Car Subscription is a newer concept to the Australian market and one that many consumers are now considering as a viable way to access their next car. Being referred to commonly as like “Netflix for Cars” Car Subscription gives customers more flexibility than traditional ownership models. You may still be asking yourself however isn’t this just like Rental or Leasing? Well there a few key differences between them.​​

How a car subscription works

Car subscriptions work similar to most other subscriptions out there on the market such as Netflix or Spotify. Quite simply you pay a weekly fee which gives you access to the service. The service in this case just happens to be a full maintained car that you treat like your own.

Your subscription includes everything to do with the vehicle and all of the traditional running costs of a car. That is registration and stamp duty, servicing, tyres and maintenance, roadside assistance as well as fully comprehensive car insurance for your peace of mind. The only costs you are up for outside of this is the fuel and tolls if you choose to use them.

Car Subscription is a flexible alternative to car ownership with one of the biggest draw cards being that the minimum terms start at just 2 months giving you the ultimate flexibility. 

How a car subscription is different to rental

Two of the key differences between rental and Car Subscription come down to the term and also the price. When you think rental you typically think daily or weekly as most people are renting a car for a short period of time. A Car Subscription will typically be a longer term solution for someone who does need a car as part of their normal life.

When it comes to cost as well this is reflected. Car Subscription is an economical alternative to car ownership, and once you consider the all-inclusive nature of the payment is right in the mix compared to owning a car.

Car rental pricing on the other hand is reflective of the short term nature of the hire, and as such typically will be more expensive. In fact you may in some instances see a daily rental rate that is similar to a weekly car subscription rate. Of course there are sometimes longer term deals that you can get when you hire for a longer period, it is usually not as competitive as Car Subscription.

Outside of the costs and the terms – it comes down to the experience. Anyone who has rented a car recently would attest to the experience leaving a lot to be desired. Long waits in line to pick up the car coupled with not knowing what car you will get don’t exactly make you feel special.

What about leasing?

Similar to both Car Subscription and rental, leasing provides an all costs included style of solution for your motor vehicle. That is much like rental and Car Subscription, the pricing includes everything to do with the vehicle from a servicing and maintenance point of view, roadside assistance, registration and insurance.

In fact unlike renting or subscribing, leasing often also includes the likes of fuel via a fuel card provided to you with a set limit for KM’s to be travelled making one less thing you have to worry about. Keep in mind you are still paying for this it is just bundled up into the overall price.

The thing that sets leasing apart from Subscription or rental comes down the term and flexibility. While rental would be considered typically as fairly short term, Car Subscription sits in the medium to longer term, while leasing is a long term solution for a car. Meaning if you sign on to lease a car than while you don’t own the car, you are committing yourself to typically a minimum 3 – 5 year term meaning you are locked in. The price is reflective of this as well and leasing can be quite economical but you want to be sure your happy with that car for the next 3-5 years as break costs can be significant.

Car Subscription on the other hand is also a viable option for a longer term solution for your car. With the Motopool customer rewards program reducing the amount you pay the longer you subscribe not only do you get rewarded for subscribing to a car for a longer period, importantly you don’t get penalized if your needs do change and you decide you no longer require a car or you simply want to change to a newer/different model.

A Car Subscription is all about the flexibility.

Want more information?

If you want to learn more about car services and how it could help your business, contact MT Corporate Advisory. Our team are experts in growth planning, and are always happy to offer a hand with a business strategy that will work for you. We can work with you to develop a tailored plan to optimise your operations, and boost your profitability.