want to build ownership value, or need the most cost-effective option, leasing or buying might be the better choice.
Final Thoughts
Car subscriptions offer convenience and flexibility, but they come at a higher cost. If you value hassle-free driving with no long-term commitment, they could be worth considering. However, for long-term affordability, leasing or financing may be the better route.
Pro Tip: Want to track your car expenses effortlessly? Join Karr today & stay on top of your driving costs!
