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Car subscription vs owning
Put your subscription fee, price, resale, insurance, maintenance and horizon in: $500 a month beats owning by $1,900 over 36 months.
★ COMPARISONS · CAR · SUBSCRIPTION VS OWNING
Car Subscription vs Owning: 36-Month Cost Comparison
On the defaults — a $500-a-month subscription against owning a $28,000 car resold for $15,000 after 36 months, with $1,500 a year of insurance and $800 a year of maintenance — subscribing costs $18,000 and owning costs $19,900, so subscribing saves $1,900 over the 36 months. This is a SUBSCRIPTION comparison, not a lease: no down payment, no mileage penalty schedule, no end-of-term buyout, just a flat monthly fee against purchase, resale, insurance and maintenance — the buy-vs-lease-car page is the LEASE version, with a down payment and a 3-year term; the car-lease-vs-buy page is the LEASE-CALCULATOR version, with a monthly lease payment; and the hybrid-vs-electric-car page is the FUEL version — two cars owned, compared on running costs.
What does $1,900 of saving mean?
It means that over 36 months the subscriber comes out $1,900.00 ahead: the subscriber pays $500.00 a month for 36 months and is $18,000.00 out of pocket with no car to sell, while the owner pays $28,000.00, sells the car for $15,000.00, and pays $1,500.00 a year of insurance plus $800.00 a year of maintenance for three years — $13,000.00 of depreciation plus $6,900.00 of running costs, or $19,900.00 in total. Per month that is $500.00 for subscribing against $552.78 effective for owning. The part people get wrong is comparing the $500.00 subscription fee against the $28,000.00 sticker price: the honest comparison is total against total, and on those numbers subscribing wins by $1,900.00. But the verdict is close enough that the resale value decides it — at a $16,900.00 resale the two options tie exactly.
Three things to check before you trust the number
Is the $15,000.00 resale realistic? Resale is the whole verdict. A car that holds value well makes owning cheap; a car that depreciates fast makes the subscription look good, and the $20,000.00-resale branch shows owning winning by $3,100.00 when resale is strong. Price your exact model, age and mileage, not a headline average.
What does the subscription fee actually include? This model treats the fee as all-in and puts insurance and maintenance on the owning side only. If a subscription excludes insurance, or charges extra for mileage over a cap, the subscription side is understated — read the subscription terms before treating $500.00 a month as the full price.
How long will you really keep it? The horizon reverse shows the time effect: at $500.00 a month, subscribing stays cheaper up to 42 months, when the subscription total is $21,000.00 against $21,050.00 for owning, and in month 43 the subscription total reaches $21,500.00 against $21,241.67 for owning — owning pulls ahead. If you swap cars every couple of years, subscribe; if you keep a car for five years or more, owning usually wins.
Worked example
On the defaults: $500.00 a month subscription, $28,000.00 price, $15,000.00 resale, $1,500.00 a year insurance, $800.00 a year maintenance, 36 months.
- Subscription total: $500.00 × 36 months is $18,000.00.
- Owning depreciation: $28,000.00 minus $15,000.00 is $13,000.00.
- Owning running costs: ($1,500.00 + $800.00) × 3 years is $6,900.00.
- Owning total: $13,000.00 plus $6,900.00 is $19,900.00.
- Difference: $19,900.00 minus $18,000.00 is $1,900.00 in favour of subscribing.
And the other way: the monthly subscription fee that matches the $19,900.00 owning total over 36 months is $552.78 a month, the resale value at which owning costs exactly the $18,000.00 subscription total is $16,900.00, and subscribing first costs more than owning in month 43, when the subscription total reaches $21,500.00 against $21,241.67 for owning.
Every branch, checked
- $400 a month subscription, same owning costs: $400 a month subscription, same owning costs: Subscription $14,400.00; owning $19,900.00 — Subscription saves $5,500.00.
- $600 a month subscription, same owning costs: $600 a month subscription, same owning costs: Subscription $21,600.00; owning $19,900.00 — Owning saves $1,700.00.
