WHAT IS CAR SUBSCRIPTION?
Car subscription is a service that provides you with the right to use a vehicle for a set monthly fee. Good car subscription services will offer additional extras alongside the use of the vehicle, such as insurance, maintenance, roadside cover and more.
Car subscription providers may include minimum subscription sign up periods, or alternatively allow you to subscribe to vehicles for shorter terms such as weekly or monthly.
Nearly all car subscription providers offer "plans" with their car subscription service, which usually represent a weekly/monthly/yearly kilometer allowance which is measured by a GPS tracking device on the vehicle.
It's important to note that car subscription does not include any vehicle ownership component - i.e. you do not own your subscription vehicle, nor does paying for your subscription for any period of time bring you closer to owning the vehicle.
HOW DOES CAR SUBSCRIPTION WORK?
The easiest way to understand how car subscription works is to think of it like getting a mobile phone with a plan.
With your mobile phone plan, you will receive a mobile phone + a set allocation of calls, texts and data for a set monthly payment amount.
With car subscription, you will receive a vehicle + a set allocation of kilometers (and sometimes vehicle swaps) for a set monthly payment amount.
Typically your subscription will include on road costs, servicing and maintenance and more as part of your monthly subscription - you will communicate with your car subscription provider to organise where to take the vehicle for servicing or any repair work provided.
IS CAR SUBSCRIPTION WORTH IT?
Car subscription, while relatively new to New Zealand, has been around since 2010. Invented in Hawaii, car subscription services are now becoming more and more popular across the globe. This longevity and popularity of car subscription suggests that it is definitely worthwhile and here to stay.
Compared with car ownership, car subscription offers significantly less stress, as if your vehicle breaks down you don't need to foot the bill at the mechanic. Mechanical work is growing increasingly expensive as the systems that drive vehicles are more and more complicated - this means that from a purely financial standpoint, car subscription could be better option than car ownership.
On top of breakdowns, car subscription services also come inclusive of general wear and tear and servicing as well as WOF & Registration. Getting your WOF and service can get very, very expensive very quickly if your tyres, break pads etc are worn - this is no longer something you need to worry about with car subscription.
For the above reasons, car subscription certainly is worth the monthly payment amount!
60/64 The Strand
9 Manu Tapu Drive
170 Orchard Road
Unit 9 - 222 Glenda Drive
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