The Limited Times

Now you can see non-English news...

Boom in vehicle subscriptions: car plus insurance for 200 euros a month

2021-03-25T04:31:22.393Z


A growing number of motorists are subscribing to a car instead of buying it. There are particularly tempting offers for beginners. However, consumer advocates point to disadvantages.


Enlarge image

Your own car for a limited period of time: Car subscription providers easily fulfill this wish - and are recording high growth rates.

Photo: Volvo

Keep your distance, wear a mask, reduce contacts - the corona rules have now been in place for more than a year.

Studies show that they have also changed mobility.

Many people avoid buses, trains and planes and prefer to drive longer distances by car.

In some cases, the desire for their own car is growing, at least until the situation has normalized again.

In any case, the demand for subscription cars that make this possible has risen sharply.

Market leader Fleetpool, to which the subscription services like2drive, Conqar and Eazy Cars belong, recorded a sales increase of 55 percent in Germany in 2020.

A total of around 42,000 car subscriptions were concluded last year, according to the Duisburg Center Automotive Research (CAR).

It will probably not stay at this number - also because VW and Volvo have recently discovered the market for themselves.

Ferdinand Dudenhöffer, director of the CAR, estimates that there could be around one million subscription vehicles in Germany by 2030.

Anyone who takes out a car subscription pays a fixed monthly price and receives a car for a limited period of time, similar to leasing.

However, the contract period is significantly shorter and usually varies between one and six months, depending on the provider and customer requirements.

The subscription price includes maintenance, taxes, insurance, TÜV and approval.

The user only pays for fuel or electricity.

"Customers are increasingly seeing car subscriptions as an interesting alternative," says management consultant Jan Burgard von Berylls.

"A subscription offers the possibility of a temporary car ownership, longer than with a rental car, but shorter than with long-term leasing offers."

Car manufacturers and rental companies such as Sixt have also recognized the growing interest; they offer their own subscription programs.

For manufacturers, this is also an opportunity to expand online sales.

Volvo, for example, only wants to sell new cars online from 2030.

This allows the manufacturer to set the price better - haggling in the car dealership is a thing of the past.

The Volvo sister company Lynk & Co. relies particularly heavily on the model.

"Car subscriptions will play an important role in tomorrow's car sales," says Dudenhöffer.

Test e-mobility in everyday life

The subscriptions also play a role when switching to the electric drive - it can simply be tried out for a few months.

The demand for e-cars increased significantly with many subscription providers in 2020, with Vive La Car by around 30 percent.

The Fleetpool brands recorded the highest growth for electric models.

According to company taxes, electric cars and hybrid models currently account for twelve percent at Fleetpool, and the proportion is set to increase.

An e-car subscription also protects the customer against loss of value - he passes the risk on to the provider.

The development of the battery and range of the electric models is in full swing, says Dudenhöffer.

This means that technology becomes obsolete quickly and the resale value falls.

Be careful with the mileage allowance

Conversely, drivers hope for new and, if in doubt, better e-cars with a subscription.

"Customers have the feeling that they can take leaps in innovation in terms of range and charging speed with them by flexibly changing vehicles with a car subscription," says Berylls expert Burgard.

They may also get to their vehicle faster.

The delivery time for a Polestar 2 bought from the manufacturer is around three months.

With a subscription, the car is in front of the door after a few weeks at the latest (Finn Car: from 750 euros).

E-cars are often more expensive than combustion models with a subscription, but this is offset by lower consumption costs.

A kilowatt hour of electrical energy at the charging station currently costs between 29 and 89 cents, depending on the provider, payment and billing method.

If you calculate with an average price of 50 cents per kWh and an average consumption of 17.6 kWh per 100 kilometers for a Mini Cooper SE (according to ADAC Ecotest), then a 100-kilometer journey costs 8.80 euros.

If you only charge at home, you can get by on a good five euros.

With a mini petrol engine, the fuel costs are at least 11 euros per 100 kilometers.

Driving electrically and saving is therefore possible.

However, caution is advised: the subscription providers have different kilometer packages on offer.

At Vive la Car, for example, the Nissan Leaf Tekna electric car with a 200-kilometer flat rate costs 299 euros.

With a monthly flat rate of 500 kilometers, it is twice as expensive.

Unused kilometers will be credited to Vive la Car, additional kilometers will be charged separately.

It is absolutely advisable to clarify the exact conditions of the respective provider.

Car subscriptions also for novice drivers

For novice drivers, car subscription costs of around EUR 300 per month are a lot of money.

But with many providers, very young drivers are excluded anyway.

With like2drive or Carminga you have to be at least 21 years old to take out a subscription, with Finn Auto even 23. The target group is primarily people older than 35, they say.

However, there are also exceptions to the age limit.

Vive la Car, for example, is targeting 18 to 21 year olds with a new offer.

There is a choice of vehicles with an output of up to 99 kW (134 hp) and a value of up to 20,000 euros, e.g. from Hyundai (i10, i20) or Ford (Fiesta).

Insurance costs are included for less than 200 euros a month.

The subscription models from VW (Das Auto Abo) and Volvo (Care by Volvo) also do not have a minimum age.

Consumer advocates warn against high deductibles

Since people under 23 have to pay almost twice as much for car insurance as older people, such a subscription seems interesting at first glance.

"The monthly subscription price should be comparable to the insurance premium for a novice driver," says the Hamburg consumer center.

However, it warns of the high deductible in the event of damage.

With the “Abo from 18” from Vive La Car, it is 1000 euros with partial and fully comprehensive insurance.

"Suppliers specifically address the younger target group - among other things to introduce them to a brand," says expert Burgard.

Some apparently accept losses or low margins.

Because new value chains that open car subscriptions are very tempting.

The British online used car company Cazoo recently took over the Munich subscription provider Cluno.

In the future, the British will only be offering new vehicles by subscription via Cluno - and then adding them to their range of used vehicles.

Source: spiegel

All tech articles on 2021-03-25

You may like

Tech/Game 2024-02-18T12:20:25.701Z
Tech/Game 2024-02-24T18:12:57.731Z
Tech/Game 2024-02-22T04:32:48.645Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.