If you need a new car, likely you've considered buying or leasing, but there is another option. You could subscribe to one.
With a car subscription, customers pay no down payment, then a flat, monthly fee to use a vehicle, which they will never actually own. Subscriptions are shorter than leasing (as short as one month) with flexibility to swap vehicle and cancel without significant penalties. They are not car rentals. They are designed to replace the primary car.
In addition, subscriptions usually cover insurance, maintenance, roadside assistance, registration, and taxes. Some plans even offer vehicle flexibility. Maybe you want an SUV for the weekends, but a compact car for weekdays.
Subscriptions are especially attractive for urban consumers who want access to Electric Vehicle technology, but want to keep up with evolving technology.
However, subscriptions could be more expensive than leasing. Here is an example:
2025 Toyota Corolla Hybrid ($28,000 MSRP):
Subscription: $450/month (includes all costs), total ~$16,200 over 3 years, no equity.
Lease: $350/month (excludes insurance/maintenance), total ~$14,600 over 3 years, buyout option ~$15,400.
Buy: $500/month (60-month loan, 6% APR), total ~$31,000, equity ~$15,000 after 3 years.
