Car leasing VS Renting Vs subscribing: which option suits you the best?

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In today‘s fast-paced life everyone wants to have things that are hustle-free. Hence, there has been a change in people’s mindset in their car-buying decisions. So, if you are the one who wants to drive a car on your own but does not want to buy a car as it’s a big responsibility then many auto companies and aggregators have a wide variety of options to fulfill your dream of driving a car.

Car leasing, car subscription, and car renting are the options from which you can choose depending on your needs. All of these will give you the feel of driving your own car without being an official owner. But, if you are confused between these then we are here to clear the clouds:

Car Leasing:

Leasing a car is a long-term solution that allows you to drive a car of your choice for a fixed and limited period of time, generally around 2-5 yrs. A leasing company will provide you with a car and you will use the car 24*7 but will not own it. In return for using the car, you will have to pay monthly rentals as decided by them. Here you become bound to use the car for the period you have leased. This is the most affordable option among the three.

All other costs like paying the road tax, insurance, maintenance expenses, etc would be paid by the company. At the end of the chosen lease period, you will have to return the car to the company. If you wish to take over ownership of the car, you will have to pay an amount specified by the company.

Car Subscription:

A car subscription is a monthly plan that grants you access to a range of vehicles against the subscription fee. Compared to a traditional lease or rent, most car subscription services have much more flexibility. You can subscribe to a car of your choice for 1 month to 1 year. With a car subscription, you do not have to spend extra money on maintenance or insurance, Insurance, as it will be included in the monthly package.

Here, you get more options while selecting the car and can often swap it out for a different one if you get bored using the selected model. You will also have more flexibility over how long you want the vehicle.

Car Renting:

Renting is a short-term solution where rental periods are typically from a day to 15 days and in some cases up to three months. There are also car rental companies that offer even a shorter period and may charge you per hour or kilometer.

The car rental charges are very competitive and the fee will depend on the make and model of car that you choose. For the longer term, the rental option turns out to be costlier and therefore impractical.

Comparision:

Conclusion:

If you are one who wants an alternative to buying a car and can be committed to one car for a longer duration then leasing is the preferred option as it is comparatively affordable and you also get the option of buying after the lease is over.

A car subscription would suit you the best if you want to drive for a medium-term for a period of at least a month and would like to change the car as per your needs. While renting is best for people who need a car for a very short period.