Buy a car or choose flexible mobility: what is changing in Portugal?

Buying a car is still the preferred option for many people in Portugal, but it is no longer the only choice. Short- and long-term car rental, car subscription and renting now make it possible to choose a vehicle based on how long you need it, your budget and the level of commitment you are looking for.

This shift is particularly noticeable among younger generations, where car ownership is lower and other forms of mobility are gaining ground. Instead of taking on the costs and responsibilities associated with buying a car, many consumers are looking for more flexible solutions that adapt to their needs at different stages.

In this article, you will discover what is changing in the way people in Portugal relate to car ownership and when traditional car rental, long-term rental, car subscription or renting may make more sense.

Why is the way people in Portugal think about car ownership changing?

A recent European mobility study provides some useful insight into how attitudes towards car ownership are changing in Portugal, particularly among younger generations:

• 27% of people aged 18 to 40 in Portugal who do not own a car say they have no plans to buy one;
• Only 49% of people aged 18 to 40 own a car, compared with 67% of those aged 41 to 75;
• Among 18- to 29-year-olds, car ownership drops to just 36%;
• 21% of people without a car cite the purchase price and ongoing maintenance costs as the main barriers to ownership;
• 55% of people aged 18 to 40 in Portugal used ride-hailing apps in the past year;
• 25% used shared scooters or bikes over the same period.

These figures suggest that people in Portugal are becoming less dependent on owning a car and more open to different ways of getting around.

Against this backdrop, options such as car rental, car subscription and renting are becoming increasingly relevant, particularly for those who need access to a vehicle without taking on the costs and long-term commitment that come with buying one.

Source: Study on mobility and car rental in Portugal

What are the alternatives to buying a car?

Today, anyone who needs a car without buying one has four main options: short-term rental, long-term rental, car subscription and renting.

The main differences lie in how long you need the vehicle, the level of contractual commitment involved and the flexibility to change or end the arrangement.

Car rental: the simplest option for a few days or weeks

For trips, holidays, weekends, business travel or whenever you need a vehicle for a limited period, car rental remains the simplest and most immediate solution. You just need to choose the vehicle category, select the pick-up and return dates, and book online.

This option is ideal if you want access to a car without taking on any commitment beyond the rental period. At the end of the rental, you simply return the vehicle, without having to worry about maintenance, insurance or depreciation associated with owning a car.

Long-term car rental: mobility for months, without buying a car

If you need a car for a few weeks or months but do not want to commit to a multi-year contract, long-term car rental can be a practical alternative to buying. Maintenance is included in the monthly fee, which helps you avoid some of the costs and responsibilities that come with owning a car.

This option can make sense, for example, for:

• Students who need a car for a semester or internship period;
• Families waiting for a new car to be delivered;
• Professionals who need a car for a few months for a project or temporary assignment;
• Companies that need to increase their fleet for a limited period;
• Seasonal businesses that adjust the number of vehicles according to demand.

From Drivalia’s teams’ experience, one of the most common situations is when a customer realises that their need is only temporary and that buying a car only to sell it again a few months later may not be the most suitable option:

“We often speak to people who are close to buying a car, only to realise they will only need it for six months or a year. In those cases, long-term rental avoids the need to buy a vehicle and then sell it again shortly afterwards.”

Car subscription: mobility with a fixed monthly fee

A car subscription gives you access to a vehicle for a fixed monthly fee. At Drivalia, this includes costs such as insurance, maintenance, tyres and taxes. There is a minimum commitment period, after which you can cancel in line with the terms and conditions in force at the time.

This option may suit you if you want to:

• Have access to a car for several months without buying one;
• Bring several costs together into a single monthly payment;
• Keep greater flexibility if your needs change;
• Avoid committing to a multi-year contract.

At the time of publication, Drivalia’s car subscription includes a set monthly mileage allowance, with the option to add extra kilometres. As these conditions may change, always check the applicable mileage limits and pricing when you subscribe.

Drivalia recommends: “A car subscription makes sense for anyone who wants access to a car without being tied to it. If your needs change, you can adjust, pause or cancel the service without the complications that usually come with owning a car.”

Renting: when does a longer-term commitment make sense?

Renting, also known as operational vehicle leasing, is designed for medium- to long-term mobility needs. It usually involves a contract with a fixed duration and is better suited to those who expect to use the vehicle for several years and have relatively stable mobility requirements.

It can be a suitable option for private customers, but it is particularly relevant for businesses with predictable fleet needs that want to bring several vehicle-related costs together into a single solution.

Renting or long-term car rental for businesses?

The main difference lies in the contract length and the level of flexibility.

If a company knows it will need a certain number of vehicles for several years, renting may be the most suitable option. Long-term car rental, on the other hand, offers greater flexibility to increase or reduce the fleet over time, which can be useful for seasonal businesses, temporary projects or periods of growth.

In Drivalia’s experience, the comparison should not be based on the monthly cost alone:

“The most important thing is to understand whether the company’s fleet needs are likely to remain stable over the next few years or change depending on the season, projects or level of activity.”

Is renting a car cheaper than buying one?

It depends on how long you need the vehicle and how you plan to use it. Buying may make more sense if you intend to keep the car for several years. Renting, on the other hand, can be a better option when the need is temporary, as it avoids the upfront investment, vehicle depreciation and some of the costs associated with ownership.

When comparing the two options, you should also consider how long you need the car, as well as maintenance, insurance and tax costs, and the level of flexibility you require.

Find the right mobility solution for you with Drivalia

Choosing between buying, renting, subscribing or opting for renting mainly comes down to three factors: how long you need the car, whether your needs may change, and the level of commitment you are prepared to take on.

At Drivalia, you can find mobility solutions for different situations and needs, from short-term car rental to long-term rental, car subscription and solutions for businesses.

Before making a decision, consider how long you will need the vehicle, the costs involved and the level of flexibility you actually require.

Rather than looking for one definitive answer, the key is to choose the solution that makes sense for you today. After all, needs change, projects evolve and mobility should be able to adapt with them.