Car Subscription vs Buying — Which Is Cheaper for Families?
For families, the question of whether to buy or subscribe to a car has become a hot topic. Traditionally, buying outright (or using finance) was the default option. But with car prices climbing, finance agreements stretching family budgets, and repair bills becoming more unpredictable, many households are reconsidering.
That’s where car subscriptions come in — offering a safe, reliable vehicle for one fixed monthly fee that covers almost everything. But which option really works out cheaper? Let’s break it down.
Buying a Car – The Traditional Route
Ownership brings some benefits: the car is yours, you can sell it, and you can customise it. But for most families, the financial downsides are significant.
Depreciation: A typical family car loses 50–60% of its value in five years. That’s thousands gone the moment you drive it off the forecourt.
Insurance premiums: For young drivers in the household, this can easily exceed £2,500 a year.
Servicing & MOT: Around £300–£600 annually, rising as the car gets older.
Tyres & repairs: Budget £500–£1,000 across two years for wear and tear.
Breakdown cover & tax: Another £250–£400 a year combined.
Even if you buy “cheap” second-hand, the costs rarely stop at the purchase price. Hidden faults or a failed MOT can suddenly make a bargain car very expensive.
Subscribing to a Car – The Modern Alternative
Car subscriptions swap the complexity of ownership for simplicity: one flat monthly fee that usually includes:
✅ The car itself
✅ Insurance
✅ Servicing & MOT
✅ Breakdown cover
✅ Road tax
✅ Warranty protection
For families, this model offers predictability. Instead of saving for big repair bills or worrying about depreciation, you know exactly what your transport costs will be each month.
Another advantage is flexibility: as your needs change, you can upgrade or downsize without the hassle of selling or negotiating a trade-in.
Cost Comparison: Subscription vs Buying
Owning a car outright gives you control — you can sell it, keep it, or pass it down to another family member. But financially, the picture is more complicated.
Here’s what a typical small family car costing £10,000 looks like over two years:
Car purchase: £10,000 (+ interest if financed)
Depreciation: ~£4,000 loss after 2 years
Insurance: ~£5,000 (2 years for a young driver in the household)
Servicing & MOT: ~£600
Repairs & tyres: ~£800
Breakdown cover & tax: ~£600
👉 Total (2 years): ~£17,000
And that’s before factoring in:
Interest on finance agreements
Early repayment charges
The stress of haggling to sell later
The risk of hidden issues or MOT failures
Subscription – The Modern Alternative
With a subscription model, you pay a fixed monthly fee and avoid the uncertainty of ownership.
Monthly payment: £500 × 24 = £12,000
Includes: insurance, warranty, servicing, MOT, breakdown cover, and tax
Depreciation risk: none
Upfront deposit: none
👉 Total (2 years): £12,000
Why Subscriptions Appeal to Families
It’s not just about the money — it’s about peace of mind. Families choosing subscription avoid:
The stress of finding a large upfront deposit
The shock of unexpected repair bills
The hassle of haggling with dealers or private buyers
The financial hit of depreciation
Instead, you get one predictable monthly payment, covering everything. For households already juggling school costs, rising bills, and young drivers entering the road, predictability can be worth more than squeezing every last pound out of ownership.
The Bottom Line
Car ownership may still feel traditional, but in 2025 the numbers tell a different story. With insurance, depreciation, and repairs making ownership far more expensive than it first appears, subscriptions are emerging as a smarter, family-friendly alternative.
For many households, the ability to access a safe, reliable car with no deposit, no hidden costs, and no financial surprises makes subscriptions not just convenient — but genuinely cheaper.