How Much is a Car Subscription
Like other types of subscription services, a car subscription provides consumers with a vehicle in exchange for a flat monthly rate. Depending on the provider, type of vehicle, terms and add ons, a car subscription service can cost anywhere from $400 to $3,500 per month. If you’re looking for a flexible, easy way to have access to a car when you need it, a subscription might be the perfect solution.
How Much is a Car Subscription?
Car subscription services are available from auto makers, auto rental companies and third parties, like SimpleCar. Because there are so many different companies currently offering subscriptions, the average price for a vehicle subscription service is a big range, anywhere from $400 to $3,500 charged as a flat monthly rate. The higher end of the spectrum is for luxury cars like Porsche. If you don’t need a luxury car, don’t worry, there are plenty of affordable options!
Aside from luxury makes and models, some car subscription services also offer additional a la carte services and tiered plans. While these pricing structures are a little more complex, they do give you more options and the ability to pick and choose so you can subscribe to the plan that works best for you. Other companies take a more simplified approach and may only offer one type of car with a simple, no nonsense plan.
Remember that your monthly car subscription fee will likely include registration, maintenance, roadside assistance, insurance, etc bundled into a single flat rate. The cost of the plan itself will depend on the type of vehicle, the length of the subscription, where you live, your mileage and if you want additional services. Most companies require an activation, deposit or some sort of one time fee and you have the freedom to stop, start and cancel your service as needed.
Is a Car Subscription Tax Deductible?
Vehicle usage continues to change and evolve as individuals and businesses seek new solutions that provide flexibility and potential cost savings. Car subscriptions are a newer solution and an alternative to a car loan, lease or rental. If you use a car for work or business purposes, you may be able to claim a tax deduction.
If you’ve used a car for business purposes in the past, you’ll understand the importance of keeping accurate mileage and trip documentation and that not all trips or parts of your trip are eligible to be claimed. If you decide to use a car subscription service for business, you would follow the same documentation procedures and would likely be able to claim a portion of the subscription fee.
We recommend that you consult with your accountant or financial advisor for their professional advice on whether or not you can claim a car subscription service and the exact documentation needed.
