Subscription Instead of Buying or Leasing: A New Car Without Financial Risks?

Buying a car today is like a risky gamble: the investment is high, as are the uncertainties around residual value and technological advancements. The solution is a car without financial risks and full cost control: Carvolution's all-inclusive subscription.

Rising acquisition costs become a problem

The prices for new cars have increased again this year, according to auto expert Ferdinand Dudenhöffer. In particular, combustion engine cars are getting more expensive, with prices approaching those of electric cars. The average price for a new car was around CHF 60,000 on the Autoscout portal, while used cars were priced at an average of around CHF 37,000. Acquiring a car is a significant investment and, above all, an emotional decision. Those who want to avoid high investments can find a solution in Carvolution's car subscription with a fixed monthly price.

Decreasing residual value for cars?

A car loses value from the moment it’s registered. This has always been the case. But until now, one could expect and calculate a moderate depreciation. In the first year, it’s about 25%, and after three years, the car is still worth about half of its list price. That has changed. The development of residual values is now uncertain. Political decisions, environmental regulations, and technological advancements affect residual values. Potential bans on combustion engines create uncertainty for consumers. The residual value development of electric cars is also subject to fluctuations. With a car subscription, you don’t need to worry about this, as the vehicle is returned to Carvolution at the end of the subscription term.

Uncertain prices

A car that costs CHF 40,000 today could be available for CHF 35,000 tomorrow or become more expensive again due to supply shortages. This is due to unpredictable discounts and price fluctuations. “A Tesla buyer lost $10,800 overnight because prices were reduced after her purchase,” says Carvolution co-founder Léa Miggiano as an example.

For car buyers, this means high financial uncertainty. Anyone who invests their hard-earned savings in a car today risks being stuck with a vehicle whose residual value is unclear tomorrow. A high depreciation or a sudden price drop can quickly turn a perceived bargain into a financial trap. The true costs of a purchased car are usually only known when it’s resold. Carvolution offers full cost control with its all-inclusive subscription, with no residual value risk.

The alternative: Car subscription instead of car purchase

In times of uncertain new car prices, more and more people are looking for an alternative to traditional car purchases. The car subscription offers an interesting solution: use instead of own, that’s the motto. Instead of investing a large sum at once and leaving the car’s residual value to chance, more and more drivers are choosing the cost transparency and flexibility of a car subscription. Here, you pay a monthly fee and can use the car for a duration of your choice – without long-term commitments or financial risks.

Calculable costs

On average, the total costs of a mid-range car amount to about CHF 10,000 per year or over CHF 800 per month. A comparison of the total costs shows that the subscription performs better than purchase and leasing. Also, unlike traditional car purchases, there are no additional costs with a car subscription. Taxes, insurance, maintenance, service, and even tires are included in the fixed monthly price. Only fuel or charging electricity are separate. There is also no uncertainty regarding residual value or depreciation. The Carvolution subscription ends when you want it, and the risk of a sudden financial loss is excluded. For many, this is the safer, more relaxed choice – especially at a time when the car market is more unpredictable than ever.

More flexibility on the go

Subscription durations range from 3 to 48 months. This makes it easier to adjust the vehicle to changing needs. Or it gives the opportunity to test an electric car risk-free. With Carvolution’s car subscription, you can not only choose the duration but also adjust the mileage package monthly. If you go on vacation, you can easily increase it via the app and then decrease it again. If the car stays in the garage for a while, the mileage package can also be adjusted downwards.

One contact for everything

A major advantage over traditional car ownership is the fact that with a subscription, there is one contact for all questions. From tire changes at the partner garage to handling insurance or assistance in case of damage, everything can be handled via the Carvolution app.

Conclusion: The subscription advantage instead of the purchase risk

Anyone who buys a car today takes on a certain risk: the future of the car market is uncertain, influenced by political decisions, technological developments, and climate change challenges. Instead of investing savings in a vehicle whose residual value could be uncertain tomorrow, more and more people are opting for the security and flexibility of a car subscription. This way, driving can be enjoyed without the financial uncertainties of a traditional car purchase.