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Having access to a car is a necessity for most people, but the rise of car sharing and car subscription services means you now have legitimate alternatives to traditional car ownership.
Each option comes with a number of benefits and drawbacks, and may be more or less suitable depending on your needs and lifestyle. While car ownership may suit those who need constant and long-term access to a car, car sharing and car subscription models may suit those wanting a bit more flexibility in how they use a car.
Find out how each model works, how they differ and which one may be right for you below.
Car ownership involves you purchasing a vehicle outright, either using your own savings or by getting a car loan to cover the purchase cost of the car. The car is considered your personal asset and you're free to use it as you wish. You can also sell the car at any time, as long as you've paid off your car loan (if you used the vehicle as security against the loan).
Considering whether to buy or lease a car? Compare them now
Car sharing is a form of car rental that lets customers use a vehicle on a short-term basis, whether that's for a couple of hours, days or weeks. The cars are either owned by companies such as GoGet – which charges customers a monthly or yearly membership fee as well as an hourly or daily rate every time they use a vehicle – or individual owners who want to rent out their vehicles when they don't need them through companies such as Car Next Door and DriveMyCar. In this case, users only pay for the period of time they need the car.
A car subscription service is similar to car sharing, but gives you ongoing access to a vehicle in return for a regular payment. You can generally choose from a range of brands and vehicle types, and may be able to switch vehicles as you wish. Most car subscription services have no fixed contracts and you can cancel your subscription when you want.
You will generally make a single weekly or monthly payment, which covers all registration, insurance and maintenance. There are a number of car subscription services in Australia, including Carly and Carbar.
It can be hard to calculate the exact cost of each option, as this will be determined by factors such as the type and age of car, how much you use it and how long you need it for. However, there are a number of general costs you will need to keep in mind when considering each of the options outlined above.
You should always try and calculate the specific costs of each model of car access to find the one that makes the most financial sense for your situation. If you're considering car sharing or car subscription, you should contact the provider directly to see the likely costs. If you're considering car ownership, you can use our car loan calculator to help work out the potential cost of your car finance.
You should find the statement below that best describes your situation to work out which model may best suit your needs:
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