Car subscription has gained traction by promising predictability: a fixed monthly fee that includes several costs. For those just getting started, this sounds like a synonym for savings.
In practice, the decision depends on the total cost of ownership (TCO). Understanding what is — and what is not — included in the bill is essential to compare with buying, financing, or traditional rental.
Myth: the monthly fee is the car’s final cost
The monthly fee bundles important items, but it does not conclude the TCO. In general, daily-use expenses are not included.
- Fuel - Tolls and parking - Fines and any administrative fees
When comparing, add these amounts per month to get a more realistic number.
Truth: insurance and maintenance reduce unpredictability
One of the main attractions is predictability. Insurance, preventive maintenance, and documentation are usually included.
This reduces spending spikes throughout the year and makes monthly budget planning easier, especially for those who don’t want to deal with unexpected variations.
Myth: it’s always cheaper than buying a car
Subscription is not automatically cheaper. Over long terms, buying can better spread the monthly cost, despite the down payment, depreciation, and resale.
In the TCO, compare:
- Subscription monthly fee - Installment + insurance + maintenance + taxes for purchase - Usage horizon (12, 24, 36 months or more)
Truth: contracted mileage weighs on the wallet
Plans have usage limits. Exceeding the allowance results in charges per excess kilometer.
For those who drive a lot, this item can flip the math and make the subscription less advantageous than it seems at first.
Myth: switching cars always comes at no extra cost
Flexibility exists, but it usually comes with rules. Ending early or changing plans can generate fees.
Read carefully:
- Early termination penalty - Conditions for upgrade or downgrade - Minimum commitment periods
Truth: depreciation stops being a concern
With a subscription, the risk of depreciation stays with the company. This simplifies the TCO for those who don’t want to deal with resale or used-car price drops.
For profiles that change cars frequently, this factor can weigh positively in the comparison.
How to compare subscription and other options using TCO
For beginners, the clearest path is to standardize the analysis in monthly values.
- List all included and excluded costs - Estimate real usage (mileage and routine) - Compare with cash purchase, financing, and daily rental
A subscription makes sense when predictability and convenience justify the difference in total cost — and loses its appeal when heavy use or a long term make the bill more expensive.
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