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Touring Club Switzerland expects a mid-range car to cost around 900 francs per month. When statisticians look at the average budget of families in Switzerland, they spend around 750 francs on mobility. The “Car Cost Index” from the world’s leading leasing provider LeasePlan calculates operating costs at around 1,100 francs.
The real costs are likely to be somewhere in between. The fact is that the majority of drivers underestimate total costs by approximately 50 percent, as shown by a joint study by the University of Mannheim and Yale University, USA, in 2020.
The comparison speaks for the subscription
The largest car subscription provider in Switzerland is also fighting these false assumptions. The concept of a fixed monthly price car is becoming increasingly popular. “But subscription fees are often criticized as too high,” says Carvolution co-founder Léa Miggiano.
He adds that the fixed monthly price seems high because, unlike the leasing fee, it includes the cost of the car as well as insurance, registration and taxes, service and maintenance, as well as tires. Additionally, unlike traditional leasing, there is no down payment in a Carvolution vehicle subscription, which makes monthly costs seem higher.
Because of these biases and the constant direct comparison of subscription and rental rates rather than a total cost comparison, Carvolution went on the offensive and offered a best price guarantee. This compares individual expense items to total operating costs in detail. To do this, customers can either submit a lease and insurance quote or place a comparison order for the selected configuration of their vehicle subscription directly via Carvolution.com. The cost comparison is non-binding and free for those interested.
A bold statement?
It is important to compare the same vehicle model with the same equipment and configuration. In other words, new cars with the same maturity, the same mileage package and no down payment. This is the only way to make a meaningful comparison.
Vehicle subscriptions at Carvolution are available for 3 to 48 months. Leasing is usually done for a period of 24 to 60 months. Mileage, i.e. the amount of kilometers traveled during the contract period, can be easily adjusted via the application when subscribing. Mileage package is fixed in rental.
With its best price guarantee, Carvolution promises drivers will get the best deal for their vehicle and won’t pay more than renting. Isn’t this a risky promise in the highly competitive automobile market? “No, because we know from more than five years of experience that our subscription model is very attractive in terms of overall costs, flexibility and simplicity,” says Léa Miggiano.
This is where economies of scale come into play at Carvolution. The Bernese start-up company can purchase vehicles, insurance and services in large quantities. Lean digital processes and avoiding expensive showrooms create an additional cost advantage that can be passed on to customers.
More flexible than leasing
In addition to the savings potential, the Carvolution car subscription offers other benefits that make it an attractive alternative to renting or buying a car. The flexibility of the subscription in terms of duration and mileage package makes daily life easier and ensures that the subscription can always be adapted to individual needs. Plus, everything comes from one source: everything from reimbursement to insurance is taken care of. Customers don’t have to worry about anything and can hit the road right away.
In the all-inclusive package, everything related to the vehicle is included in the fixed price – you only have to pay for refueling or charging: full comprehensive insurance, registration, taxes, service, maintenance and tires, as well as the first vignette are included in the subscription.
There is no down payment for a Carvolution subscription, but this is common for leasing. With a vehicle subscription, initial costs are low and the vehicle can be easily returned at the end of the term, so there is no residual value or risk of resale.
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.
