Difference 1: the runtime
Leasing contracts for cars usually run much longer than for subscriptions. 48 or even 60 months are usual. However, subscriptions are usually concluded for 12 to 24 months. There are also offers for half a year or even shorter. This makes subscriptions much more flexible than leasing. Anyone who likes to change cars often, is curious about new technology such as electric cars, or is professionally dependent on a high degree of mobility has advantages with a subscription. Cars bought or financed in cash, on the other hand, only make sense if they are kept for a very long time, as the owner bears the full residual value risk. More on that below.
Difference 2: the deposit
Although there are also leasing offers without an initial investment, a set-up fee or down payment is often required. This does not exist in this form with the subscription. Some providers require an entry fee, which is often not charged and is marked as a promotion. It is quite possible that it will become due in the future if demand for subscriptions continues to grow.
Difference 3: the fixed costs
Difference 4: the residual value risk
For example, used diesel models have been under much more price pressure in the recent past than economical petrol engines due to the fuel price explosion, exhaust gas scandal and driving ban zones; their depreciation increases even more. On the other hand, those who subscribe to a diesel instead of buying it are independent of these mechanisms and whims on the market because they don’t have to deal with the residual value problem.
Difference 5: the customization
Difference 6: the convenience
So the bottom line is that there is a lot to be said for the new form of car ownership in a direct comparison. Especially with a detailed cost analysis. Studies show that many car owners are completely unaware of the financial resources their vehicle actually consumes. Scientists at the Leibnitz Institute for Economic Research in Essen have come to the conclusion that German car owners systematically underestimate the total costs of their own car by up to 50 percent. “In addition to the loss of value, fixed costs such as taxes and insurance as well as repairs are undervalued,” says the analysis of the scientists.