Car Rental by Subscription or renting: Discover Which Is the Most Flexible Solution
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Need a car but investing in the purchase of a vehicle is out of the question? Want a commitment-free solution for 12 months, free from annual taxes, fees, insurance, inspections, maintenance, and more surprises?
Car rental by subscription may be the answer you're looking for to have the mobility you need without additional charges. The key word for this service is flexibility, as you can rent for 1 month up to 12 months, cancel or change the terms at any time without penalties.
This is quite different from leasing, which requires the complete fulfillment of the contract, typically lasting a minimum of 12 months.
To understand how the car subscription service works and to learn about its main advantages, we have gathered all the information you need in this article. After reading, you will know:
- What is the difference between car rental by subscription and renting?
- Who is the car subscription service for?
- What makes car rental by subscription more flexible?
- How does car rental by subscription work?
What is the difference between car rental by subscription and renting?
Car rental by subscription is a monthly subscription service for car payments that can be canceled at any time without charges or fines.
On the other hand, renting, also known as operational vehicle leasing (AOV), is a long-term solution with a minimum term of 12 months.
Simply put, when you choose renting, you are renting the vehicle from a renting company for an extended period (usually between 12 to 72 months) and paying a monthly rent for the vehicle's use.
Despite its popularity, renting may not be the right option if you are looking for a flexible and simple solution without the obligation of a minimum 1-year contract.
Renting a car by subscription is the ideal and more economical solution to meet the need for a temporary vehicle without the need to buy one.
In summary, the main differences between car subscription and renting are:
- Monthly subscription service with a Rent a Car company
- Short duration, cancel anytime (1 to 12 months)
- Flexibility very high
- Insurance, Road Tax, Maintenance, and Tires included in the contract
- Purchase Option not available
- Long-term contract with a renting company
- Minimum of 12 months up to 72 months
- Moderate flexibility (changes subject to penalties)
- Insurance, Road Tax, Maintenance, and Tires included in the contract
- Purchase Option Available at the end of the contract
Who is the car subscription service for?
Renting a car by subscription brings practical benefits for various mobility situations and challenges. Here are some examples of those who can benefit from the service:
- Freelancers with variable income who fear committing to a loan for car purchase and potential difficulties in meeting their obligations.
- Individuals who frequently travel for leisure to other cities or countries for long periods, wanting to explore the area with total freedom without depending on public transportation.
- Professionals assigned to temporary projects away from their usual place of work, without their own vehicle and without accessible transportation.
- Companies that need vehicles for their employees but want to avoid the costs of fleet purchase (taxes and maintenance).
- Individuals undergoing lengthy relocations from one city to another can save with the car subscription service for a cargo vehicle.
- Entrepreneurs starting their business and needing distribution vans but finding fleet purchase still too costly for this initial phase.
- matrícula, categoria, cilindrada, combustível e emissões de CO2. Como o carro é alugado, cabe à empresa rent-a-car suportar esse gasto.
What makes car rental by subscription more flexible?
As seen, car rental by subscription is a service that benefits both individuals and companies, providing a tailored solution for each client. Here are the reasons.
1. Greater freedom for customers
Car rental by subscription is a simple and effective solution for those who want to avoid the commitment and costs associated with buying a car. Opting for car subscription provides total freedom to manage the car rental according to specific needs.
Unlike a leasing contract, you can alter or terminate the rental, as well as swap vehicles without penalties. This service offers worry-free flexibility.
2. Tax exemptions and deductions
Whether you are an individual or a business client, car rental by subscription comes with some tax advantages, avoiding costs associated with car purchase such as registration fees and taxes.
- Exemption from the single circulation tax: an annual fee charged by the state to all vehicles with an active license plate, whether they are in use or not. The amount is calculated based on the year of registration, category, engine displacement, fuel type, and CO2 emissions. As the car is rented, it is the car rental company's responsibility to cover this expense.
- Possibility to include the rental in company expenses: this also applies to sole proprietors. For example, you can deduct the VAT (value-added tax) from subscription rental expenses and receive your refund.
3. Maintenance and technical assistance included
Car subscription service includes expenses for vehicle maintenance, including inspections, periodic inspections, and tire changes. The only monthly expense you have is the fixed subscription fee.
4. Cost control and budget management
Considering the aforementioned advantages, the monthly payment amount is always the same during the rental. This way, you can manage your family or business budget according to your fixed monthly expenses without surprises related to:
- Insurance payments;
- Unexpected repairs;
- Tax obligations (taxes and fees);
- Costs of mandatory periodic inspections.
5. Opportunity to try out new vehicles
With a subscription rental, you can stay up-to-date with new models and the latest technological innovations in the automotive world.
Changing cars is simple and without additional fees; you only adjust the subscription fee according to the chosen vehicle model.
Take advantage of car subscription to drive the latest electric vehicles from well-known brands like Tesla, allowing you to compare performance and find out how much you can save with this more sustainable and environmentally friendly energy.
How does car rental by subscription work?
At Drivalia, car subscription is simple and quick. It operates through Drivalia CarCloud, an exclusive online service that can be summarized in 3 steps:
1st step: Access the car subscription option on our website and choose the car that meets your needs.
2nd step: Fill out the form with personal information and make the payment for the subscription service.
3rd step: Wait for contact from one of our specialists to confirm your details and those of the chosen vehicle. Then, choose the day/time to pick up your subscription car at one of our Mobility Stores in Continental Portugal.
What you need to know about Drivalia CarCloud car subscription?
Now that you know how it works, let's clarify some frequently asked questions from customers.
What is included in the Drivalia CarCloud car subscription value?
The monthly value includes 1500 km/month, insurance, maintenance and damage coverage, tire change, taxes, and pickup/delivery at one of our car mobility stores. You only need to refuel the car; the rest is on us.
Are there benefits to Drivalia car subscription for electric vehicles?
Yes. By subscribing to a car and choosing an electric vehicle, recharging is free at Drivalia stations available at some of our Mobility Stores.
How do I change the car?
Just contact one of our professionals to indicate which car you want and confirm the availability of our fleet. Then, schedule the day and location to return the previous car and receive the new one. Finally, the subscription fee is updated.
What is the minimum duration of the car subscription?
The duration can vary from 1 to 12 months, but payments are made month by month. At any time, you can change, suspend, or cancel the subscription without penalties.
Why choose Drivalia for car subscription rental?
At Drivalia, we believe that mobility is synonymous with freedom, being where and when it's needed, without complications.
We pay attention to what people and companies are looking for in a car rental service, so we offer flexible solutions that adapt to the needs of each client.
Car subscription rental reflects our idea of efficiency in mobility:
- Simple - Online subscription and vehicle pickup at one of our stores in Continental Portugal.
- Flexible - The rental duration can be adjusted whenever necessary, payments are monthly, and you can also change cars.
- Penalty-free - No fees for subscription changes or cancellations.
- Zero charges - You only pay a fixed monthly fee.
Choosing Drivalia is an investment in over 30 years of experience in the market, the high quality of our services, and the diversity of our fleet, which we always keep updated to make your trips as comfortable and safe as possible.
Talk to us and count on our personalized support to choose the best automotive mobility solution for you.