Are Car Subscription Services Worth It? Here’s How to Decide

Q: What exactly are car subscription services?

Car subscription services provide access to vehicles for a recurring monthly fee that typically bundles insurance, maintenance, and roadside assistance, allowing users to swap or use cars without long-term ownership.

Q: How much do car subscription services typically cost?

Costs vary widely by provider and vehicle tier—from a few hundred dollars per month for budget plans to several thousand for luxury models—and may include activation or enrollment fees plus mileage rules.

Q: Are car subscription services cheaper than buying or leasing?

Usually not over the long term. Subscriptions can save money short-term by bundling expenses and avoiding down payments, but ongoing monthly fees often exceed ownership or lease costs over several years.

Q: What are the main advantages and disadvantages?

Advantages include bundled costs, maintenance included, flexibility to change vehicles, and lower credit barriers. Disadvantages include indefinite payments, mileage limits, limited availability, and potential provider instability.

Q: Who benefits most from car subscription services?

They suit people who value convenience and flexibility—urban residents, those who need different vehicle types occasionally, or people avoiding long-term loans—rather than buyers seeking long-term savings.

Published by

Clara

Apr 26

With smartphones and subscription-based services becoming ubiquitous, innovators in technology and automakers alike have rolled out a variety of car subscription offerings that challenge traditional car ownership.

In this piece, we’ll cover:

What car subscription services are
Typical costs of car subscriptions
The advantages and disadvantages of car subscription services
Whether subscribing to a car can save you money
The leading services on the market heading into 2023, ranked

What Are Car Subscription Services?

Generally, when you need a vehicle, you have several paths to consider:

Finance a new, certified pre-owned or used car.
Buy with cash, avoiding loan hassles when purchasing new, certified pre-owned or used vehicles.
Lease (basically a long-term rental) from a dealership for a fixed term with mileage and other constraints.

Alternatively, if you live in a walkable city or are traveling by air, you might only drive occasionally by renting from a conventional rental company such as Enterprise or Hertz.

Car subscription services occupy a middle ground between leasing and short-term car rentals.

When you enroll in a car subscription plan, you pay a monthly fee for access to vehicles — either on an as-needed basis or for a specific model for a set duration. This can be handy if you commute in a fuel-efficient sedan but need a truck for weekend projects or want to splurge on a sports car for a short time.

Although offerings differ, the cost is usually comprehensive. That means the subscription often includes insurance, roadside assistance and routine upkeep like oil changes and tire rotations.

Automakers such as Porsche, Volvo and Nissan have launched subscription programs, as have large rental firms like Enterprise and Sixt. You’ll also find brand-neutral providers like Drive Flow, YoYo and FreshCar, and in California, AAA offers subscription options. Borrow, a third-party provider offering electric vehicles in Southern California, is currently expanding its program.

Note: Several automakers, rental companies and tech startups previously ran subscription programs, but since the pandemic many have shut down or been bought by competitors.

How Much Do Car Subscription Services Cost?

Subscription prices vary widely.* Luxury automakers entering this space can charge four-figure monthly fees for vehicle access — and their clientele are often willing to pay those sums.

That said, not all subscriptions are pricey. Some manufacturers, like Nissan, have focused on more affordable options for used vehicles. Other independent startups operate different pricing structures across various cities.

Payment models differ among services. Some price by vehicle category, others by mileage; some have activation charges, while others tack on reservation fees.

Below are examples of market pricing:

Nissan Switch: $699 to $899 per month, plus $495 activation fee
Porsche Drive: $1,700 to $3,200 per month, plus $595 activation fee (waived for 3-month subscriptions)
Care by Volvo: $600 to $875, plus $500 activation fee
Sixt+: $649 a month for a Nissan Sentra or similar (sedan) to $1,269 a month for a Chevrolet Suburban or similar (SUV), plus a $199 sign-up fee
Subscribe with Enterprise: $1,499, plus a $250 enrollment fee
Drive Flow: $999 to $1,699 per month
YoYo: $99 joining fee plus $0.50 to $1 per mile
FreshCar: $499 to $599 per month (mileage plans, $0.40 per mile for overages)

Although subscription rates may appear steep initially, remember you won’t be handling separate insurance, registration, maintenance or repair costs.

*Prices in this article were accurate as of March 6, 2023. Market rates change frequently, so verify pricing on each provider’s site.

A man drives his vehicle at nighttime. — (*Getty Images*)

Is a Car Subscription Service Right for You?

Car subscription services may seem costly on the surface — and often they are — but they can also reduce expenses (and hassle) in other ways.

Pros of Car Subscription Services

Here are reasons a subscription model might suit your situation:

Bundled cost: You prefer one consolidated payment that covers registration, insurance and routine maintenance. That simplifies budgeting and reduces surprises.
Maintenance peace of mind: You like not having to schedule or perform maintenance like oil changes and tire rotations. Many subscriptions also include roadside assistance, eliminating the need for AAA-like services.
Flexibility: Numerous subscriptions let you rotate vehicles regularly. Switching cars is easier than if you owned or even leased one. Many plans also offer month-to-month, pay-as-you-go terms.
Poor credit: If your credit score is low or you’re wary of taking on more debt, a subscription can be a simpler way to access a vehicle. Note: If you’re deeply in debt and can’t get a loan, avoid using credit cards to cover subscription fees.
Convenience: Most services operate via apps, allowing complete management from your phone. A concierge may even deliver the vehicle to you.
Potential savings: If you can’t afford a down payment for a new car and face high insurance premiums because of who you are or where you live, a subscription that uses lower-tier vehicles might be a money-saver.