- $22,000 price, $12,000 resale, $500 a month: $22,000 price, $12,000 resale, $500 a month: Subscription $18,000.00; owning $16,900.00 — Owning saves $1,100.00.
- $20,000 resale, $500 a month: $20,000 resale, $500 a month: Subscription $18,000.00; owning $14,900.00 — Owning saves $3,100.00.
- $2,500 a year insurance, $500 a month: $2,500 a year insurance, $500 a month: Subscription $18,000.00; owning $22,900.00 — Subscription saves $4,900.00.
- $2,000 a year maintenance, $500 a month: $2,000 a year maintenance, $500 a month: Subscription $18,000.00; owning $23,500.00 — Subscription saves $5,500.00.
The reverses, worked backwards
- Monthly subscription fee that matches the $19,900.00 owning total over 36 months: $552.78 a month — at $552.78 a month the figures are Subscription $19,900.08; owning $19,900.00 — Owning saves $0.08.; at the lower neighbor the figures are Subscription $19,540.08; owning $19,900.00 — Subscription saves $359.92.; at the upper neighbor the figures are Subscription $20,260.08; owning $19,900.00 — Owning saves $360.08..
- Resale value at which owning costs exactly the $18,000.00 subscription total: $16,900 — at $16,900 the figures are Subscription $18,000.00; owning $18,000.00 — Exactly even.; at the lower neighbor the figures are Subscription $18,000.00; owning $18,500.00 — Subscription saves $500.00.; at the upper neighbor the figures are Subscription $18,000.00; owning $17,500.00 — Owning saves $500.00..
- Horizon in months at which subscribing first costs more than owning at $500 a month: 43 months — at 43 months the figures are Subscription $21,500.00; owning $21,241.67 — Owning saves $258.33.; at the lower neighbor the figures are Subscription $21,000.00; owning $21,050.00 — Subscription saves $50.00.; at the upper neighbor the figures are Subscription $22,000.00; owning $21,433.33 — Owning saves $566.67..
What the defaults assume
The defaults are a $500.00 monthly subscription, a $28,000.00 purchase price, a $15,000.00 resale after 36 months, $1,500.00 a year of insurance, $800.00 a year of maintenance and a 36-month horizon, so the headline is a three-year comparison for a mid-priced car. The model is two multiplications, one subtraction and one addition: the subscription total is the fee times the horizon, the owning total is depreciation plus yearly running costs scaled to the horizon in years, and the verdict is their difference. The fee reverse is checked at $10.00 a month either side, because $10.00 times 36 months is $360.00 of subscription total; the resale reverse is checked at $500.00 either side, because $500.00 of resale is $500.00 of owning total. The model does not include taxes, financing interest, subscription mileage overage charges, or the value of flexibility — swapping cars mid-subscription — those belong to the actual offer documents, not to the headline arithmetic.
Output · formula · meaning
| Output | Formula | What it means |
|---|---|---|
| Subscription total | monthly fee × horizon in months | $18,000.00 — $500.00 × 36. |
| Owning total | (purchase price − resale value) + (insurance + maintenance) × years | $19,900.00 — ($28,000.00 − $15,000.00) + ($1,500.00 + $800.00) × 3. |
| Saving from subscribing | owning total − subscription total | $1,900.00 — $19,900.00 − $18,000.00. |
| Owning cost per month | owning total ÷ horizon in months | $552.78 — $19,900.00 ÷ 36. |
| Break-even subscription fee | owning total ÷ horizon in months | $552.78 — $19,900.00 ÷ 36. |
| Break-even resale value | purchase price + running costs − subscription total | $16,900.00 — $28,000.00 + $6,900.00 − $18,000.00. |
| $400 a month subscription, same owning costs | same model | Subscription $14,400.00; owning $19,900.00 — Subscription saves $5,500.00. |
| $600 a month subscription, same owning costs | same model | Subscription $21,600.00; owning $19,900.00 — Owning saves $1,700.00. |
| $22,000 price, $12,000 resale, $500 a month | same model | Subscription $18,000.00; owning $16,900.00 — Owning saves $1,100.00. |
| $20,000 resale, $500 a month | same model | Subscription $18,000.00; owning $14,900.00 — Owning saves $3,100.00. |
