What to consider when choosing between a car subscription and short lease
When selecting a mobility solution for a car for the short to medium term, you have various options, including a car subscription and short lease. Each option has its own pros and cons, depending on your personal and financial situation.
In this blog, we’ll discuss what to consider when choosing between a car subscription or short lease for a period of a few months to two years.
What is a car subscription?
A car subscription is a flexible and carefree way to drive a car without long-term contracts. With a car subscription, you pay a fixed monthly fee for the use of a car, including maintenance, insurance, and road tax. The biggest advantage is the flexibility: after a minimum period, you can cancel the subscription on a monthly basis.
Read more about car subscriptions.
Advantages of a car subscription
- Flexibility: You are not tied to long contracts and can cancel on a month-to-month basis after a short initial term.
- No BKR registration: Your credit rating is not affected.
- Transparent all-inclusive fee: All costs are included in the monthly fee, with no hidden costs.
- Fast delivery: Your car will be at your door within two weeks.
- Carefree driving: Maintenance, repairs, insurance, and road tax are all included.
What is short lease?
Short lease is a form of car lease with a shorter term than traditional lease contracts. It offers more flexibility than traditional leasing but less than a car subscription. Short lease contracts typically range from one to 24 months. A key feature of short lease is that there is often a maximum term after which you must return the car.
Advantages of short lease
- Shorter contracts: you are not bound by multi-year contracts.
- Lower monthly costs: often lower monthly fees compared to a car subscription.
- New cars: you often drive new or nearly new cars.
Comparison between car subscription and short lease
| Feature | Car subscription at KINTO Flex | Short lease |
|---|---|---|
| Term | Monthly cancellable after a minimum term | Fixed term |
| Flexibility | Highly flexible | Flexible, but less so than a car subscription |
| Maximum term | No maximum term | Often a maximum term |
| Costs | Includes maintenance, insurance, and road tax; higher monthly fee | Lower monthly costs, possible extra costs for maintenance and insurance |
| BKR registration | No BKR registration | Usually no BKR registration |
| Maintenance and insurance | Included in the monthly fee | Sometimes included, otherwise extra costs |
| Mileage limits | Mileage bundles | Depends on the contract |
| Transparency | Transparent all-inclusive rate, no hidden costs | Possible hidden costs |
| Quick delivery | Within 2 weeks | Depends on the leasing company |
| Specific requirements | Fewer options for very specific needs | More options for specific car configurations |
| Ease of use | Carefree driving, all worries taken care of | Carefree driving, but less flexible in case of changes in car needs |
Term
- Car subscription: Ideal if you want flexibility and are not sure how long you will need a car. After a minimum term, you can cancel on a month-to-month basis.
- Short lease: Suitable if you need a car for a specific, shorter period. Keep in mind that there is often a maximum term after which you must return the car.
Costs
- Car subscription: Includes all costs (maintenance, insurance, road tax), but often with a slightly higher monthly fee. Like renting a car, a deposit is often required.
- Short lease: A slightly lower monthly fee than a car subscription, but additional costs for maintenance and insurance may apply depending on the terms.
Flexibility
- Car subscription: Maximum flexibility with monthly cancellable contracts after a short initial minimum term.
- Short lease: : More flexibility than traditional leasing but less than a car subscription. You are tied to your car choice and must sign a new contract for changes.
Ownership and BKR registration
- Car subscription: No ownership and no BKR registration.
- Short lease: No ownership and usually no BKR registration.
Choosing between short lease or car subscription
When choosing between a car subscription and short lease, it’s important to consider your personal and financial situation. A car subscription offers maximum flexibility and carefree driving without BKR registration.
Short lease is suitable for shorter periods with lower monthly costs. Both options have their own benefits, and it’s up to you to determine which best fits your needs.
Are you interested in a flexible and carefree car subscription? Build your own car subscription now and discover the freedom and flexibility of KINTO Flex. For more information about our car subscriptions and to see which model best suits you, view our available subscriptions or request a free consultation call.