How much do car subscriptions actually cost?
How much do car subscriptions actually cost?
Finding out which approach to driving is best can be confusing and a key consideration, of course, is money. In this blog, we’re diving into the true cost of subscriptions and how they compare to traditional purchasing and leasing to help you identify the right solution for you.
Understanding the costs associated with car subscriptions
Car subscription is a relatively new approach to driving that is designed to give the user greater freedom and flexibility than traditional purchasing and leasing. Typically, you pay an all-inclusive monthly fee that covers fully-comprehensive insurance, tax, maintenance, servicing, tyres and breakdown cover, with the option to change your vehicle or cancel your subscription as and when your needs shift.
The great advantage of this approach is that you don’t need to budget additionally for running costs or unexpected charges for repairs and damage.
So what are the costs you can expect to pay for a typical car subscription?
● An all-inclusive monthly paymentthat also covers the running costs we outlined earlier.
● A refundable initial upfront paymentusually equivalent to a month’s subscription fee.
● Delivery, collection and/or admin fees,if these apply.
● Any optional extras such as additional mileage (you’ll get 1,000 miles a month included as standard in our subscriptions), an additional driver or EU insurance coverage.
The cost you pay for your car subscription each month will depend on the make and model you select and any optional extras you’ve signed up for. The only other cost you’ll need to consider is fuel or EV charging.
Another major advantage of car subscriptions over traditional ownership and leasing is that upfront costs are lower. Drive Fuze subscriptions require just one month’s fee upfront as opposed to either the total price of the car (when buying) or the equivalent of six monthly payments or 10% of the vehicle’s value (when leasing).
Breaking down the costs of Drive Fuze’s car subscription service
A Drive Fuze car subscription couldn’t be easier to set up. We’ve talked about it in detail in our post on how car subscriptions work, but to recap, it’s a simple four-step process:
● Choose your car – browse our cars and find the right one for you.
● Customise your subscription – tailor your subscription to your needs (for example, increasing mileage or adding a second driver).
● Paperwork and payment – send us your documents so we can verify your ID and make your initial payment (equivalent to a month’s subscription).
● Delivery – await the speedy delivery of your new wheels on a day of your choice.
It’s worth bearing in mind that although you’ll make an upfront payment of one month’s subscription during the paperwork and payment stage, you’ll get this back when you return the keys at the end of your subscription. You’ll also be able to cancel at any time, so if you find you can no longer afford your monthly payments, we ask for 14-days’ notice at the beginning of the calendar month, and then they’ll stop.
By contrast, with leasing, you won’t get your upfront payment back and you’re tied into a lengthy contract, with monthly payments that continue for between two and four years. When paying upfront to buy a car outright, you’ll only get back the capital you’ve invested once you sell it – and due to depreciation, it’s likely that you’ll get back less than you put in.
Comparing the costs of car subscriptions to other modes of transport
Beyond subscriptions, purchasing and leasing, there are, of course, other ways to get around.
Public transport has long been the most affordable approach to travel. But with tickets on major commuter routes increasingly and often impractical, it’s no longer a reliable solution.
Car rental is another option and we’ve gone into some detail considering its pros and cons here. Long-term car rentals typically start at around £500 a month, and often don’t include fully-comprehensive insurance and other running costs. Car subscriptions, on the other hand, start from as little as £349 per month and include everything except fuel or EV charging.
We’re confident that car subscriptions offer not just incredible freedom and the flexibility to change according to your circumstances, but also cost savings compared to other modes of transport. Most importantly, subscriptions offer value-for-money, easy budgeting and peace of mind.
Frequently asked questions about the costs of car subscriptions
Is a car subscription more expensive than leasing or owning a car?
In a word, no. Upfront costs are lower, and monthly subscription fees often work out as more affordable once the large upfront payments and running costs associated with leasing or buying are factored in.
What additional charges should I expect with a car subscription?
The only charges you should expect to pay in addition to your monthly subscription fee are one month’s payment upfront (which you’ll get back when you return your vehicle) and a delivery or collection charge, if one applies.
How can I keep an eye on my mileage?
The best way to monitor your mileage is simply to reset your odometer on the first of each month so that it counts up the miles you’ve done. With Drive Fuze, your subscription includes 1,000 miles a month as standard.
How can I choose the right subscription plan for me?
Browse our cars to find the vehicle that’s right for you, and then sign up to customise your subscription plan to your specific needs, such as adding additional drivers or extra mileage. If you have any questions, do feel free to give us a call on 0330 118 0947.
So, is a car subscription actually cheaper?
As we’ve seen, car subscriptions simplify costs considerably, with a low (refundable) upfront payment and a single all-inclusive monthly fee that covers all your running costs, including insurance, tax, breakdown cover and maintenance.
When choosing the right approach for you, it’s important to look at all the costs associated with each driving model before making a decision. Compared to the large upfront payments required for leasing or buying, together with unpredictable monthly running costs, a car subscription can offer significantly better value for money and peace of mind than the alternatives.
Interested? If you’re looking for a flexible, cost-effective alternative to traditional car ownership or leasing, find out more about Drive Fuze subscriptions.