| $2,500 a year insurance, $500 a month | same model | Subscription $18,000.00; owning $22,900.00 — Subscription saves $4,900.00. |
| $2,000 a year maintenance, $500 a month | same model | Subscription $18,000.00; owning $23,500.00 — Subscription saves $5,500.00. |
| Monthly subscription fee that matches the $19,900.00 owning total over 36 months | reverse | $552.78 a month: Subscription $19,900.08; owning $19,900.00 — Owning saves $0.08. |
| Resale value at which owning costs exactly the $18,000.00 subscription total | reverse | $16,900: Subscription $18,000.00; owning $18,000.00 — Exactly even. |
| Horizon in months at which subscribing first costs more than owning at $500 a month | reverse | 43 months: Subscription $21,500.00; owning $21,241.67 — Owning saves $258.33. |
| $0 a month subscription fee | same model | Subscription $0.00; owning $19,900.00 — Subscription saves $19,900.00. |
| Resale value equal to the $28,000 price | same model | Subscription $18,000.00; owning $6,900.00 — Owning saves $11,100.00. |
| Negative subscription fee | same model | Subscription fee — $0 or more a month. |
| $0 purchase price | same model | Purchase price — more than $0. |
Who uses this
- A driver choosing between a subscription and buying outright — $18,000.00 against $19,900.00, with the $16,900.00 break-even resale as the decision line.
- Someone who changes cars every two years — the horizon reverse shows subscribing staying cheaper through month 42.
- A buyer with a car that holds its value — the $20,000.00-resale branch shows owning winning by $3,100.00 when resale is strong.
- A commuter comparing a cheap subscription against an older car — the $400.00-fee branch shows subscribing winning by $5,500.00 when the fee is low.
Accuracy & limitations
Figures are the model’s own arithmetic on the numbers you type, computed from unrounded values and displayed rounded HALF_UP to 2dp. The main limitation is the resale estimate and the subscription terms, not the arithmetic: resale values move with model, condition and mileage, and a subscription fee that excludes insurance or caps mileage understates the subscription side. Taxes, financing interest and mileage overage charges are not modelled, and this page is a calculation tool, not buying advice.
Cite this calculator
Subscribing at $500 a month costs $18,000 over 36 months; owning a $28,000 car resold for $15,000 costs $19,900. Source: Bright Side Kit, https://brightoolbox.com/car-subscription-vs-owning/, accessed 28 October 2026.
Frequently asked questions
How is the owning total calculated?
Depreciation plus running costs. ($28,000.00 − $15,000.00) plus ($1,500.00 + $800.00) × 3 years is $13,000.00 + $6,900.00 = $19,900.00.
What subscription fee makes subscribing exactly even with owning?
$552.78 a month. At $552.78 a month the 36-month subscription total is $19,900.08, essentially the $19,900.00 owning total; below $552.78 subscribing wins.
What resale value makes owning exactly even with subscribing?
$16,900.00. At a $16,900.00 resale the owning total is $18,000.00, exactly the subscription total; above $16,900.00 owning wins.
After how many months does subscribing cost more than owning?
Month 43 at $500.00 a month. Through 42 months the subscription total is $21,000.00, below the $21,050.00 owning total; in month 43 it reaches $21,500.00 against $21,241.67.
Is a car subscription the same as a car lease?
No. A subscription is a flat monthly fee that usually bundles insurance and maintenance with the freedom to swap cars; a lease is a fixed-term finance agreement with a down payment, mileage limits and end-of-term conditions.
Does the subscription fee include insurance?
This model assumes it does. Insurance and maintenance sit on the owning side only. If your subscription excludes insurance, add that cost to the subscription side before trusting the verdict.
What costs are not included?
Taxes, financing interest, fuel or charging, and mileage overage charges. Fuel and charging apply to both sides roughly equally, so they rarely change the verdict; taxes and interest can.