Choosing whether to lease or buy a new vehicle is a matter of priorities. For some drivers, leasing or purchasing a vehicle is a financial decision. Others want to create an emotional bond with the vehicle. Some people just want to save their money for other things they see as more important. The car industry is an ever-changing world, always first to adopt new trends. Not just technical innovations but new concepts in marketing and sales. For decades, buying or leasing were the only two ways you could get your hands on a new set of wheels, but recently, subscription is a new way of using the car as your own without actually owning it. But how does it stack against the more traditional methods of obtaining the vehicles, and how does Karmo differ from traditional subscription? Let’s find out.
1. Buying
The first, the most straightforward and oldest way of obtaining cars is, of course, buying. Whether through a financing (loan) plan or by directly purchasing and paying the total price, buying gives you full vehicle ownership. From a financial standpoint, it can be the cheapest short term solution of establishing a fleet of vehicles, but you have to consider additional insurance payments, registration fees, maintenance, and fuel expenses. Besides those costs, depreciation is often one of those large hidden costs many people forget. After a couple of years, your vehicle will be worth only a fraction of what you had paid for it, and you might have a hard time selling it. Buying might be the cheapest way, but the commitment and depreciation factors along with erratic vehicle ownership costs are too much for some potential buyers and fleet managers.
2. Lease
Leasing can be considered a long-term rental is another popular way of obtaining the vehicles for your fleet. The leasing company will provide you with the cars of your choice for a monthly fee, and for a period of 2 to 3 years (or longer), you will operate said vehicles. Depending on the deal, the registration and insurance can be part of the package or be paid separately. Leasing is a good idea for companies in need of new vehicles or for companies that cannot buy large fleets. If you opt for this way, you will have less commitment than buying, you will be able to switch cars after the lease period is up, you will not have to worry about the depreciation and you won’t have the responsibility of selling the vehicles after their life cycle. However, the insurance rates for leased vehicles are higher, and often the limits of mileage imposed by lease companies are too low, which can cause some problems in real-life use. You will also be locked into the same vehicle for 2-3 years. But, regardless of all, the lease is a common way of getting vehicles for yourself or your fleet.
3. Subscription
The emerging and innovative way, designed to revolutionize how we perceive ownership and operate fleets, is car subscription. The basic idea is simple but effective. You’ll get access to a wide range of vehicles for an easy to understand weekly fee without committing to one type or class. You don’t need to pay insurance, registration, or maintenance bills, just a monthly subscription and tolls/fuel/charging costs. This way has proved to be very good for modern families, car enthusiasts, established companies or startups with modular business models. However, regardless of its innovative approach, it’s important to fully review the terms and conditions as well as the type and quality of the vehicle when talking with different car subscription companies. Firstly, the number of cars in other services can be limited, and you can often find that your dream vehicle may not be available immediately. Secondly, the quality or condition of alternative subscription cars on offer can be less than ideal and not satisfying for some customers. Thirdly, some subscription companies will hide fees when signing up, adding extra cost to the initial payment.
So what makes Karmo different from other subscription services?
Karmo is a new take on the standard subscription service. Karmo doesn’t offer any used vehicles, everyone receives a brand new car straight from the dealer. We make the new car experience permanent, as we change your car every 4, 6 or 9 months for a brand new one, straight from the showroom floor. We have access to new cars due to our unique partnership with dealers across Australia. It’s a win/win for our customers and our partnering dealers. Not only do you get new cars on a regular rotation, you get all the benefits of subscription for one weekly, easy to understand fee.
People have different life situations that affect the way they perceive car ownership. No matter what stage of life you’re at or what kind of relationship you have with cars, Karmo can cater to your needs.