What is a car subscription and why is this service gaining popularity in Ukraine?

Recently, car subscription services have become increasingly popular in Ukraine. It allows individuals to use a car without having to buy it. This service opens up a lot of possibilities, and it is also convenient and saves a significant amount of money. Let’s see why it is so appealing.

What is a subscription car rental?

Unlike traditional vehicle ownership, car subscriptions allow customers to pay for the use of a car for a fixed period of time for a fixed monthly fee.

A subscription car is available without a down payment. It is possible to change the car at any time. In general, you can get access to a car within one business day of applying.

An important feature is the minimum rental period, which is usually at least six months. At the same time, the cost of the service is even cheaper than car rental. A car subscription also allows customers to travel abroad, and the CASCO deductible is reduced to zero.

Another important aspect is that the cost includes not only the subscription car rental, but also the deduction of its cost only for the period of use, CASCO and CMTPL insurance, maintenance, the possibility of replacement, substitution for the period of repair, installation of new tires and their seasonal storage.

This service is available throughout the Western world. Customers can use a car and pay only for the period when they actually need it. At the end of the lease term, the user can return the car or buy it back from the service provider at a residual value.

Why is classical car ownership becoming less popular?

Classical car ownership, which involves the full purchase and maintenance of a car, is gradually losing popularity due to the:

• Financial constraints. The cost of the car itself, insurance, maintenance, fuel, and repairs is a significant burden for most people.
• Rapid changes in technology. Cars quickly become obsolete, and over time, new technologies become the industry standard. To meet it, you have to buy a new model.
• The growing popularity of alternative travel options. Car sharing, subscription rental are convenient replacements for traditional vehicle ownership.

In this regard, the concept of monthly subscription car rental is becoming more appealing to those looking for more flexible and cost-effective travel options. Moreover, modern providers in Kyiv offer subscription cars with a buyout option from leading automakers: Hyundai, BMW, Volkswagen, Volvo, etc.

How does a car subscription work?

The process is very simple and takes several stages:

1. The client chooses a car that meets their needs and requirements. The assortment may include different car brands and models, which allows you to find the best option.
2. The client enters into an agreement that sets out the terms of car use. These include the minimum subscription car rental period, the amount of the monthly fee, and other conditions (mileage limit, insurance, etc.).
3. One of the main advantages of the subscription is that there is no need for a down payment or credit obligations. The customer can start using the car without significant upfront costs. The process of purchasing and receiving a car is very fast. The customer can get access to the car within one business day.
4. At the end of the subscription period, it is possible to return the car or buy it back at the residual value.

Why is subscription more convenient and easier than buying a car on credit?

In case of subscription, there is no need to make a significant down payment, which avoids the financial burden. Whereas a loan is granted only with a substantial down payment (at least 20% of the car’s value).

The subscription does not establish any credit obligations to a bank or financial institution. The client gets access to the car for a specified period, does not pay interest and does not incur additional costs.

With a subscription, there is always the option of replacing the car. Of course, this is unrealistic on loan terms. And the process of getting a car through the subscription is faster and less bureaucratic than taking out a loan. And the subscription price often includes additional services.

What is the difference between a car subscription and an operating lease?

Car subscription and operating lease are two similar services in concept, which have no differences in essence. Both services are available to individuals and involve signing an agreement to provide a car for use for a certain period of time with the condition of buying out or returning the car to the owner at the end of the lease term. Additional services, the possibility of replacing a car – all this is provided for in the terms of subscription and operating lease. So we can consider these terms as indicators of the same service.

Read also:
Car leasing: what is it and how does it work for individuals?

Is it possible to sign up for a car subscription with 7Cars?

7Cars offers a wide range of cars for subscription at low costs. You don’t need to worry about maintenance, insurance, and other aspects, as they are all included in the subscription package. Interested? You can take a car on operating lease on the 7Cars website.

Car subscription in Ukraine is a modern and convenient way to use a car without unnecessary expenses and responsibilities. The 7Cars service makes this process as simple and affordable as possible for everyone.