Auto Abo / Car Subscription

What is a car subscription, and how is it different from leasing?

Car subscriptions, also called Auto-Abo, are a relatively young alternative of financing or getting a car.

It basically means the customer rents the car for a longer period of time, just like they would rent a car while on holiday abroad. This means that all costs are included in the monthly payment, from insurance to tyres to taxes.

At the end of a subscription, there is often no way of buying the car - it has to be returned to the subscription company.

How does a car subscription differ from leasing a car?

  • After leasing contracts, the customer may make an offer to purchase the vehicle for the residual value. Subscriptions do not offer this possibility.
  • Subscriptions include all necessary services and fees in one monthly price. However, there is no way of customising the inclusions - it is all or nothing. With Gowago’s All-in-one Leasing packages, customers can choose which services to include in the monthly invoice.
  • Subscriptions are rather flexible in terms of duration. Car’s can be rented for as little as one month. The short-term focus and the fixed all-inclusive nature of subscriptions also makes the monthly payments on average more expensive than a standard leasing contract.
  • Subscriptions offer flexibility in changing the car, making it an attractive offer for customers looking for short-term mobility solutions.
  • Leasing offers the possibility of a down payment to reduce monthly costs. With subscriptions, down payments are not possible.
  • With Leasing, there is generally a far wider selection of cars to choose from.

The choice between leasing and a car subscription depends on individual needs and preferences. Leasing offers a path to ownership and more vehicle choices, while subscriptions provide flexibility and simplicity with all-inclusive monthly payments.