'Disruption' is a trendy word these days. Almost every other week, we'll hear about a new company or a new startup idea that promises to 'disrupt' conventional ways of doing business. No industry is exempt from these disruptive changes, especially the automotive industry.

The automotive industry has gone through its own disruptions quite a few times already. For instance, ridesharing companies have disrupted how people get around. At a moment's notice, we can use our smartphones to call for a car to take us anywhere we like. This removes the need to call and wait for a taxi by the side of the road. For many, having access to this service eliminates the need to own a vehicle entirely!

Right now, we can see over the horizon that yet another disruption is already headed straight for us. This particular one is aimed at disrupting our understanding of car ownership altogether.

This new disruption is known as the car subscription programme.

What is a car subscription programme?

What do you understand about the word 'subscription'? The common understanding of the term involves signing up for a programme and paying a regular fee. In exchange, you get something that's continuously being renewed every week, month, or according to some agreed-upon schedule. Usually, we think of subscriptions in terms of TV channels, entertainment streaming services, or even magazines. 

Now imagine if you could do the same thing for cars!

When you sign up for a car subscription programme, you'll pay a monthly fee in exchange for access to car models in its fleet. Better yet, you could switch to a different car model anytime you want (subject to the programme's terms, of course)! 

Typically, the cost you pay will also cover things like insurance, maintenance, and any roadside assistance services they may provide. Of course, the perks offered could differ between providers as they strive to stay competitive against one another.

In 2020, these car subscription programs have already started to appear in Malaysia. These are likely to evolve quickly, so the best way to find out which ones are in your area is to do a quick Google search!

Who is offering these subscriptions?

When it comes to car subscription programmes, things are already quite competitive. The disruption to car ownership hasn't quite hit the mainstream yet and is still in a trial phase, sort of. 

Despite being in its infancy, the providers are already quite diverse. Currently, they consist of both startups like GoCar and big car manufacturers like Renault as well!

Looking at this from a layman perspective, a safe assumption to make would be that other companies are still waiting to see what happens. Should existing car subscription programs prove to be successful and lucrative, there's no doubt that many more providers will jump in as well. If or when that happens, users will have a much more comprehensive range of vehicles to choose from, and providers will offer more competitive perks!

Just like traditional car ownership, the car subscription model will definitely have its own pros and cons.

Let's explore the good and the bad of car subscription programmes to get a more balanced understanding of the concept.

What are the pros of car subscriptions?

There are plenty of benefits to enjoy from signing up for a car subscription. Firstly, car subscriptions typically do not come with a long-term contract. So far, some providers do offer a minimum subscription of 3 months, but that's still a very short-term commitment compared to purchasing a brand new car.

Speaking of buying a brand new car, when it comes to car subscription, a lot of the benefits are found in the things that you DON'T have to pay for. Think about it: with a car subscription, you won't have to worry about making a downpayment before taking the car out on the road. Better yet, you won't have to worry about committing yourself to monthly car loan payments that would typically last up to 9 years.

All you have to do is pay the subscription and let yourself enjoy that 'new car feel' as much as you want. If you feel like it, you could even change to a different model anytime you want! There’s no need to worry about maintenance or having to buy new car parts like you would if you owned the car. Instead, the solution to any car problem is just a call away!

What are the cons of car subscriptions?

The benefits of signing up for a car subscription are clear. The downsides, though, are a lot less obvious.

First and foremost, the prices for car subscriptions are not low. You'll pay high fees, and you'll do so again and again for as many months as you're subscribed. No matter how many payments you make or how long you’re subscribed, you'll still walk away empty-handed. Unlike making monthly car loan payments, at the end of it all, you don't get to keep the car. On top of that, if you're looking for access to better car models you can bet that your subscription fees will be higher as well.

Car subscription providers also face their own limitations. When you sign up for a car subscription, you and all the other users will be accessing the same fleet of cars. There isn't an unlimited number of cars to go around which means that you'll only get to drive the vehicle you want if, and only if, it is available.

And what about limitations on how much you can drive? Some car subscription plans offer unlimited mileage, but others will put a limit on how much you can actually drive. This could be an unpleasant reminder to users that ultimately, the car they're using is subject to someone else's rules.

Finally, one limitation of car subscriptions that drivers might not enjoy is that fact that you're not allowed to modify or personalize the car in any way. This might not be a big deal for some people. Still, for many people, being completely unable to customize the vehicle they drive every day could take most of the fun out of driving. 

After all, many drivers prefer having a vehicle that represents their individual style. When the car you drive is one that you technically share with everyone else, it's hard to develop an attachment to the vehicle. It’s impossible to make that car fit your personal style.

With all the pros and cons considered, do you think that car subscription programmes are a good option for you?