With the spread of technology to every sector of life, the way people use and own products are changing. A lot of things have changed from using CDs and DVDs to using Netflix and Spotify, or from using box television to flat screens and screen touch TVs. These are all noticeable changes.

The same can be said about the car ownership system. Many new systems have come up that can allow anyone to own a car as long as you’re qualified. People can now pay for car subscriptions or even rent to own cars. In this article, we’re going to examine both services.

What is a Subscription Service?

Many people may consider rent to own cars as a type of subscription service but rent to own car service is different from a car subscription service but they are both subscription services. A subscription service is a type of car ownership service where you can obtain cars for an agreed period.

Both services share the similarity of an all-inclusive payment that covers your use of the car and any other service put together in the agreement you signed when getting the car. Let us take a look at the differences between both services.

Rent To Own Vs. Car Subscription

A car subscription service is just like a rent to own, you are given a range of cars to select from and you pay for them like a subscription but you pay weekly and it’s not for a long term usually short-term deal. 

However, the payment for the car subscription depends on the model of the car. The car subscription service may also demand you have a stable income before they give you their car. 

Rent to Own cars is rather different. You are not paying to use the car for the short term. You’re making payments to own the car. The agreement is usually for a minimum of two years and their charges are not that expensive if you meet their qualifications.  

Car subscriptions usually have new cars on their catalogue. They may also give out used cars but the same cannot be said for Rent to Own cars as CarCoop for example, has a fleet of used cars on their catalogue for visitors to choose from.

Related Article: 5 Steps to Rent-to-Own a Vehicle with CarCoop

However, note that both services come with some form of agreement and requirements before you are handed the car. For the car subscription, you will be required to pay a joining fee to register for the subscription and you’ll also pay your weekly subscription fee for the car.

For rent to own cars, it’s equivalent to a down payment which is based on the cars’ model/make (car condition and outright pricing). You’re also required to make weekly payments for the car. The key difference is you’ll have an option to own, return or upgrade your car after the agreement. 

Conclusion

From this article, you can spot the key differences between the two services. While you can get new cars from car subscription services, with rent to own, you can own a car for as low as $1.00 after your contract period.

Remember that both services vary on terms too as you pay for a car subscription service for a short period while you can pay for rent to own for two years.