By Australian Auto Rentals ·
Car subscription, monthly rental or buying: how to choose
If you need a car for months rather than days, there are four common options: buy one, lease one, subscribe to one, or rent one month to month. The cheapest choice depends mostly on how long you need the car and how certain that is.
Buying
Buying gives you the car for as long as you like, but you pay up front or through a loan, then registration, insurance, servicing and tyres. When you sell, the car is worth less than you paid. For a short stay, that loss in value can cost more than renting.
Leasing
A lease spreads the cost over several years in exchange for a long commitment. Ending one early can be expensive. It suits people who are certain they will need a car for the whole term.
Car subscription and monthly rental
A subscription and a monthly rental both give you a car month to month without owning it. Subscriptions are often sold as one bundled price; monthly rentals vary in what they include. In both cases the questions are the same:
- What is included: registration, insurance, servicing, tyres, roadside assistance.
- The kilometre allowance and the cost of going over it.
- The bond, and how and when it is returned.
- The minimum period and the notice needed to end it.
- Whether you can swap the car.
A simple way to decide
If you need a car for under a year, or you are not sure how long you will stay, a month-to-month rental or subscription is usually the lower-risk choice. If you are sure you need a car for several years, buying or leasing usually costs less per month. Ask each provider for the full cost for your expected period and compare totals, not headline rates.
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