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How to Choose a Car Rental Subscription: Benefits & Why To Consider It

1) What is a “car-subscription”?

This millennium has seen the automobile industry witness significant and rapid changes in consumer behavior, new technology, operating costs, and infrastructure requirements. This has compelled the automobile industry to experiment with new models, including the “subscription model.”

Early results have shown that this model has been successful in attracting new-age buyers and generating recurring revenue for auto manufacturers and dealers. 

A car subscription is usually an all-inclusive deal that provides access to a car of your choice.  The subscription typically includes insurance, maintenance, taxes, etc. Based on your plan, it could even include fuel, mileage (etc.)

Gen-Z’s New Fashion Statement: Car Subscriptions  ~

Gen Z’s pursuit of thrills and “instant gratification” is fueling the development of the car subscription model. Thus, the automobile industry is experimenting with it since it creates a new revenue line item and the opportunity for consistent, recurring revenue. ~

2) How is a car subscription different from car leasing?

Long before the advent of today’s car subscription model, the automotive industry was using other models to provide a recurring, rental, or “non-ownership revenue model,” including leasing or even the age-old, shorter-term model of car rentals.

With a car subscription service, the customer gets access to a car on a recurring basis. However, unlike a “car lease,” all insurance, servicing, maintenance, taxes, (etc.) are the responsibility of the automobile company (or the service provider). 

3) How does a car subscription work?

It works just like all your other subscriptions—Netflix, Amazon, Whole Foods, gyms, and online courses—do. The “subscription” makes it simpler, easier, and more accessible for all concerned. 

The signup process is a simple one, done via the company’s app or website. After the selection, formalities, and payment are complete, the customer could pick up the car from the company showroom or have it delivered (all this is a matter of choice based on the subscription plan that you choose). 

Subscriptions typically include a one-time joining fee and an all-inclusive fee for usage, taxes, insurance, maintenance, duties, etc. Such car subscriptions don’t ask for long-term commitments or contracts.

A car subscription also gives the customer the opportunity to own more than one vehicle during a period, or switch between vehicles based on requirements (e.g. a new model that you want to drive instead of your old one) 


Why Are Automakers Offering Car Subscriptions?  ~

The convenience offered by car subscriptions are unmatched. Also, the rapid growth of today’s “subscription economy” has driven automakers to test the waters. 

Evolving consumer interest, market feasibility, and revenue potential are just some markers that Automakers are studying, while offering a thoughtfully curated selection of fleet-models, often only in limited markets.

Variety is key, and the pins of success are still developing. Therefore, some companies offer the flexibility to switch between models, while others pamper consumers with car drop-off/pick-up or regular maintenance. ~


4) 8 top benefits of car-subscription


i) Cost-effective: Well, we all have bills to pay and expenses to manage, don’t we? And a cost-effective option is always a welcome deal! 


Buying a car is hardly cheap – there’s the down-payment, insurance, registration, monthly EMIS…it’s a pretty long list! And, all this is applicable even if you don’t drive your car regularly.

A leading benefit of a self-drive car subscription is that you can bypass such hefty upfront charges. All you need to pay is a nominal deposit, which is refundable when your subscription tenure ends. Even when you work out the complete financials, chances are you will realize that a car subscription is more favorable than buying one.


ii) Convenient digital assistance: Car subscriptions are easily researched and done via the modern App. All the cumbersome procedures of paperwork, signatures, verifications, and the time and effort spent, are circumvented. 


Now, easily access various plans and pricing options via the mobile app and close your subscription digitally. Car subscription platforms have prompt and helpful customer service teams that help you with any questions or clarifications. 


iii) Enjoy greater flexibility through subscription: For folks with a mobile lifestyle (e.g. moving between jobs, cities, contract-based gigs that require frequent relocation), a car subscription would be most suitable. 


Depending on your needs, you could choose a monthly or quarterly car subscription and change it as your schedules or requirements change. Clearly, this wouldn’t have been possible if you had bought your own car at one location.

A car subscription not only enables you to switch between cars as your requirements change but also to adjust your terms and conditions accordingly (e.g., while moving cities). 


iv) Avoid hassles of maintenance and aging vehicles: In a car subscription, you can avoid all hassles of maintenance, repair, insurance (etc.). All you do is pay the subscription fee for the duration that you drive it. 


v) Subscription plans provide one, all-included price: We are all aware of the “running costs” of a car – right from daily maintenance, taxes, pollution certificates, servicing, insurance (etc.). Often, it affects your monthly-cash flow especially if it comes up suddenly. Avoid such hassles via a car subscription service since you only pay the rent for the duration of your subscription. 


vi) Use the newest car models: Well, we all love a cool, snazzy drive don’t we! And, with a car subscription, you could change your vehicle as often as you deemed fit and change/upgrade to newer models of your choice as soon as they hit the market! Apart from being the latest model the new(er) cars will always have the best performance (mileage, suspension, pickup)

To change, all you need to do is log on to the portal and select your next one…


vii) “Live a little” – with an expensive car: As an extension of the point above, not all of us can afford to buy expensive cars – however, with numerous easy car-subscription plans, you could always get yourself a good deal and drive a high-end model one for a length of time! 

viii) No worries about selling your old car: We’ve all had to go through this. The stress and effort associated with “getting a good price” for the old car or “getting a good buyer at the right time”.


With a car subscription, all you do is return it (and, get your next one as desired). 

Conclusion: As is evident, the benefits of a car rental subscription are many. Therefore, if you are in a position to offer one, you should assess the business opportunity. Also, be sure to deploy all the modern tech tools like a well-designed App, modern car rental software, and numerous payment options so that you can offer your potential customers a solid value proposition.

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