As COE and inflation hits an all time high, car ownership has become more expensive. Now is a good time to ask yourself if you really need to own a private vehicle. Sure, you need the convenience but owning a car is simply a drain on your finances.
Currently, there are multiple options that drivers can consider to reduce their expenditure and drive a car at the same time.
Car sharing and now car subscription are now the better alternatives. So what are the differences between owning a car or using alternatives, and which option should you choose?
As we attempt to compare owning a car, car sharing and car subscriptions, we need to know that there are differences with each of the options.
Car sharing is mostly catered to drivers who need a car for a few hours or have several trips to make. These services charge per-hour rental fees or mileage-based fees. It might seem like the cost of a trip is cheaper but most of the services requires you to return the car to where you picked it up from, meaning that if you actually rented a car in the morning to drive to work, you will have to also pay for the rental duration from when you first clock in to when you clock out. Stickers or liveries on these cars may make the cars look like moving advertisements rather than a private car usage. These cars are also shared with multiple users daily and cleanliness or hygiene may be a concern for some.
Additionally, car sharing may also require you to pay registration or subscription fees, as well as security deposits, depending on the platform you choose. This would mean having to deal with a higher cost of entry.
What If You Need A Car On A Longer Basis Or If You Dislike The Hassle Of Car Sharing?
If you are in need of a car for longer than a day for frequent travels, you can still try your luck at any of the several car rental platforms. You should expect that there are times that you will be unable to book a car sharing ride on a consistent basis or at the time when you need it the most.
You might have to travel some distance from your starting point to secure a vehicle and you might not be able to have the same vehicle or model throughout the rental period.
There’s another alternative you can try: car Subscription. Car subscription is a new way to get your hands on the latest vehicles on the market for your private use for a longer period of time compared to Car Sharing. It allows you to skip all the cost and potential hassle of buying a car or sharing a car.
Subscription services work on a rolling contract, with the option to cancel or change your vehicle at the end of your contract. That’s handy if your circumstances are likely to change – for instance if you’re thinking of starting a family or working abroad for a while.
With a car subscription you technically “Own” a car for the period of your subscription which you can drive your car whenever you need. Furthermore, you are able to choose the best or latest car model of your liking.
The best part about Car subscription is that it includes insurance, maintenance, roadside assistance during car breakdown and driver customer support which you can rely on. All included in one monthly fixed subscription fee.
Most car subscriptions tend to be 6-24 month contracts for the flexibility and attractive prices when compared to leasing or long term rentals.
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With the latest COE going through the roof, it may not make sense to purchase today as resale will be a concern when you want to switch out to a newer model or another brand.
With high COE, the depreciation of the cars are also at its peak and it would make sense to wait for the COE cycle to swing downwards before considering the next purchase.
In the meantime, car subscription is an alternative to tide through with choices from 6 months to 24 months at great pricing while you can put the intended downpayment of the deposit for the new car in fixed deposits or investments to generate more cash flow for your future car purchase.
A table comparison between Cars Subscriptions vs Car Sharing vs Car Ownership: