Car subscriptions have gained ground because they promise predictability: a monthly fee and almost everything taken care of. For beginners, it sounds like an antidote to vehicle tax, unexpected maintenance, and headaches.
The problem is that predictability is not synonymous with lower cost. The decision only becomes clear when total cost of ownership (TCO) enters the equation — and when contract rules are read with a magnifying glass.
Step 1: understand what the monthly fee really covers
Before comparing prices, you need to know what’s inside the package. In general, the monthly fee includes:
- Use of the car for a fixed term (12, 24, or 36 months) - Insurance - Preventive maintenance - Vehicle tax and registration
But some items are usually excluded or have clear limits:
- Fuel - Car washes - Fines - Insurance deductible in case of a claim
In the TCO, what matters is not only what’s included, but what you’ll keep paying out of pocket month after month.
Step 2: put mileage at the center of the calculation
The mileage allowance is the heart of a car subscription. Exceeding this limit completely changes the total cost.
Common example: a 1,000 km/month plan. It seems sufficient, until you add up:
- Daily commute to work - Short weekend trips - Commitments outside the routine
Excess mileage is usually charged per kilometer driven, and the price is not symbolic. In the TCO, it’s worth calculating three scenarios:
- Ideal use (within the limit) - Realistic use (slight overage) - Heavy use (well above the plan)
If costs explode in the last two, the plan may not fit your profile.
Step 3: compare with owning a car using the same time horizon
A common mistake is comparing the monthly fee with a loan installment. The correct approach is to align the period.
If the subscription is for 24 months, the owned car should be analyzed over the same 24 months, adding:
- Down payment (spread over the period) - Installments or opportunity cost of the money - Proportional vehicle tax - Insurance - Maintenance and services - Estimated depreciation
Only then does the TCO of both options become comparable. Over short terms, subscriptions tend to look more competitive; over the long term, the game can change.
Step 4: pay attention to return rules
Returns are where many pitfalls appear. Contracts usually provide charges for:
- Scratches and dents outside “normal wear” - Tires below the expected standard - Missing accessories
In the TCO, this comes in as risk. Those who use the car intensively or park on the street frequently need to consider a buffer for this potential cost.
Normal wear is not an elastic concept
What the company considers acceptable may be stricter than common sense. Small details, added up, become a meaningful charge.
Step 5: assess flexibility as economic value
A car subscription is not just about direct cost. It buys flexibility:
- Changing models at the end of the contract - Planned exit without worrying about resale - More stable monthly budgeting
This has economic value, especially for those who:
- Don’t want to tie up capital - May change cities or routines - Prefer to avoid resale risk
In an expanded TCO, this predictability weighs in — even if the monthly fee is higher.
Step 6: identify when the numbers stop adding up
Some profiles rarely benefit from subscriptions:
- Those who drive far above average - Those who keep the same car for many years - Those willing to manage maintenance to reduce costs
In these cases, the monthly fee becomes a high premium for convenience, and the TCO tends to exceed that of owning a car.
Step 7: a final decision without illusions
A car subscription is worth it when total cost is predictable, usage fits within the contracted mileage, and flexibility has real value in your budget.
It’s not worth it when the monthly fee hides frequent overages, return risks, and a cumulative cost higher than well-known alternatives. The key is simple: less emotion, more math done down to the last kilometer.
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