class=”sc-29f61514-0 jbwksb”>
If you have to watch your budget, the prospects are pretty depressing despite the great summer weather: everything will be more expensive. Many face rising rents and higher health insurance premiums. In addition to these important items, cars are also important in many households. Swiss Touring Club assumes an average cost of 830 francs per month for a mid-range car. Global rental provider Leaseplan calculates the total cost in the “Automobile Cost Index 2021” at approximately 1,100 francs.
Given these sums, it’s worth optimizing your car spending. It starts with the purchase: At least one initial investment is required to purchase or lease. The effort and costs involved in insurance, taxes, maintenance and tires must also be considered.
«Simple and inexpensive»
“The biggest advantage of a car subscription is that it’s a flat fee,” said René Mitteregger of Auto-i-Dat, a vehicle data provider in “New Zealand”. As a user, you know exactly the monthly cost of the car. According to the report, a cash-only purchase is cheaper if you drive the car for a long time.
Ferdinand Dudenhöffer, head of the CAR Institute in Duisburg, also sees many advantages in subscription: “The car subscription is simple, transparent and inexpensive for the customer.” This is because Carvolution, for example, offers well-equipped vehicles, but does not take into account individual equipment demands. As a result, customers benefit from a lean cost structure, thanks to volume discounts at the time of purchase and digitalized processes.
The well-known auto expert predicts strong growth for the subscription model. On the one hand, because of the prices, but also because it allows testing new technologies such as electric drives. “With a car subscription, the risk is taken from the customer, which is what makes it so attractive,” says Dudenhöffer in the German “Handelsblatt”. Neither possible workshop costs nor increased insurance premiums will burden customers.
potential savings car
Many providers have now realized the potential of subscription. Five years ago, the newly established Carvolution took the industry by surprise with its subscription offer. Meanwhile, the model has proven itself as an alternative to rental and purchase. At first glance, the monthly costs may seem high, especially when compared to leasing. Léa Miggiano, co-founder of Carvolution, knows this too. But insurance, tax, maintenance or service expenses should also be calculated for the pure rate. Subscription outperforms rental, according to comparisons by Comparis and the consumer magazine “Saldo”.
Total expenses play an important role in the household budget, as the car is the main mode of transport for many people in Switzerland. Therefore, it is worth calculating and recalculating exactly how the need for mobility affects your wallet. Unlike other fixed costs, this is where the savings potential is most likely to be identified. This does not mean reduced mileage reflected in lower fuel costs, but rather higher costs for purchase, insurance and maintenance. Costs that often spread throughout the year and tend to be forgotten in financial planning.
Flexible term, flexible mileage package
If the economic situation changes, exiting the rental agreement or selling the vehicle involves loss. With a car subscription, the situation is different: here a car can be used for a freely selectable time. At a fixed monthly price. Of course, drivers are also subject to the contract period. However, significantly shorter useful lives are possible than for leases, and often a high down payment is no longer necessary.
With the vehicle subscription, all costs other than fuel or charging current are included in the flat price. With clearly calculable costs, financial surprises can be avoided and the household budget can be accurately planned. With Carvolution, Switzerland’s largest provider of car subscriptions, mileage can also be adjusted monthly. The mileage package can be easily increased or decreased via the app, depending on your needs – for example, when going on vacation. This has a direct impact on costs.
Source: Blick
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
