Car Subscription Vs Lease: Why Car Subscription Is Better

4 June 2024

Owning a vehicle isn’t easy, and it certainly is a pricey investment. If you want to have a vehicle but don’t want to purchase one outright, you are often faced with a less than ideal situation – To sign a car lease which will lock you in for longer than you want. However, with the introduction of car subscriptions, there is a smarter way to access a vehicle. This blog will examine car subscription vs lease and explore why car subscriptions are becoming so popular in Australia and around the globe, and what Karmo has to offer.

Car subscription services such as Karmo provides access to new and reliable cars for flexible terms

Car Subscription Vs Lease: What’s the Difference?

While both car subscriptions and leasing offer the opportunity to drive a vehicle for a predetermined period, there are key differences between them in terms of flexibility, inclusivity, and ownership.


  • Car Subscription — A car subscription usually involves a weekly payment for the use of a vehicle for a set amount of time, frequently with the flexibility to change vehicles at any time. Compared to leases, subscriptions may provide shorter terms, and you can frequently change or cancel them with little to no prior notice.
  • Lease — A lease is a fixed-term agreement, typically two or three years long, in which you pay a monthly fee to use a certain car. Leases usually do not provide the same flexibility as subscriptions, such as the ability to transfer vehicles or end the contract early without incurring penalties.


  • Car Subscription — Roadside support, maintenance, insurance, and sometimes even registration expenses are all included in the all-inclusive packages that car subscriptions frequently provide. This all-inclusive strategy gives subscribers peace of mind and streamlines the ownership experience.
  • Lease — While warranties and maintenance plans are occasionally included with leases, overall, they don’t offer as many complete services as subscriptions. Usually, lessees are in charge of making separate arrangements and payments for their upkeep, insurance, and other related expenses.


  • Car Subscription — With a car subscription, you do not own the vehicle; instead, you are essentially paying for access for the duration of your subscription. This means you do not have equity in the vehicle and must return it at the end of the subscription term.
  • Lease — In a lease, you do not own the vehicle either, but in most cases you’re obliged to purchase it at the end of the lease term if you wish. Leases often have a predetermined buyout price, encouraging you to acquire ownership of the vehicle and keep it.

Overall, car subscriptions offer greater flexibility and inclusivity with the option to switch vehicles and comprehensive services included in the monthly fee. Leases, on the other hand, involve a fixed-term contract with fewer options for modification and typically require lessees to arrange and pay for additional services separately.

Are Car Subscriptions More Expensive Than Leasing?

No. Car subscriptions are of better value for money. Considering you will never be paying for an old car and don’t have a looming balloon payment. The cost of subscription depends on various factors such as the class of the car, the term of use and other individual needs. However the convenience of a car subscription is unmatched. It’s an all-inclusive feature that covers all costs so that you will not have to worry about unforeseen costs or issues.

The cost also depends on the subscription provider. At Karmo, we offer prices that compare favorably to traditional car ownership, financing and leasing. Here’s what you can expect with a car subscription from Karmo: 

  • A super-fast application process and specialized staff to ensure you can pick up your car the same day.
  • Zero long-term commitment—choose from flexible plan periods that suit your requirements.
  • A range of brand new vehicles that you can switch between whenever you want.
  • A weekly all-inclusive payment that covers all car related expenses outside of fuel & tolls.

Car Subscriptions vs Leasing: For Whom Is It Worthwhile?

A car subscription is a hybrid between leasing and renting a car. It combines the advantages of both, making it a very attractive option for anyone looking to drive a vehicle. 

It’s ideal for consumers who want maximum flexibility and convenience – and want a permanent new car experience. Compared to leasing, the car subscription is particularly worthwhile if you:

  • Want to plan your car needs based on your present requirements
  • Want to be financially prudent and have a long-term vision for your spending.
  • Want to keep a flexible termination option open.
  • Want to experience different car models without committing long-term.

When it comes to leasing, this option is suitable for those who need high mileage needs for their car and are fine with managing the depreciation costs or paying a balloon payment at the end of their lease term. If you know your living and financial situation will not change in the next few years and you want to maximize use of your vehicle in the short term by running high kilometers, leasing is a great option. It is also suitable for consumers who don’t want to change vehicles from time to time.


Car subscriptions are a practical substitute for long-term leasing, giving customers who want access to cars without having to commit to ownership flexibility, inclusivity, and peace of mind. 

With car subscriptions, you can enjoy the freedom to switch vehicles, comprehensive services included in a single monthly fee, and the avoidance of arranging separate expenses. At Karmo, competitive pricing, swift service, and a range of brand new vehicles cater to diverse preferences and lifestyles, so visit us now and let us help you on your journey to owning a vehicle.

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