The difference between a car subscription and lease: which option is right for you?
Sometimes the terms “private lease” and “car subscription” are used interchangeably. Which can be quite confusing. Private lease is even marketed as a car subscription at times. At first glace they also might look alike. However, there is a difference between these mobility options. Let’s break down what each one means and which might be the best choice for your needs.
Private Lease: Affordable long-term commitment
Private lease means you usually drive a new car for a set period, typically several years. You can often configure the car to your exact specifications and choose from many different milage bundles and contract periodes. The contract periodes may vary between providers but 4, 5 or even 6 years are very common for a private lease contract. You pay a fixed monthly fee that covers all fixed costs like maintenance, insurance, and taxes. This makes your expenses predictable without any unpleasant surprises.
If you’re considering a private lease contract, it’s important to be aware of the financial commitment involved. You’ll be entering into a multi-year agreement and will have a BKR registration (Dutch credit registration). This registration may impact other financial decisions, such as the possibility to buy a house.
Car subscription: Maximum flexibility because of short contracts
A car subscription also includes all fixed costs like maintenance, insurance, and taxes for a fixed monthy rate. However, a car subscription offers you a lot more flexibility. After a short minimum contract, you can cancel monthly at no extra cost. Plus, there’s no BKR registration involved, which is good news for your financal possibilities. This makes car subscriptions perfect if you want to drive a car without long-term commitments. These benefits usually mean that the price of a car subscription, in comparison to private lease, is a bit higher.
In most cases there is no guarantee that the car you will get is a brand new car. Often car subscription providers use well maintained used cars, which are as good as a new. This does however mean that you can not customize the car according to your exact specifications.
Which option is right for you?
Both private lease and a car subscription are convenient ways to drive a car without owning one and cover all fixed costs. In addition to the purchase cost of the car, they also include depreciation, insurance, road tax, and maintenance. You only need to pay for fuel (or electricity), parking fees, tolls, and fines.
The choice between a car subscription and private lease depends on your personal situation and preferences. Do you not mind making a commitment for 5 or 6 years, including a BKR registration, and want to customize the car according to your exact wishes? Then private lease might be a good option for you.
Do you prefer much shorter contracts, have the option to cancel on a month-to-month basis, do want not have a BKR registration and don’t mind not being able to customize the car? In that case a car subscription might be a better option for you.
Get started
A car subscription offers a flexible and transparent way to drive. With benefits such as no BKR registration, carefree driving, and quick delivery times, it’s an great alternative to traditional ways of travel. Interested? Get started 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, check out our available subscriptions.