The most comprehensive guide on choosing an electric car subscription vs buying. Electric car subscriptions and owning both have their own set of pros and cons, and the choice between the two ultimately depends on the individual’s needs and preferences.
Owning an electric car has the advantage of giving the owner complete control over the vehicle. The owner can customize it to their liking, and they also have the freedom to drive as much or as little as they want. Additionally, it can also be a good investment as the value of some electric cars is expected to increase in the coming years.
On the other hand, electric car subscriptions offer a more flexible and convenient option for those who do not want the long-term commitment of owning a car. With a subscription, the individual has access to a variety of electric cars and can change cars as often as they like. Additionally, the cost of maintenance, insurance, and charging is included in the subscription fee, making it a more affordable option in the short term.
Pros of Electric Car Subscriptions:
- Flexibility: With a subscription, you can switch between different models and brands as your needs change, without being locked into a long-term commitment.
- Convenience: You don’t have to worry about the maintenance and upkeep of the vehicle, as it is taken care of by the subscription service.
- Easy Upgrades: You can easily upgrade to a newer model when it becomes available, without having to go through the hassle of selling your old car.
- No Depreciation: You don’t have to worry about the depreciation of the vehicle, as you are not the owner.
- No Insurance and Registration: You don’t have to worry about insurance and registration as it is included in the subscription
Cons of Electric Car Subscriptions:
- Limited Mileage: Subscription services often have mileage limits, which can be restrictive for some drivers.
- Limited Availability: Electric car subscriptions may not be available in all areas, limiting your options.
- Limited Customization: You cannot customize the car as you are not the owner.
- No Resale Value: You can’t resell the car, so you will not get any return on your investment.
- Limited Long-term Savings: While electric car subscriptions may seem cheaper in the short term, over time, buying an electric car can be more cost-effective.
Pros of Buying Electric Cars:
- Ownership Experience: When you own a car, you have complete control over it and can customize it to your liking.
- No Mileage Limits: You can drive as much as you want without worrying about any mileage limits that come with a subscription service.
- Resale Value: You can resell the car and potentially get a return on your investment.
- Long-term Cost Savings: Buying an electric car can be more cost-effective in the long run.
- Government incentives and tax breaks: As an owner, you can take advantage of government incentives and tax breaks.
- Minor Damage: You do not need to worry about the financial penalties of any light scratches or car park dents that may be incurred with a subscription.
Cons of Buying Electric Cars:
- Higher Upfront Cost: Buying an electric car can be more expensive than a traditional gasoline car and can potentially cost more per month than an EV subscription. This of course depends on the term, interest rate and deal you may get.
- Maintenance and Upkeep: As the owner, you are responsible for the maintenance and upkeep of the vehicle.
- Depreciation: Cars depreciate in value over time, meaning you may lose money if you decide to sell it in the future.
- Insurance and Registration: As an owner, you are responsible for insurance and registration.
- Limited model availability: Depending on your location, the availability of certain electric car models may be limited.
Real world Examples
Statistics show that the demand for electric car subscriptions is on the rise. According to a report by Frost & Sullivan, the global electric car subscription market is expected to reach $3 billion (£2.43bn) by 2025. This is primarily due to the increasing awareness about the environmental benefits of electric cars and the convenience of subscription models.
In the U.K, the cost of electric car subscriptions varies depending on the company and the type of vehicle. For example, a company like OnTO offers subscriptions starting at £399 per month for an electric Fiat 500 or £499 for the slightly roomier Zoe. While Volvo offers subscriptions starting at £699 per month for a high-end electric SUV.
When comparing the cost of electric car subscriptions to owning an electric car, it’s important to consider the total cost of ownership, including the cost of maintenance, insurance, and charging. According to a report by GoCompare, the total cost of ownership for an electric car can be up to 30% cheaper than a petrol or diesel car.
Customers who have tried electric car subscriptions have reported positive experiences. They appreciate the flexibility and convenience of the subscription model, as well as the opportunity to try out different electric cars. Some have also noted that the cost of ownership is lower than they expected.
Which Is Best?
So, electric car subscription vs buying. Which is it for you? First, let’s discuss the advantages of electric car subscriptions. Perhaps the biggest joy is the flexibility it offers. With a subscription, you can switch between different models and brands as your needs change, without being locked into a long-term commitment. This is especially useful for those who like to change cars frequently or want to test drive different models before making a purchase.
Another benefit of electric car subscriptions is the convenience it offers. You don’t have to worry about the maintenance and upkeep of the vehicle, as it is taken care of by the subscription service. Additionally, you can easily upgrade to a newer model when it becomes available, without having to go through the hassle of selling your old car.
