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Why is SIXT+ car subscription advantageous for private individuals?
Nowadays, private individuals have more diverse and accessible options for obtaining a car than ever before. Whereas in the past the only two options were to buy a car at full price or to agree on a leasing or credit agreement, now there are many more possibilities. Let's take a look at these options, their advantages and disadvantages.
Based on industry data, Finnish drivers travel an average of 10,000 to 15,000 km per year. People's daily needs and habits vary, so both the need for a car and the mileage driven can vary significantly.
Before considering which type of car use is best for you, ask yourself the following questions:
If most of your answers indicate that you do not need a car on a daily basis, then it may be worth considering short-term car rental or car sharing.
However, if you cannot imagine your daily life without a car, then it is worth considering one of the long-term car rental options – car subscription, operational or financial leasing, or car purchase.
More and more everyday services are available in subscription format, and car subscription has also been available in Finland for a couple of years now. Initially, the monthly payment for car subscription may seem higher, but it should be noted that the fixed monthly payment also includes expenses such as:
In other words, when subscribing to a car, the driver only has to fill up with fuel and windscreen washer fluid – the service provider takes care of the rest.
When signing a car subscription contract, a one-time contract fee may apply, but it is often quite low, not exceeding €500.
During the period of car use, for an additional fee for a limited time or for the entire duration of the contract, it is possible to expand the range of available services, adapting them to your needs. For example, insurance and roadside assistance abroad or a higher mileage allowance.
If you already own a car, we recommend calculating the money spent during the year not only on leasing and fuel, but also on repairs, insurance, taxes, tires, etc. Once you see this amount, you will be able to objectively compare the costs.
If a subscription is useful for private individuals with average or higher mileage, then short-term car rental is an excellent solution if you know for sure that you will only need a vehicle occasionally.
Car rental is most often used when traveling to visit more distant attractions that are difficult to reach by public transport.
However, the longer you use a short-term rental car, the more expensive it becomes on a monthly basis – at some point, you may need to consider switching to a long-term car rental solution, such as a car subscription. On the other hand, a significant advantage of car rental is the variety of cars available – you can change your rental car every day, depending on the number of passengers, cargo space or destination.
Car leasing is a financial service that allows you to purchase a car by paying for it in installments. This is an advantageous solution for those who do not want to or cannot pay the full price of the car immediately. Car leasing offers flexible payment terms and various leasing options.
Operating leasing
Operating leasing is a long-term car rental, during which the customer pays a fixed monthly fee for the use of the car. When the operating leasing contract expires, the customer has several options:
Financial Leasing
Financial leasing is a type of leasing in which the customer gradually purchases the car by making regular payments. At the end of the leasing period, the car becomes the property of the customer. Financial leasing is suitable for those who want to acquire a car in the long term and are prepared to take responsibility for its maintenance.
When is car leasing advantageous?
Car leasing is advantageous if everyday life without a car is unimaginable and a long-term solution is needed. It is also advantageous if you want to avoid large initial expenses and want to spread your payments over a longer period of time.
Purchasing a car by paying the full value of the car immediately requires the utmost care in choosing, as well as a lot of free funds. This usually means that savings are sufficient for the purchase of a relatively older and cheaper car, while a new car is a difficult dream for many to achieve.
When purchasing an older car, you have to take into account more expensive and unpredictable maintenance costs, as some of the car's components have already exceeded their planned service life. Fuel consumption is also relatively higher for older cars. On the other hand, the initial cost of purchasing a more modern car, including an electric car, is very high – tens of thousands of euros – but its value may depreciate faster than expected, as technology is developing very rapidly.
Buying a car is a good option if you know that you will be able to devote enough time and attention to maintaining your car – whether it's minor repairs or changing winter tires in your garage.
On the other hand, buying a car also has a significant bonus – you don't have to worry about various restrictions that may be included in the relevant rental terms and conditions. The car is yours and you can do with it as you wish – drive abroad, exceed your planned mileage, or even sell it after a few months or years.
Car sharing is a service similar to car rental, but unlike rental, which usually lasts several days or weeks, a shared car can be picked up on the street in the city for a trip lasting just a few minutes or hours, paying for the time and distance traveled. The price usually includes all services, including fuel or electric charging.
Car sharing becomes increasingly unprofitable as the number of consecutive days of use increases, as well as when traveling beyond the permitted area, for example, outside the Baltic States. In addition, the car may not always be available or may be located too far away to be easily accessible.
When using a shared car, you should also take into account that these cars are usually covered with advertisements for the car rental company's brand.
