In brief
A car subscription provides a vehicle for a monthly fee and a short term. Insurance, vehicle tax, maintenance and tyres are usually included; fuel or charging electricity is not.
How does it differ from leasing and rental?
The differences lie in term and scope of service. Leasing typically ties a company in for three to five years, long-term rental for months to a few years, and a subscription usually for one to twelve months with a short notice period. The included services are much like full-service leasing, but the monthly price is considerably higher.
When does it make sense for a fleet?
When demand is uncertain. A subscription can bridge fixed-term projects, new sites, parental leave cover or long delivery times without a commitment lasting several years. Another use is to test electric vehicles before changing the fleet.
Where are the limits?
Price and availability. Over a longer period, a subscription costs considerably more than leasing, and the choice of vehicles depends on the provider's stock rather than the company's specifications.
Also check the included mileage, which is often tight, and who is registered as the vehicle keeper. If the provider remains the keeper, that does not remove the company's occupational safety duties towards its drivers.
Further reading
Fleet Management Without Excel Spreadsheets
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