Car subscription vs car ownership: What’s right for you?
You’re probably familiar with subscriptions — from Netflix to meal plans, it’s all about how we access what we want, when we want it. Ever thought of potentially subscribing to a car? This may sound a little baffling, especially when buying a car has long been a go-to for drivers looking to get dedicated car access. So how does ZipZap car subscription compare to traditional car ownership?
Let’s break it down. 👇
Upfront costs
Buying a car involves heavy initial outlay. This often comprises a 20 to 40% downpayment to registration fees like the $350 administrative fee and the Additional Registration Fee (ARF) which increases your car’s Open Market Value (OMV). These costs can quickly add up to tens of thousands of dollars for those looking to buy a car in Singapore.
With ZipZap, dedicated car access becomes more attainable with no upfront costs like downpayment, deposits or registration fees required. Simply pay your first monthly fee and start driving freely.
Monthly payments
Car ownership typically comes with monthly loan installments. Loan repayments can span years and you would also have to manage fluctuating interest rates depending on your loan package.
In contrast, ZipZap car subscription keeps your monthly costs simple and predictable:
✅ One all-inclusive monthly fee
✅ No surprise costs
✅ No loan commitments
ZipZap gives you full transparency on how much you will be paying for your dedicated car each month so you will never be blindsided by any unexpected costs.
Commitment and flexibility
Thanks to the Certificate of Entitlement (COE), car ownership translates to a 10-year commitment. This works if you are absolutely certain that you’ll be needing a car for the long-term, but not everyone is.
ZipZap gives you customisable lease durations starting from 6-months. This is ideal if:
✴️ Your needs are changing e.g. new job, new family routine
✴️ You want to test out having a car before committing
✴️ You value flexibility over being locked in
Ongoing expenses
On top of these initial fees, owning a car comes with a host of other costs as well. As a car owner, you will need to manage and pay for your car’s insurance premiums, road tax, servicing and repairs, emergency breakdowns, and more.
With ZipZap, all miscellaneous fees are covered. Your all-inclusive monthly car subscription fee covers insurance, road tax, and full servicing so you won’t have to worry about paying any additional fees. If your car ever needs maintenance, you’ll even receive a replacement car at no additional cost so your day will not be disrupted.
Loan impact and financial freedom
Here’s something many don’t realise: taking up a car loan affects your Total Debt Servicing Ratio (TDSR) which in turn affects your eligibility to take out other loans (like for a home for instance).
More specifically, the TDSR is the percentage of the borrower’s gross monthly income that goes towards repaying their monthly debt obligations. For example, if your gross monthly income is $10,000, and $4,000 of it goes to paying off your loans each month, then your TDSR is 40%. Your TDSR should be less than or equal to 55%. If it exceeds 55%, you will not be eligible for additional loans.
Fortunately, a ZipZap car subscription is not a loan so it will have no impact on your TDSR. This means enjoying dedicated car access while still maintaining financial headroom for your bigger life goals.
Bonus feature: Subscribe & Share [beta]
Subscribe & Share is a unique feature in ZipZap’s car subscription service. It’s an opt-in feature that allows subscribers to list their car on GetGo’s carsharing platform during periods of non-use. Through Subscribe & Share, you can get up to $90/day to offset your car subscription fee.
This first-in-market feature gives you the convenience of a personal car while making car access more financially sustainable.
The bottom line: Which is for me?
There are key differences between car ownership and car subscription. Rather than one being definitively better than the other, think of which option better meets your needs.
ZipZap makes car access simple, flexible, and sustainable. No loans, no downpayments, no surprise costs — just a car that fits your needs driven freely on your own terms.
