The first to catch the eye are the numbers with uppercase letters. This is the same for everyday shopping as it is when buying a car. For example, if the price tag says “from 995 francs per month,” the total will stick in your head. It is important to note what is in the fine print. Otherwise, customers will make false assumptions.
This is what the advisors at Carvolution have experienced time and time again. The car subscription provider is facing offers at the Swiss start-up that appear to be cheaper than the monthly fixed price. “Recently a customer said we were pretty expensive,” says Léa Miggiano, co-founder of Carvolution. “We noticed that a CHF 10,000 upfront payment was included when he sent us an offer from a competitor.”
In the model overview, Carvolution also gives prices “starting at XXX francs per month”. Anyone who then configures the duration of the subscription, the mileage package and the canton of residence can see which variable affects the price and how. The total then shows the fixed price.
Calculate installment down payment costs
In this particular case it was about the price comparison of the popular electric car Skoda ENYAQ iV 80. Carvolution offers this model for 1012 francs per month (duration 36 months, 850 kilometers per month, used in Zurich). With its rival, the car would have cost 995 francs per month – but with a 10,000 franc upfront payment.
If you add a down payment to the competitor during the term, the car costs 1,272 francs per month and is 9,388 francs more expensive over the entire period. The Carvolution subscription is therefore much more attractive in terms of price. Because new customers are charged an initial fee of 390 francs only for a one-time refund. No deposit is required.
Calculate total costs correctly
Cost transparency is especially important when purchasing a new vehicle. The promises in the ad show: more cars for less money. For example, if you are using your vehicle with a rental agreement, you should consider the total operating cost as well as the required upfront payment. Prices such as “from 995 francs per month” depend on the amount of the down payment, as shown in the example above.
There are also tax, insurance, maintenance, service and tire costs during the rental. That’s why Touring Club Switzerland (TCS) recommends multiplying the rental rate by three to accurately calculate total costs. With full service rentals only, or with most subscription providers, these costs are already included in the monthly fee.
In Carvolution, the monthly flat rate corresponds to the effective costs. This consists of the duration, mileage package and selected exemption for the full coverage insurance. Young drivers up to the age of 23 are charged an additional fee for insurance and is included in the flat rate. Drivers only need to pay separately for charging current or fuel.
It’s important to know that this affects rates for deposit offers. Anyone who invests CHF 10,000 before handing over the car saves on monthly payments. But the initial investment is gone. Anyone who does not have the necessary liquidity pays more for monthly installments. The down payment does not affect any purchase price after the end of the rental period. This is calculated based on the residual value and market price of used cars.
Set mileage package and save money
The agreed mileage package is also important: When it comes to rental agreements – but also with individual vehicle subscription providers – mileage is billed for the entire period. If you drive more, you have to account for the high costs for additional mileage.
With the Carvolution car subscription, mileage packages can be adjusted every month through the application. Anyone who reduces this also lowers monthly fixed costs. In addition, the app always shows how many kilometers have been driven. If a longer trip is planned, for example for a holiday trip, the mileage package can simply be corrected up and then down again.
Also note the differences in car subscription
The differences between subscribing your own car and a rental car are mostly in the duration, mileage and additional services offered, such as tax, redemption, insurance, service and tyres. With leasing, this has to be paid for by the customers themselves. This is usually included in the subscription. Leasing customers can configure their vehicles as they wish.
The Carvolution subscription offers a choice of around 70 well-equipped vehicles. Individual configuration is not possible. In contrast, the car subscription pioneer can offer attractive prices thanks to large order quantities and a lean, digitized process.
But there are also differences between subscription providers: with Carvolution, cars are redeemed in the driver’s canton of residence in his name. This makes it possible, for example, to obtain a residence permit. Thanks to the flexible subscription terms and the option to continuously adjust the mileage package, the car can be perfectly adapted to the changing requirements. If you want to know the cost of your dream car, you can compare the total costs with Carvolution or order a non-binding offer.