Company car subscription or company car leasing? Aren’t they the exact same thing? If you’re asking yourself this question while reading this you’re not alone. We get it. Both solutions allow you to drive brand-new cars without having to pay upfront. So what’s the difference? The difference is flexibility. The flexibility to pick, choose and change your company car whenever you need to versus fixed-term lease agreements with absolutely no wiggle room. While we might be a little biased, both options come with great benefits. Let’s figure out the right solution that’ll fit your exact business needs.
Company car subscription or company car leasing — Here’s how they’re different
Before we get started on telling you all about the great benefits of a company car subscription in detail, let’s first talk about how it’s different from traditional company car leasing. Because it is different, we promise. This guide will help you make an informed decision between a company car subscription or company car leasing.
|Company car subscription||FEATURES||Company car leasing|
|No large up-front investment required|
|Large selection of premium cars|
|Option to change cars monthly|
|Grow, upgrade or downsize your company car pool at your discretion|
|All-inclusive monthly fee with no additional costs for maintenance or repairs|
|Insurance and registration included in the fee|
|Less administrative overhead|
|International mobility solutions with one account|
|Option to buy your car after end of contract|
|Fixed-term lease agreement|
|Fixed mileage package for the contract duration|
Let’s talk money: Why company car leasing might not actually save you as much money as you think
- Additional costs on top of your monthly fee
While at first glance the monthly fee for a car lease seems relatively low, this is because all it includes is the right to drive your car for the duration of your lease. On top of that, you have to add all the costs for insurance, maintenance and wear and tear.
- Don’t forget the residual value
Insurance and maintenance costs aren’t the only financial factor to consider, however. Oftentimes traditional lease agreements offer the option to purchase your car at the end of the lease. In order to do that, you’ll have to cover the residual value amount of your car, which, depending on the car category, can be quite a hefty sum.
- Your lease doesn’t adapt to financial changes in your life
Whether you’re experiencing a period of economic downturn in your business or simply don’t need to use your car as much as you thought: with a traditional lease there’s no way to accommodate for these factors. Even when your financial situation changes, the conditions of your lease agreement don’t.
The SIX(T) benefits of a company car subscription
For the longest time, traditional car leasing has been the go-to mobility solution for business owners. To this day, the opportunity to drive a brand-new car without the corresponding price tag is still a strong selling point. For good reason, too. However, in today’s world, few things are more important to businesses of any size than flexibility. Check out these SIX(T) benefits of a company car subscription and see for yourself:
1. Maximum flexibility
From seasonal downturns to a considerable growth period in your business: A car subscription adjusts with you, no need to worry. Change, upgrade, pause or cancel your business car monthly whenever and as often as you need to. Like to just switch it up from time to time? We get it. Who wouldn’t like to drive a fun convertible in the summer and a cosy yet representative SUV in the winter months? With a car subscription, you can!
2. Customizable subscription durations
Unlike traditional leasing, a car subscription doesn’t have any fixed-duration contracts. Instead, you get to decide how long you want to drive your company car. Don’t like your car? No problem. Easily change or upgrade to a different model that fits your needs even better. Not ready to return it just yet? We’re glad to hear it! Keep driving for as long as you want and simply pay the monthly fee, no dreaded residual value coming your way, we promise.
3. We couldn’t make it any easier, even if we tried
Whether you’re a one-person show or have a growing team of employees: a company car subscription is by far the easiest way to manage your business mobility, if we do say so ourselves. Here’s what you need to do: Browse our large fleet of brand-new business cars, pick your executive favourite or a model for your employees, decide which mileage package suits your needs the most, book it … and that’s it. Your new company car is yours as soon as possible.
4. Your whole company fleet in just one account
Managing a number of lease agreements with different dealerships sounds like a headache, doesn’t it? What would you say if you could manage your whole car pool with different models, mileage packages all through one single account? Sounds good? We thought so too, which is why that’s exactly what you get with a SIXT car subscription. Simply open up your account through our SIXT App or website and monitor, manage and change all your company’s subscriptions with a few clicks.
5. Less administrative overhead
Speaking of headache, here’s another super convenient benefit for you: With traditional leasing, the joy of finding and getting insurance or scheduling maintenance for your car is all yours. Doesn’t sound so joyful to you? Not to worry. Our car subscription covers not only your monthly fee but also all of that. We register the insurance for you, we manage it and in case of any claims we handle them, as well. Time for servicing and maintenance? We got it. All you need to do is drive and enjoy the ride. Literally.
6. Your international mobility solution with customer service around the clock
Are you or your employees frequently travelling internationally? How fun! Let’s make it an even better experience by ensuring neither you nor your team has to worry about getting from A to B in a foreign country. With the very same subscription account you’ve been using at home you can enjoy the same benefits and services abroad. Just book your ideal business car for your travel needs, pick it up from one of our many international SIXT stations and off you go. In case you run into any trouble our customer service is here to help, 24/7, worldwide.
Quiz: Which company car solution fits your business needs?
Now that you’ve heard a lot about the pros and cons of a company car subscription or company car leasing it’s time to figure out which solution is right for you. Because although we’re convinced of all the benefits of a company car subscription, it all comes down to one thing: Your individual needs and preferences. There’s no right or wrong answer here, which is why we want to help you make an informed decision. Before you decide, ask yourself the following questions to determine what is most important to you:
- Is your business still in the early stages?
- Has your business been around for a while?
- Do you experience seasonal fluctuations or intervals of significantly increased/decreased demand?
- Are you planning on hiring (several) new employees in the near future?
- Are you expecting to open new offices or branches in different locations soon?
- Do you have to travel internationally on a regular basis?
- Do you like the feeling of having your ‘own’ car?
- Do you like to drive different models from time to time?
- Is it important to you to drive a brand-new car?
- Do you like the idea of configuring the features and gadgets of your new car yourself?
- Do you like the option of buying your car after the end of your lease?
- Is it important to you to keep your monthly fee as low as possible?
- Do you prefer an all-inclusive pricing model that includes insurance, maintenance and wear and tear?
Summary: Company car subscription or company car leasing—Choose the one that’s just right for you
In today’s business world, you’ll encounter obstacles at every turn of the road. In order to tackle them when and where they arise, you need to be as flexible as possible. A company car subscription provides you with exactly that: The flexibility to keep, change, upgrade or cancel your business car whenever you need to without any fixed-term lease agreements.
This goes for your personal business car as well as your company car pool. Manage a whole fleet with a few clicks through our SIXT App or website. Manage, upgrade or switch all your company cars and enjoy the benefits of your account everywhere you go, at home or abroad.
But a company car subscription isn’t just about flexibility. It’s also about money. While a traditional lease usually comes with an affordable monthly fee, you always need to budget for additional costs for insurance, maintenance and repairs. With a company car subscription, you get an all-inclusive fee and full cost transparency. Sounds good? All you need to book your company car today and drive off tomorrow!