Buying a car is an expensive investment. Not only is there the purchase price to worry about, but you also need to cover the cost of registration, insurance and maintenance.
So if you’re only an occasional driver, or you only need a car for a short-term period, the long-term commitment and cost of car ownership might seem like an unnecessary hassle. That’s where a car subscription program comes in.
A car subscription program is an alternative to buying or leasing a car. As the name suggests, it allows you to pay a fee to use a late-model vehicle for a specified time. The subscription fee is usually paid monthly, and you often have the option to cancel at any time.
The fee covers the use of the vehicle and also includes other costs such as the following:
However, it doesn’t include expenses such as gas or charging an electric vehicle.
Car subscription programs are offered by third-party providers as well as some car manufacturers. It’s easy to sign up for a subscription online or via the provider’s mobile app. You can choose from sedans and SUVs as well as gas, hybrid and electric vehicles. If your driving needs change and you need to switch cars, that’s usually an option too.
It depends on your personal circumstances. A car subscription in Canada could be a good idea in the following scenarios:
But there are other scenarios where a car subscription program simply doesn’t make sense. Situations where a car subscription may not be worth your while include the following:
| Response | |
|---|---|
| In-person at a new car dealership | 37.41% |
| In-person at a used car dealership | 20.53% |
| No plans to buy a vehicle | 18.26% |
| Online general marketplace (Facebook Marketplace, Kijiji, Craigslist) | 7.8% |
| From friend/family member | 4.94% |
| Online automotive marketplace (ie: AutoTrader, CarGurus) | 4.74% |
| Online through a dealership (ie: Canada Drives, Clutch) | 4.74% |
| Auction | 0.79% |
| Other | 0.3% |
| I don't know | 0.1% |
| I'll probably fund a vehicle online but buy it in person. | 0.1% |
| Not sure | 0.1% |
| Private sale | 0.1% |
| used online | 0.1% |
Founded in 2020, Roam is a Toronto-based car subscription service that provides access to over 40 models from more than 15 car manufacturers. Plans start from one month in length, and you can pick up the vehicle yourself or pay to have it delivered to your door.
Steer EV is a car subscription service that specializes in electric vehicles. It offers access to over 300 vehicles and has locations in Canada and the USA.
ShiftRide is a car subscription marketplace where car owners and dealers can list their vehicles for other users to lease. As a subscriber, you can browse the available vehicles and find a subscription that meets your needs.
Porsche Drive is a subscription program offered by Porsche Canada. You can choose from a monthly or three-month subscription and choose to drive either one model or the entire Porsche range. Porsche Drive also offers daily or weekly rentals through the Porsche Drive – Rental program.
In the post-pandemic world, Canadians may be starting to think twice about whether they need to own a car. New vehicle sales in Canada in 2022 reached their lowest level since 2009, according to DesRosiers Automotive Consultants Inc.
A total of 1.49 million new vehicles were sold in 2022, a 9.1% decline from 2021. However, the COVID-19 fallout wasn’t the only factor behind this drop in sales, with supply chain issues and uncertain economic conditions also having an impact.
COVID-induced supply shortages have also resulted in rising car prices for new and used vehicles. In December 2022, Canadian Black Book reported that the average listing price for used vehicles was more than $36,000 – a significant investment for most people and a good reason why you might want to consider a car subscription if you don’t need a long-term vehicle.
There are several factors that can affect the cost of car subscriptions in Canada, such as the following:
As a general guide, expect prices to start at around $900 a month for an entry-level or older-model vehicle. However, choose a premium model, and you could pay $2,000 or more per month.
Eligibility requirements vary between car subscription services. However, as a general rule, you will need to meet the following criteria:
Once you’ve found the best car subscription company for your needs, here’s what you need to do to sign up.
Start by browsing cars in the subscription company’s inventory. Use filters to narrow down to specific manufacturers, body styles, fuel types and seating capacities.
When you’ve found the car you want, make sure you add any extras you need to your subscription. For example, you might want more monthly mileage or to add a second driver to your plan.
Now it’s time to organize a time to collect your car and have it delivered. Before you pay, make sure you review the total cost of your monthly subscription – plus any extra fees and charges – so you know exactly what to expect.
You may be able to collect the vehicle from the company’s lot, but in other cases, the company will deliver it to your door. However, keep in mind that a delivery fee may apply. Make sure you’re aware of any requirements you must satisfy before returning the vehicle, such as filling up the gas tank.
The exact documentation required depends on the car subscription service you choose. However, you may be asked to provide the following:
How does a car subscription differ from car sharing services? And how do both of those options stack up against the more traditional approach of buying or leasing a car? Check out the table below for help working out which option is right for you.
| Car subscription | Car sharing | Car leasing | Car ownership | |
|---|---|---|---|---|
| How often you drive | Often, but you only need a car for a limited time (e.g. a few months) | Occasionally, such as for a day trip or a weekend | Frequently | Frequently |
| How long you need a car for | Ongoing but short term (typically 1–12 months) | A few hours to a few days | Long term | Long term |
| Can you change vehicles? | Yes, but there may be limits on the number of vehicle swaps per month | Yes, you can choose the vehicle you want as needed | Yes, at the end of the lease | No |
| Can you make vehicle modifications? | No | No | No | Yes |
| Affordability |
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Car subscriptions in Canada are a viable alternative to buying or leasing a vehicle – but only in specific circumstances. If you need a car you can drive regularly, but you don’t want or need the long-term commitment or high cost of car ownership, compare car subscription services to find the right one for your needs.
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