Last Updated on: 21st November 2023, 11:53 pm
Subscription cars, a relatively new way of renting cars, are gaining strength in the market. The data shows that the fleet of car rental companies specializing in subscription car rentals grew by 20.8% between January and October 2022 — according to the latest available data. In January 2022, the volume of leasing by this method amounted to about 91 thousand cars, compared with more than 110 thousand at the end of October 2022. If you went on vacation or for other reasons ended up in the Arab Emirates, then a great opportunity to get new emotions from first-class cars will be to rent a car in Dubai.
How does a subscription car work?
In the subscription car modality, instead of purchasing their own car, a person rents a car for one, two or even three years. As a rule, we rent a car for a short period – for example on a trip. People often hire a car for an hour or day, say, in Dubai, to make awesome pics, try a car of your dream, and be mobile around the city. You can rent g63 Dubai to understand what we mean.
But a monthly or yearly subscription is much more convenient if you need a car for a domestic needs.
In this format, by paying a monthly subscription fee, the customer gets a new way of owning a car without buying it and, therefore, no longer worrying about insurance, maintenance, inspections, taxes and emerging problems. when selling a car.
Differences between a subscription car and a rental car
The main difference is that a subscription car is always a zero-mileage vehicle, and this is one of the main advantages of the modality, since those who choose a subscription car always own a new car.
Another important difference is the term of the contract. While traditional car rentals may be limited to one day, subscription car rental contracts typically range from 12 to 36 months. There are popular models in the modality, as well as luxury cars.
What is included in the price of a subscription car
In addition to the vehicle itself, the amount paid by the client on a monthly basis entitles you to round-the-clock assistance in case the car needs repairs, insurance, registration and taxes. Some companies in Dubai offer even emergency services at home, such as a locksmith, plumber, and electrician, as a benefit.
After all, the only user cost besides the monthly car fee is fuel.
Subscription car: is it worth it?
Financial educator Carol Stange explains that, as a rule, car rental companies charge one-third of the cost of the same car that drove the zero kilometer for their cars per year. “If we compare only the cost of the goods, this bill may be linked to buying or renting a car, if we are talking, for example, about a three—year lease agreement,” he says.
However, since the costs are not limited to the value of the asset, renting a car by subscription means that the user does not have to pay taxes as well as maintenance and insurance costs. “In addition, someone who rents a car does not need to worry about a possible devaluation at the time of its resale,” notes Stange. “A good guideline in terms of the cost of additional costs when making a decision to buy a car is to take into account that the cost of this product is about one-sixth of its cost per year.”
In her opinion, a subscription car is worth it, mainly for people who travel long distances every day or spend a lot of time in traffic jams in big cities, such as self-employed sellers, sales representatives, and representatives of any other professions that require movement, since such intensive use can lead to premature wear of the car.
If the consumer chooses to rent a car, it is recommended to leave the money that will be spent on buying a car in the account. “We are at a difficult moment for the economy, and the market is worried about future unpredictability,” explains Stange.