Cons of Car Subscription Services

There are downsides to consider before subscribing:

Ongoing payments: When you purchase a car, payments eventually stop — you own the vehicle. With a subscription, you may be making payments indefinitely.
Restrictions: Providers may impose mileage caps, forbid smoking and even limit pets in vehicles.
No negotiation: When buying a new or used car you can haggle; subscription fees are typically fixed and non-negotiable.
Business risk: The subscription industry has been volatile. Some companies may fail or be acquired, forcing you to find alternatives quickly.
Limited availability: Many programs are only offered in select major cities. If you move outside a service area, you may need to cancel and could face fees.

Can You Save With a Car Subscription Service?

Can a car subscription actually save you money? In most cases, probably not. Yet, if you pick budget-friendly options and view driving as a necessity rather than a luxury, savings are possible.

To illustrate, consider a hypothetical Sixt+ scenario.

As mentioned, a Nissan Sentra through Sixt+ costs $649 a month with a 1,000-mile allowance. You’d likely add at least the basic protection package ($99.99 per month), and there’s a $199 signup charge.

Using Sixt+ for a Nissan Sentra over three years would wind up costing roughly $27,162.64 plus taxes.

What if you bought a Sentra instead? Suppose you put down the initial fees comparable to Sixt+, and you buy the base Nissan Sentra priced at $19,950. With an estimated sales tax of 7.80% and an interest rate of 8.50% (based on Cars.com’s estimate for a solid credit score), a 36-month loan yields a monthly payment of about $673 — totaling $24,212 plus the $199 down payment over the loan term.

Don’t forget registration (varies by state; estimate $50 per year), insurance (an average of $1,601 per year, per Forbes) and routine maintenance costs (roughly $800 annually, according to AAA).

Financing a Sentra for three years would therefore cost about $31,764 — $7,353 more than the Sixt+ example over the same period. Of course, once you finish payments you can sell the car privately or trade it in. Depending on condition, you might recoup much more than $7,353.

However, using Sixt+ spares you the yearly task of registration, hunting for insurance quotes and negotiating coverage, plus the uneasy experience of haggling with a dealership at purchase and trade-in. All maintenance is included, so major repairs aren’t your responsibility as they would be with an owned vehicle.

Car Subscription Services, Ranked

Typically, independent (non-automaker) startups offer cheaper subscription options. Yet many third-party providers have come and gone over recent years — the list of services that folded or were acquired includes Mobiliti, Flexdrive, Carpe, Canvas, Inride, Carma and Less.

Automakers, by contrast, have deeper pockets. While brands like Cadillac and Ford exited the subscription space, several other manufacturers have stayed the course.

Signing with a third-party service can mean immediate savings, but be prepared for the possibility that the company might close or be bought, which could disrupt your subscription.

Therefore, we’ve separated our rankings into two groups: third-party services and automaker-backed subscriptions.

Vehicles drive across a bridge. — (*Getty Images*)

The Best Third-Party Car Subscription Services

1. YoYo

YoYo uses an unconventional subscription approach that suits many urban residents who only need a car occasionally. Registration takes minutes, the initial fee is reasonable ($99), and you’re billed per mile. Vehicles are delivered to your location, you can switch cars frequently, and fuel concerns are handled.

2. Drive Flow

We like Drive Flow for its tiered options. Pick the mileage and number of vehicles you need and pay one flat monthly rate. If occasional use is all you want, the Explorer tier (limited to 80 miles per day) can yield notable savings.

3. Sixt+

Sixt+ may not always be the most economical choice, but as shown above, a careful and frugal approach can make it cheaper over time for certain users.

Honorable Mentions: FreshCar and Subscribe with Enterprise. We also appreciate EV-focused Borrow, though its program is limited and currently paused while expanding.

The Best Automaker Car Subscription Services

A caveat: Most of these aren’t money-saving choices for thrifty consumers. If you’re seeking an indulgence and money isn’t the primary concern, these automaker programs are top-tier:

1. Nissan Switch

Nissan has stayed in the subscription arena with the Nissan Switch program. There’s a $495 activation charge and two pricing bands: $699 per month (Altima, Rogue, Pathfinder and Frontier) or $899 per month (Altima, Rogue, Pathfinder, Frontier, LEAF, Maxima, Murano, Armada, TITAN and 370Z). Plans include roadside assistance, car washes, maintenance, insurance and concierge services.

2. Care by Volvo

Volvo’s all-inclusive subscription, Care by Volvo, is model-specific with no swapping between models. Pricing varies and availability is limited; contact a Volvo retailer for details.

3. Porsche Drive

Porsche Drive (formerly Porsche Passport) isn’t for frugal drivers, but if you’ve longed to sample the brand’s high-performance lineup and can manage a $595 activation fee and monthly rates from $1,700 to $3,200, it’s an indulgent option.