Car subscription has become a popular alternative for those who want predictability and less bureaucracy. But the monthly amount highlighted in the ad is rarely the real cost.
To decide with your wallet, it’s worth looking at the TCO (total cost of ownership) and understanding what is — and what isn’t — included. Below are straightforward answers to the most common questions from those just getting started.
What goes into the total cost (TCO) of a car subscription?
TCO goes beyond the monthly fee. In general, the package covers a good part of fixed costs, but not all variable ones.
Usually included: - Use of the vehicle for the contracted period - Vehicle tax (IPVA), registration, and mandatory fees - Basic insurance - Preventive maintenance
Usually not included: - Fuel - Tolls and parking - Fines - Insurance deductible in case of a claim - Charges for usage above the contracted limit
When does a car subscription usually pay off financially?
It tends to make more sense when: - Monthly use is predictable and within the contracted mileage - The person wants to avoid large and irregular expenses (vehicle tax, insurance, maintenance) - The car would be replaced in a short time, increasing the weight of depreciation in the traditional model - The budget calls for stability, even if paying a bit more in the long run
For those who drive little, change cars frequently, or value predictability, the TCO can be competitive.
In which situations does the total cost tend to be higher?
The model loses attractiveness when: - Mileage limits are exceeded frequently - The contract is long and usage is intense - There are many claims requiring deductible payments - The driver would already have cheap insurance and controlled maintenance on an owned car
In these cases, the monthly fee is just the beginning of the bill.
Mileage: why does it change everything in the TCO?
The mileage allowance is one of the biggest sources of surprise.
- Plans with low mileage have lower monthly fees, but overages are usually expensive - Driving more than expected month after month quickly inflates the total cost - Adjusting the plan mid-contract is not always simple or cheap
Before signing, it’s worth looking at the real usage history, not an optimistic estimate.
Is included insurance always an advantage?
It depends on the profile.
Subscription insurance usually: - Has a deductible defined by the contract - Does not allow customization of coverage - Costs less than an individual policy for higher-risk profiles
For those who would already have cheap, tailored insurance, the benefit shrinks. For profiles that are expensive in traditional insurance, it can ease the TCO.
Does maintenance really disappear from the budget?
It becomes less unpredictable, but it doesn’t disappear entirely.
- Preventive maintenance is usually included - Misuse can generate extra charges - Cosmetic damage outside the return standard is added to the final bill
In other words: the expense doesn’t show up every month, but it can appear at contract termination.
What are the most common traps for beginners?
Some points deserve special attention: - Administrative fines on top of the violation amount - Fees for early return - Strict criteria for vehicle inspection at handover - Price increases in automatic renewals
None of this is usually hidden, but it doesn’t always get highlighted in the offer.
How to compare a car subscription with owning a car using TCO?
A practical path: - Add up all owned-car costs over 12 months (estimated depreciation, vehicle tax, insurance, maintenance, interest) - Compare with 12 subscription payments + variable expenses - Consider risk: with ownership, costs can vary; with a subscription, they’re more predictable
The final decision is rarely just math. But without this calculation, your wallet usually pays the difference later.
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