Car subscription and long-term rental: What are the differences?
This is how long-term rental works
What is a car subscription?
Rent and subscription: these are the similarities
– Full cost control (taxes, insurance and maintenance as well as other additional costs are included in the monthly rate)
– As a rule, subscription and long-term rental cars are new cars with good equipment
– Very high flexibility due to short contract terms
– Cross-manufacturer and cross-model range of vehicles
– Depreciation doesn’t matter
– Free mileage flat rate sometimes low
– Ideal for testing different technologies over shorter periods of time, such as hybrid or electric cars.
Would you prefer a subscription or long-term rental?
The basic rule is: For shorter terms, only the long-term rental car comes into question or is the better choice. Use periods of one to three years are more in favor of the car subscription. Example: If you don’t have a car and are professionally transferred to another location for several weeks for a project, you should consider a long-term rental car. The providers here come almost exclusively from the classic car rental sector such as Sixt, Avis, Herz or Europcar. The Avis website, for example, lists a Polo class car as a long-term rental car for €529.
Subscriptions, on the other hand, were made socially acceptable in Germany primarily by start-up companies such as Like2Drive, ViveLeCar and Finn. With fresh entrepreneurial enthusiasm, well-programmed websites and a fully digitized ordering process, they have now established a sales channel for cars that is constantly growing. The term car subscription has almost become a buzz word. Comparisons are often made with streaming services such as Netflix, where you can subscribe to unlimited films at a flat rate. That looks sexy and, so the makers hope, will be transferred to the staid car industry with its traditional sales via car dealerships.
But that doesn’t have to be a bad thing. The bottom line is that a rented or subscribed car is a better choice than a purchased car because it is cheaper. Regardless of whether the new name is a rental car or a subscription car.