On the other hand, buying an electric car has its own set of advantages. One of the biggest benefits is the ownership experience. When you own a car, you have complete control over it and can customize it to your liking. Additionally, you can drive as much as you want without worrying about any mileage limits that come with a subscription service. While electric car subscriptions may seem cheaper in the short term, over time, buying an electric car can be more cost-effective. Additionally, when you own a car, you can take advantage of government incentives and tax breaks.
So which is best? There really is no completely right or wrong answer, both have their own benefits and pitfalls. It really does come down to personal circumstances and lifestyle. However, looking at this from price alone, it can be more cost-effective to utilise a subscription over the short term with ownership making more sense over multiple years.
Electric Car Subscription FAQ’s
What is an electric car subscription?
An electric car subscription is a service that allows individuals to have access to an electric car for a monthly fee, without the long-term commitment of owning a car. The cost of maintenance, insurance, and charging is typically included in the subscription fee.
How does an electric car subscription work?
The process of subscribing to an electric car typically involves signing up on the company’s website, selecting the desired car, and making a monthly payment. The individual can then have access to the car for the duration of the subscription. Some companies also offer the option to swap cars or end the subscription early.
What are the benefits of an electric car subscription?
Some of the benefits of an electric car subscription include flexibility, convenience, and cost savings. With subscriptions, you can switch cars as often as you’d like, and the monthly fee covers the cost of charging, maintenance, and insurance. Additionally, it eliminates the long-term commitment of owning a car.
How much does an electric car subscription cost?
The cost of an electric car subscription varies depending on the company and the type of vehicle. Some companies offer subscriptions starting at around £399 per month for a small electric car, while others offer subscriptions starting at around £699 per month for a high-end electric SUV.
Can I end my electric car subscription early?
Some companies offer the option to end an electric car subscription early. However, it’s important to check with the specific company for their policy on ending subscriptions as it may incur a fee.
Are there any additional costs associated with an electric car subscription?
The cost of maintenance, insurance, and charging is typically included in the subscription fee. However, some companies may have additional fees for things like extra mileage or damage to the car. It’s important to check with the specific company for their policies and any additional costs.
Electric Car Ownership FAQ’s
What are the advantages to owning an EV?
Some of the benefits of owning an electric car include lower fuel costs, reduced emissions, and government incentives. EV’s generally enjoy more cost-effective running costs than petrol or diesel vehicles. Primarily because electricity is cheaper than traditional fuel. Additionally, electric cars produce zero emissions which is beneficial for the environment and more cost-effective in low-emission zones. Governments around the world also offer incentives for electric car owners, such as tax credits and rebates.
How does the process of buying an electric car differ from buying a traditional gasoline car?
The process of buying an electric car is similar to buying a traditional internal combustion car. However, there are some key differences to consider. One of the main differences is the cost, as electric cars are typically more expensive to buy than their petrol/diesel counterparts. Additionally, the process of charging an electric car is different from refuelling, so it’s important to research charging options and infrastructure before making a purchase.
How much does it cost to charge an electric car?
The cost to charge an EV depends on the cost of electricity at your home. Costs of charging stations can vary slightly too. On average in the UK, it costs around 28p per kWh to charge an electric car. This means that it would cost around £15.10 to fully charge an EV with a 60 kWh battery.
How long can it take to charge an EV?
The time it takes to charge an electric car depends on the type of charging station and the battery capacity of the car. Charging at home using a Level 2 charging station typically takes around 6-8 hours for a full charge. Fast charging stations, also known as Level 3 or DC Fast Charging stations can charge an electric car to 80% in around 30 minutes.
Q: How far can an electric car travel on a single charge?
The distance an electric car can travel on a single charge varies depending on the make and model of the car. On average, electric cars have a range of around 200 miles per charge. However, some electric cars can travel up to 550 miles or more per charge.
Are there government incentives for buying an EV?
Governments around the world offer incentives for buying electric cars, such as tax credits and rebates. Incentives vary by country and by state. Don’t forget to find out about current incentives available in your country before buying.
Conclusion
In conclusion, electric car subscriptions and owning both have their own set of pros and cons. Owning an electric car gives the owner complete control over the vehicle and can be a good investment, but electric car subscriptions offer a more flexible and convenient option.
The demand for electric car subscriptions is on the rise, and the cost of ownership can be lower than expected. Customers who have tried electric car subscriptions have reported positive experiences. Ultimately, the choice between these depends on your needs and circumstances.
We hope you have enjoyed this article on electric car subscription vs buying. Please let us know in the comments below about your own EV or purchase experience.
