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Is car subscription a form of car finance?

Car finance vs car subscriptions - how similar are they?
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If you’re looking to buy a car, then you might be wondering how similar car finance or car subscriptions are!

Car subscription and finance: Are they the same thing?

No. Car finance and car subscriptions are two completely different ways of owning a car.

Buying a car on finance (e.g. Personal Contract Purchase), allow you to choose a new or used car, pay for it over time and then you can own it at the end or part exchange it for a different one.

Car subscription is a service that provides you with a new car on a monthly basis, but the monthly payments do not contribute to you owning it once the agreement ends.

You can choose to return the car at any time during the subscription period. Most car subscription providers run on a monthly rolling contract, but companies like Care By Volvo have the option to fix a contract for 36 months.

Should you finance your car or subscribe?

Well, if you're looking to buy a new, or nearly new, car and depreciation is on your mind, then car finance may not not be a good financial decision.

But if you like driving new cars and don't want to worry about the cost of ownership, then you should considering vehicle subscriptions.

The best part about subscribing is that there are no interest rates or hidden fees; as long as you have a clean driving record, pass the affordability checks, then everything else will work out fine

On the other hand, some drivers would always prefer to own their cars which means subscription many not be the right fit.

This is a short read, so be sure to read our in-depth guides:

Browse all cars available on subscription

There are hundreds of cars available via UK subscription companies.

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