What Is a Car Subscription? Everything You Need to Know About Subscribing to a Car

A car subscription is another option that has recently hit the radars of US drivers. Subscribing may suit you better than traditional buying or leasing as it’s a flexible and convenient way to drive a car you actually want to drive rather than simply one you can afford.

Another great beauty of car subscription services is that if your car preference changes, so too can the car you get to drive.

You can drive a different car after 6-12 months rather than having to wait years. With a subscription, you simply pay affordable monthly fees as you go without worrying about depreciation, maintenance or high interest rates. 

That’s partly why the global car subscription market is predicted to grow at a compound annual growth rate (CAGR) of 35 percent between 2023 and 2032.

Subscribing may be an attractive option for you. Let’s look at what car subscription services are, how they work, who’s best suited to subscribing, and what the main pros and cons are.

With a car subscription service, you never own the car (the same as leasing) but you can drive it for as long as you like by paying a pre-agreed all-inclusive monthly fee. 

Think of it as somewhere between renting and leasing cars. Car subscription services are generally provided by:

• Some of the major car manufacturers

• Dealership groups 

• Car rental companies

• Leasing companies 

• Dedicated third-party car subscription companies (like FINN)

How does it work?

Most people start by shopping around for the car they want, researching makes and models as they might do for a lease or if buying a car. 

With the subscription option, you would then contact a trusted subscription service provider to discuss options and terms. A quote will outline any one-off charges and the proposed monthly fees based on a certain mileage. 

Once you pass the credit checks, all that’s left is to sign up and schedule a convenient time for the delivery of your car. 

The subscription model is simple and hassle-free. The car you select is delivered to your door and the competitive monthly fee you pay covers not only the depreciation of the car but registration, insurance, roadside assistance and maintenance. 

If you get bored with the car you’re driving, fancy an upgrade or simply decide that better options are available, you can subscribe to a different car after an initial contract period of six to 12 months.

Let’s start with the elephant in the room: the costs.

These vary with providers and models but the bottom line is that most drivers can expect to source a deal that works out cost-effectively. 

Is it cheaper than leasing or buying a car? Well, there are many hidden costs of buying a car in the U.S. and lease deals don’t usually include insurance.

So, make sure you compare apples to  apples. With car subscriptions, your monthly fee includes the cost registration, insurance, roadside assistance, and maintenance. There are also no down payments or financing charges to pay.

You won’t own the car at the end of the contract, as with a car lease but, unlike a lease, you don’t have to commit to driving the same car for several years.

Even with the many other benefits, a car subscription service usually compares very favorably with leasing from a cost perspective because you don’t have the monthly “extras” like insurance to pay. You may pay a small premium for the extra flexibility (you can essentially flip a car and move on to the next one) but subscriptions operate in the same budgetary ballpark as leases.

You can read more about the total cost of a car subscription in our dedicated post on the subject. Beyond costs, there are other pros and cons to consider with car subscription services.

Let’s take a look at the main benefits and drawbacks of subscribing:

Check out our post on Leasing vs Buying vs Subscribing for more info on this.

You’ll likely consider a car subscription if you are:

• Looking for ultimate flexibility with the car you drive, without the hassle of constantly renting.

• Unable to meet the down payment required to finance a purchase or are concerned about passing the credit checks.

• Not keen on committing to a three- or five-year lease deal.

• Keen to avoid the hassles of registration, maintenance, roadside assistance, etc.

• Keen to know exactly how much your car’s going to cost each month.

• Pretty sure you can stick within mileage limits (with FINN, you can choose how many miles to include per month and additional miles will be settled after you return your car) 

• Looking for a quick and easy way to drive the car you want.