Do you want a car without the contracts and regular maintenance? If you do, car subscriptions might be your best option.
Car subscription services allow customers to use a car without the obligations of everyday maintenance and the long-term commitment to contracts that come with buying a car. Subscription providers take care of the maintenance and insurance, so you can focus on driving.
These services operate on a monthly subscription basis, allowing customers to switch vehicles anytime. This is ideal for people who want to prioritize excitement, convenience, and, most importantly, versatility.
If interested, consider exploring Drive Fuze or other local car subscription providers and test-drive a car. But before you do, explore and debunk some myths associated with these services, so you can decide whether to apply for one.
Here are the most common myths you must stop believing:
1. Car Subscription And Car Leasing Are The Same
When you apply for a car subscription, you won’t become the owner of that particular vehicle, just like when you lease a car. Both options grant customers access to vehicles without long-term commitments. However, they’re not the same.
Car subscription services are relatively new compared to car leases, but that doesn’t make them inferior to others. In fact, they provide additional flexibility because customers can make changes to the services they avail of every month through an app.
On the other hand, leasing is a short-term alternative to purchasing a car. Unlike subscriptions, the customers are responsible for expenses like insurance and maintenance. They may also be required to rent the same car for at least two years but may enjoy better value.
2. People Are Not Interested In Innovative Solutions Like Car Subscriptions
Car subscription services could potentially fill the gaps left by car ownership and car leasing, which could establish a new customer base. But the question is: who are these new users, and how significant are they?
Here are some customer profiles who might be interested in car subscription services instead of car leasing or ownership:
- The Streamliner: These people prioritize flexibility and convenience, like most Gen Zs and millennials, and don’t want to address unnecessary, burdensome aspects of owning a car (e.g., visiting a dealership).
- The Family: These families might need a car during the busiest times of the year (e.g., the holidays).
- The Auto Tester: These are people who want to experience driving a new car before buying it. For example, a customer might think of purchasing an electric vehicle but want to give it a try first if it’ll work for them.
- The Traveler: These drivers might hesitate to own or lease a vehicle because they rarely stay in the same place for longer periods. For example, customers might travel to warmer regions during winter and colder locations during summer.
- The Driving Enthusiast: These customers want to purchase a particular car model, but that model isn’t available at the moment. They can subscribe in the meantime while waiting for new stocks to arrive.
Do you see yourself in the customer profiles above? If you do, a car subscription might best suit your short-term or long-term needs.
3. Integrating Digital Solutions Into Existing Dealership Is Complicated
What’s great about digital mobility solutions is their lean and scalable operations. This is made possible by intuitive and all-inclusive software programs.
Advanced software solutions can provide what the dealership requires, such as maintenance management, pricing options, user-facing front end (e.g., payment, car check-ups, and registration), and user engagement.
With the right digital mobility solution, dealerships will be able to deliver subscription services in less than three months. These may include the vehicles, possible price points, part-time resources, and insurance providers. Once done, the software provider will fulfill its role.
Digital mobility solutions allow dealerships to scale their needs and integrate offers in one or multiple locations across different countries and territories.
4. Car Subscriptions Services Already Failed In The Past
Many innovative solutions and services aren’t successful after the initial launch, including car subscription services.
They were first launched somewhere in 2018. But like most startups do, companies have faced some setbacks and challenges.
The first wave of car subscriptions was more expensive than car leasing and purchasing. That’s because they were designed based on the idea that users only accept premium cars and change models often.
However, this notion has been proven false. Feedback showed that many people prefer consistency over constant change, leading to adjustments in the subscription model.
5. There Are Plenty Of Hidden Costs
Car subscription services don’t have any hidden cost, unlike purchasing or leasing a car. You know what you’ll pay for and can create a budget easily. One fixed monthly price covers everything from maintenance to insurance, except fuel, parking, and traffic tickets.
Therefore, you don’t have to worry about hidden or unexpected charges when you subscribe to this service.
6. There Is A Hefty Initial Deposit Or Upfront Payment
When you purchase or lease a car, there’s a hefty initial deposit or an upfront payment to settle before bringing it home. But that’s not the case with car subscription services.
The monthly rates are easy to calculate and manageable. They’re designed in this way to be more affordable than traditional car ownership or leasing options.
The companies often charge an initial flat rate. This covers identity checking, credit checking, car registration, plate number, car preparation, and profile creation. The initial flat rate is a one-time fee and should no longer charge you during your subscription.
7. Car Subscriptions Are More Expensive Than Purchasing Or Leasing A Car
Car subscriptions may seem more expensive than leasing or purchasing a car at first glance, but when you factor in all the associated costs, they can actually be more cost-effective.
They might have higher monthly costs, but only because the fees are all-inclusive. The monthly fee covers basic running expenses, such as tires, maintenance, insurance, and road tax—costs that you’ll have to pay separately when buying a car or leasing one.
Final Words
Car subscription services allow customers to drive a car without committing to contracts and worrying about regular maintenance. On top of that, those who subscribe can change cars and services anytime—flexibility you can’t find when purchasing or leasing a vehicle.
But before you subscribe, understand how the services work. The following myths debunked may serve as a lesson for those who want to know the truth behind this innovative, convenient, and flexible.
