When you need a car for both personal and business reasons, the first option is often to borrow it from relatives. If this is not feasible, you must consider either buying or renting a new or used vehicle. In our country, buying a new vehicle can be costly due to high customs and special consumption tax rates. Conversely, rental options often come with many inflexible conditions, such as restrictions on how long the vehicle can be used, annual mileage limits, and insurance coverage.
Technological advancements and shifts in user demand have significantly impacted the automotive industry. As a result, a new option called vehicle subscription services has emerged, usually organized by automotive manufacturers. This service allows users to access various vehicles determined by the company through fixed monthly payments. Essentially, vehicle subscription services enable you to meet your transportation needs for periods ranging from a few days to a year without being tied to a single vehicle.
How Is Car Subscription Different From Rental and Car Sharing Services?
Vehicle subscription services are still offered by certain manufacturers and are available only in specific regions. Since each brand shapes its own vehicle subscription services, different options can be found in the market.
The monthly fee for a vehicle subscription service typically includes maintenance, insurance, and roadside assistance, in addition to vehicle rental. The cost of fuel used is the responsibility of the user.
Who Offers Vehicle Subscription Services?
As mentioned, vehicle subscription services are usually offered by luxury vehicle manufacturers. BMW was the first to launch such a service with its “Access by BMW” program, covering the Legend and M series. In 2017, Cadillac introduced its “Book by Cadillac” program.
The range of options in vehicle subscription services varies from company to company. For instance, Cadillac allows up to 18 vehicle swaps per year, while Volvo limits this to 1 swap.
Third-Party Services
Third-party companies offering vehicle subscription services often provide access to multiple brands. These vehicles may be used or previously leased, which can make these services more affordable than those provided by manufacturers.
For example, Carro, the largest automotive market in Southeast Asia, offers vehicle subscription services in Singapore. Carro provides various pricing packages, ranging from $1,200 to $2,000, with options to adjust packages based on user demands.
This development is significant in Singapore, the most expensive country in the world to own a car. Carro’s services help people manage both the high vehicle prices and the mandatory Certificate of Entitlement (COE), which costs $20,000 and grants the right to use a vehicle for 10 years.
