Car Subscription Vs. Car Leasing: See How They Compare

Category: Car Subscription



A car subscription is a newer agreement for renting a car. It’s causing people to wonder whether this form of car rental is better than car leasing. While some people may benefit from a car lease, this option has its share of benefits. Let’s discuss. 

General Information 

When you have a car subscription, you don’t own that vehicle, just like you don’t own a vehicle you lease.

In the case of a car subscription, the automaker you subscribe to the vehicle retains ownership rights. You, in return for paying a regular fee, have the vehicle to use during the agreement period. 

Leasing is a practice throughout Canada and the U.S. However, with the regulations, it’s not so pleasant in some states and provinces, and therefore, it’s not a common practice. Currently, as of 2022, not all states and provinces have car subscription options available. 

Mileage Comparison

A car lease will have specific restrictions as to how many miles you put on the vehicle before you have to pay extra. You’ll then need to pay a certain fee per mile. Although the terms vary, they’re usually between 500 and 3,000 a month. Very rarely will you find a car lease that provides you with the option of unlimited miles. And if you do, you’re going to pay a much higher price than a standard lease.  

The same concept applies to car subscriptions. You have a strict amount of miles you can put on the vehicle. Any more than that will require you to pay an extra per mile. The number of miles varies from plan to plan. As with leases, you can find subscriptions with unlimited miles, but these are uncommon and more pricey. 

What the Fee Covers 

No matter if you lease a car or subscribe to one, you’ll have a regular fee you need to pay to either the dealership or manufacturer. When you lease a vehicle, the fee covers the cost of how much the car will depreciate during the lease. Plus, you’ll also have interest and some other fees. 

If you have a lease, you’ll need to pay for unanticipated repairs and any maintenance required throughout the lease, such as changing the oil. Usually, at the end of the lease, you’ll need to pay for any excessive wear and tear. You’ll need to have any work done on the car completed by one of the leaser’s approved mechanics, or you’ll break your lease terms. 

You also need to have an insurance policy on a vehicle you lease that you pay separately.

The price of a car lease is less than purchasing a brand new vehicle and the one you subscribe to, but you must also take into consideration the extra fees you must pay besides the lease fee itself. 

Whenever you choose to have a vehicle subscription, you pay a regular fee, just as you would with a lease. However, this fee includes maintenance, repairs, and often the cost of insurance as well. It’s higher than the price of a lease, but it’s all-inclusive.  

While you can change vehicles at the end of your lease, you have the same automobile during the entire lease agreement. Some car subscription programs allow you to switch your vehicle throughout the agreement. 

Term Flexibility 

As a general rule, the car rental terms with a car subscription are more relaxed than that of car leasing. 

You can get a subscription agreement that’s shorter than a lease. In fact, you can even subscribe to a car on a month-to-month basis. The average lease lasts 12 months or more. Although there are dealerships that offer month-to-month leases, this isn’t normal, so you may have difficulty finding one. We should note that the length you can subscribe to a car is more than a rental vehicle agreement.

A car subscription lets you cancel your contract easier and less expensively than you could with a lease.


Several factors affect which one is cheaper in the long run based on your particular situation. For instance, if you only plan to use the vehicle for a short time, you could save money with a subscription. If not, and you choose a lease, you could find yourself keeping the vehicle much longer than you want or spending a fortune to end the lease.

A subscription plan with a car-swapping feature could cost you quite a bit of money when you consider your monthly fee also covers the cost of maintenance and insurance. The car-swapping option also allows you to drive a new car available in the car subscription fleet. 


You can’t find car subscriptions everywhere, but you can find lease agreements anywhere. Leasing terms, however, aren’t favorable for the lease in all states and provinces. But, you can lease various makes and models of cars. As of right now, you’re limited as to which makes and models you can subscribe to from a manufacturer. 

Car subscriptions have numerous benefits when compared to car leasing as a long-term car rental option. This is especially the case if flexibility is a priority.