Car Subscription vs Buying a Car: Which Suits Australians Better?

With the ever-changing landscape of work and lifestyle, many Australians are now considering flexible driving options that fit their needs.

Car Subscription vs Buying a Car: Which Suits Australians Better?
12 April, 2023

While owning a car is essential for most households in Australia, buying a car may not always be the best option. Car subscriptions, on the other hand, are becoming increasingly popular as a low-commitment way to drive the car you want. But how do car subscriptions compare to buying a car, and which option is right for you?

What is a Car Subscription Service?

Similar to other subscription services like Netflix or Spotify, a car subscription service allows you to pay a monthly fee to access the car of your choice, along with added extras such as servicing, breakdown cover, and insurance. Car subscription services offer flexible short-term contracts with simple payment terms, making it easier for Australians to switch cars regularly and test drive new models without incurring huge fees. Plus, car subscriptions often come with extras like servicing, maintenance, and insurance included in the price, so there's no need to arrange them separately.

Why are Car Subscriptions Becoming More Popular?

While owning a car is often necessary in Australia, buying a car outright requires a significant financial commitment upfront. This can be challenging for many Australians, especially those who don't want to tie up their savings in a depreciating asset. Car subscriptions offer a more financially secure option, with no upfront fees and included extras that make it easier to budget for the total cost of car ownership. Car subscriptions also offer the opportunity to test drive different types of cars, such as electric vehicles, without committing to a purchase.

Car Subscription vs Buying a Car

When deciding between car subscription vs buying a car, several factors come into play. While car ownership may be more cost-effective in the long run, a car subscription may be a better option for Australians who want flexibility and short-term contracts. Here are some key differences to consider:


Buying a car requires a significant financial commitment upfront, while car subscriptions may cost more per month, but there are no upfront fees, and most packages include servicing, registration, tyres, breakdown cover, and even insurance.


Car subscriptions offer the flexibility to drive only when needed, without worrying about selling the car. You can simply hand it back to the provider when you're finished with it.


Buying a car is a long-term commitment, while most car subscriptions offer short-term contracts, allowing you to trial a car for as long as you want to, switch cars regularly, test drive brand new models, and cancel your subscription without incurring huge fees.

What's Included:

Most car subscriptions include car hire, included mileage, servicing and repairs, breakdown cover, and road tax, with many providers also including insurance and additional benefits.

In conclusion

In conclusion, while car ownership has its benefits, a car subscription may be a better option for Australians looking for flexibility, short-term contracts, and the convenience of having extras included in the price. By carefully considering the key differences between car subscription.

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