A lease is built around long-term commitment to one car, whereas a car subscription tends to be more flexible – both with length of contract, and with the vehicle you can use. “Lease” as a wider term covers a few different products in Australia:
A subscription is a completely different model. You can rely on one weekly rate for a car, plus most of its running costs. Terms are short, and you can typically return or swap cars with relative ease (the specifics will depend on your subscription provider and contract terms).
For a lease, commitments typically run for two to five years. If your circumstances change or you want to end the contract early, there are usually break fees – or you must pay the remaining balance.
When you start a lease, five years can seem like a reasonable amount of time. However, a lot can happen – you might get a new job, grow your family, move to a new city, work a FIFO roster, or just want to try a different or newer car.
With a subscription, you have short minimum terms that give you the freedom to change things up, keep going as is, or hand the car back with a reasonable notice period. This means when your life changes, you’re not locked into a long-term contract. Humans haven’t yet found a way to accurately predict the future; opting for a car subscription means you aren’t essentially betting on what your life will look like in the coming years.
Coverage depends on the product, so make sure you’re familiar with the terms before you sign. Some leases will only cover the car’s finance and depreciation over time, leaving you to pay insurance, rego, servicing and other essential costs separately.
Other contracts may bundle certain costs together, and novated leases will typically package running costs through salary.
Subscription payments (like our flexible car subscriptions) cover insurance, rego, servicing, tyres, and roadside assistance in one payment. Day-to-day, you’ll mainly cover fuel or charging costs, and additional driver charges if these apply – all under the same monthly payment.
That means one bill for everything important, simplifying your payments so they are easy to manage.
For a lease, you can expect a credit check and an income and affordability assessment, usually requiring bank statements, to prove you are able to commit to the long-term financial obligation of a lease. This can be complicated for people on temporary visas or self-employed people. And sometimes, you just don’t want to take on finance to access a car.
For subscriptions, it can vary provider to provider. Switchcars doesn’t require credit checks to get started with a subscription; it’s a service you pay for, so there’s no loan involved. Standard eligibility criteria still applies.
Perth is often described as one of the longest cities in the world. From north to south, it spans roughly 150km, and from east to west the metropolitan area covers approximately 50km. Where you live and where you work, play or where your family are based may be completely different and quite far apart – and then there are weekend trips and holidays away to consider.
A lease will typically set an annual kilometre cap at the start of the contract, and you will settle any charges for going over this allowance when you return the car at the end.
A subscription also has a kilometre allowance, but you’re able to change your plan as you go if you realise you need a larger allowance to suit your lifestyle. On the other hand, you can also downsize if needed – with shorter terms, you have more opportunity to switch up your options.
Another thing you might find after driving around Perth’s far-flung reaches and beyond… the car you first picked out may not be the right fit. Maybe it’s too small for a growing family, or maybe you’re sick of petrol costs and want to switch to a hybrid or an EV to reduce your fuel budget. With a lease, the contract is specific to the car you choose at the start. With a subscription, you can switch cars if your needs change… or if you just want more leg room on long drives.
On paper, a lease often has the lower headline rate, especially over a long, settled term. That rate doesn’t always tell the full story. Many leases leave insurance, rego, servicing and tyres to you, and some end with a balloon payment. Break fees can also apply if your plans change early.
A subscription bundles most running costs into one weekly payment, so what you see is close to what you pay. If you value flexibility and predictable costs, a subscription often works out better value. It’s all about what works best for you.
Perth drivers can get started right away with a flexible car subscription from Switchcars. We’re a local car subscription provider with a wide range of new and near-new cars from popular brands, suited for Australian roads. Our car subscriptions start from just two months; it’s easy to access the car you need now and switch things up if plans change later.
Subscribe to drive today and get easy access to a car of your choice for one simple monthly payment – it’s the flexible alternative to car ownership (and to leasing) you’ve been waiting for. Ready to get moving? Why not contact our friendly team today.
Whether you’re here for a season or a year, Switchcars makes mobility simple, flexible, and stress-free.
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FLEXIBLE DRIVING IN PERTH
Find a vehicle and minimum term that fit your plans.
Included:
Insurance
Registration
Scheduled servicing
Rodside assistance
Return notice: 21 Days.
In this article:
Minimum terms
When a subscription suits
Planning your return
Keeping the car longer
What’s included
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