Kilometer Allowance: Leasing or Car Subscription?

If you want to drive a new car without taking financial risks, you often face a choice: leasing or a car subscription? Both options offer flexibility, but there are significant differences, especially when it comes to the kilometer allowance. Which one could cost you more if you exceed the planned kilometers?

Leasing vs. Car Subscription: What’s Included?

Car Subscription: Most costs associated with the car are already included in the monthly price – insurance, cantonal registration, tires, service, and maintenance.
Example: With Carvolution, this means that with a subscription for a Ford Puma, you only need to pay for fuel – everything else is covered in the monthly subscription fee.

Leasing: The lessee is responsible for covering all additional costs.
Example: For a comparable Ford Puma, you would need to arrange full coverage insurance and liability insurance, pay for regular servicing, and account for all tire-related expenses, such as tire changes and storage.

Another advantage of Carvolution’s car subscription: a best-price guarantee compared to leasing. Carvolution ensures that their subscription price is cheaper than the total costs of a comparable lease for the same car.

Kilometer Options: Flexibility or Fixed Terms?

Both leasing and car subscriptions involve an agreed-upon kilometer allowance. The key difference is flexibility: with leasing, the allowance remains fixed throughout the contract, while with a car subscription, you can regularly adjust your kilometer plan.

Leasing: The annual kilometer allowance is determined at the start of the contract, e.g., 10,000 km per year. This stays the same throughout the term. Changes are generally not possible. Any excess kilometers are charged at the end – often after 3 or 4 years – which can lead to significant additional costs.
Example: If your lease contract allows 10,000 km per year but you drive 15,000 km, you might pay CHF 0.40 per additional kilometer, resulting in CHF 6,000 extra at the end of the lease.

Car Subscription: Monthly adjustable kilometer packages, ranging from smaller packages of 350 km to larger ones with 3,250 km per month. The app provides real-time tracking, offering flexibility and preventing unpleasant surprises.
Example: If you drive 2,000 km one month for a road trip instead of the usual 1,000 km, you can either drive less in the following months to balance the total or temporarily increase your kilometer plan for that specific month and lower it again later. This way, you stay flexible and avoid additional end-of-term charges.

Unused Kilometers: What Happens?

In both leasing and car subscriptions, unused kilometers are generally not refunded.
With a car subscription, you have the advantage of reducing your kilometer plan monthly to avoid unnecessary costs.
Example: Driving less in winter? Adjust your kilometer plan and immediately benefit from a lower monthly fee. You only pay for what you actually use.

When Does Leasing Make Sense?

Leasing is worth considering if you want a specific model or configuration that is not available with a car subscription.
Example: A leasing contract might make sense if you want a luxury model or a fully customized car that isn’t offered as part of a subscription.

Conclusion

When it comes to kilometer flexibility, a car subscription offers far greater adaptability with its monthly adjustments, allowing you to stay on top of costs. For maximum flexibility and cost transparency, a car subscription is clearly the better choice.