Discussing the benefits and limitations of car subscription services.
Just as Uber has become a staple in most cities across North America, another car-sharing model is rising to popularity. Car subscriptions are exactly what it sounds like: an opportunity to use a car without the commitment of a lease, financing, or buying. Some big names in auto are investing heavy in this area and providing direct access to new cars off their lot. Other platforms offer a broader selection of vehicles not tied specifically to any single auto-maker.
The Good and Not So Good of Car Subscription Services
The biggest benefit of car subscription models is flexibility. If your car use fluctuates month-to-month, then having the flexibility to use a car as needed is a bonus. Flexibility also shows itself in the variety of cars. While not all car subscription services let you switch out a car on a monthly basis, most offer the opportunity to change the vehicle regularly.
On the not so good side, car subscription services aren’t cheap. Not compared to what you would pay if leasing a vehicle. In the lean research we conducted, the least expensive car subscription services start at around $400/month, which may or may not include a combination of insurance, maintenance, and roadside assistance. The most expensive gets into the thousands, but those services are typically aimed at high net worth car lovers and not regular citizens simply looking to get from point A to point B. So it’s very possible you may be paying $400/month without insurance to operate a vehicle through one of these car sharing services.
Active Car Subscription Services
Here’s a list of active car subscription services. You’ll notice not many are yet active in Canada, but that list is set to grow as the year continues.
Direct from Auto Makers
Care by Volvo (Canada)