With the rise in the price of new cars in recent years, the subscription car model has been gaining ground and offers more and more options. Automakers, dealerships, rental companies, insurance companies and startups are investing in this service and disputing drivers.
In this model, instead of buying the car, the customer subscribes for a period starting from one year. The monthly fees usually include, in addition to the vehicle, expenses with insurance, taxes, scheduled inspections and maintenance.
It is possible to subscribe from manual 1.0 cars to armored sports models and vans. See a comparison of the options at the end of the report.
Monthly fees for popular models such as Renault Kwid and Fiat Argo range from R$1,400 to R$2,100. The price of the same car can vary greatly from one service to another. The minimum contract period is usually 12 months. The longer, the lower the monthly fee.
Financial Analysts Calculate Subscription Costs Less Than Purchase
Financial analysts point out that the subscription brings more advantages because the customer stops losing money with interest and depreciation. And they don’t keep fixed assets either: instead of putting R$100,000 on the purchase of a car in cash, the person can invest the money and earn income, for example.
“Overall, the subscription model is on average 40% cheaper than financing the same vehicle and 14% cheaper than purchasing it in cash (considering contracts lasting 24 months)”, points out a report from the bank BTG Pactual.
BTG considers that the rental market is at an early stage in Brazil and that it has great potential for expansion, especially in the SME (Small and Medium Enterprises) and individuals sector.
Data from ABLA (Brazilian Association of Car Rental Companies) indicate that the vehicle subscription market in the country already covers 106 thousand vehicles. Between 2014 and 2019, an average of 2.5 million cars were sold per year in Brazil.
Porto Seguro, for example, had 76% revenue growth and 26% fleet growth in its service subscriptions division in the third quarter of this year, compared to the same period in 2021. The current fleet exceeds 14 thousand vehicles.
“We started in 2016. Since then, growth has been constant. Demand has exceeded our expectations, especially in more recent periods”, says Gustavo Fehlberg, responsible for the service at Porto.
“The number of Movida Zero KM subscribers grew 40% in 2022 compared to the same period in 2021”, says Felipe Zogbi, executive director of the service. “The estimate is that the modality will continue with this growth rate in 2023. The State of São Paulo alone represents about 60% of total customers.”
“This year had a very positive balance in vehicle rental in general. People returned to leave their homes and travel”, says David Silva, commercial director of Livre, linked to the Unidas rental company. “With the resumption of events and commercial activities, demand is increasingly heated.”
“The price of new cars went up a lot after the pandemic. Before, models like the HB20 cost R$50,000, R$55,000. Today they are in the range of R$75,000 to R$80,000. But the price of subscriptions has remained unchanged. more or less stable, which generates an advantage for the consumer”, evaluates Carlos Castro, CEO of Super Rico, a financial planning platform.
Castro made a comparison with the acquisition of a HB20 1.0 manual zero km, worth R$ 79,481. After one year, the consumer would have disbursed a total of R$ 89 thousand, including expenses with insurance, fees, review and depreciation. When renting, the total expense would be R$ 22,788.
In addition to the financial issue, one of the main advantages of the service is not having to deal with various bureaucracies that involve having a car, such as choosing insurance, paying taxes, making revisions and negotiating the purchase and sale of the vehicle.
“The other day, I had a problem with the exchange, I called the Turbi and they brought me another car quickly, in the place where I was”, says economist Jonatha Mendes, 37. He has been using rental cars for three years and said he had some troubles. “Sometimes you do the entire registration, you arrive to remove it and they say that things are missing”, he says.
“When I had a car, I didn’t look at the deadlines and missed the revisions. Now they let me know”, comments Aline Amaral, 36, a businesswoman. She made a contract with For You Fleet for herself and other employees at her company. “I wanted to have lots of options to choose from, and I did.”
“The rental companies are able to get cars at lower prices than regular customers because they buy in large quantities and have tax exemptions”, says André Campos, CEO of For You Fleet.
Created two years ago, the company does not have its own fleet: when a customer places an order, the company buys the vehicle at dealerships or manufacturers and makes it available within a few days. The tactic helps to reduce the delivery time, which can exceed 50 days when ordering from automakers and rental companies.
“In a rental company, the delivery period would be five to eight months. I could use another car in the meantime, but it would be new. I preferred to close with Porto Seguro, which delivered in less than ten days”, comments José Cyrillo Neto, 32, lawyer who signed a car this year.
SP has more than ten subscription car companies
THE Sheet analyzed more than ten subscription car options and found very similar conditions. Packages include insurance, taxes and fees and generally allow online booking. The car can then be picked up at a store or delivered to the subscriber’s home. Payment is made via credit card or check.
All services set a quota of kilometers to run per month, starting at 500 km. If the customer uses more than agreed, he pays an extra fee. The unused balance in the month can usually be consumed in the following months, which gives some flexibility.
Most brands allow you to register additional drivers, who will also be able to drive the vehicle. Some services, such as Flua! and Porto Seguro, include residential maintenance, to solve small problems, such as leaks.
Packages often include scheduled overhauls and changes, such as oil. But damage caused to the vehicle, such as crashes and accidents, are the responsibility of the customer, who needs to pay the insurance deductible if necessary.
All the options consulted veto the use of the vehicle to make rides by application, such as Uber and 99. There are other plans for this purpose. And, in several cases, the customer can choose to buy the vehicle at the end of the period, discounting the depreciation amount.
What to look out for when comparing plans?
See a comparison of the main services:
wave
It works as a marketplace that connects customers to various services, but you have to leave the data to receive the proposal later.
Lower monthly fee: Fiat Mobi, R$ 1,744. in the 36 month plan.
Minimum period: 12 months
Minimum monthly deductible: 1,000 km
Area of operation: national
Porto Seguro Bank Subscription Car
It has a wide variety of brands and models, from basic to luxury models, and quotes on the website. Package includes residential services such as plumber and locksmith.
Lower monthly fee: HB20, for BRL 1,899 in the 24-month plan
Minimum period: 12 months
Minimum deductible: 12,000 km per year (1,000 km/month)
Area of expertise: state of SP and metropolitan regions of Rio de Janeiro and Curitiba.
For You Fleet
It has cars from more than 20 brands, including Audi, Land Rover, Volvo, Mercedes-Benz and Porsche, and offers extras such as armoring, personalization, telemetry and taking the vehicle home for inspections.
Lower monthly fee: Chevrolet Onix automatic, for R$ 2,700 monthly
Minimum period: 12 months
Minimum franchise: 1,000 km per month
Area of operation: national
Flow!
It brings zero km models manufactured by Fiat, Jeep and Peugeot, from 1.0 to SUVs and pickups. It offers residential assistance and has Black Friday discounts. It has some electric models, like Fiat 500E and Peugeot E-2008. Customer can make an entry to reduce the value of the installments.
Lower monthly fee: Fiat Mobi, R$2,031 in the 36-month plan.
Minimum period: 12 or 24 months, depending on the model
Minimum franchise: 500 km per month
Area of expertise: not informed
Ford Go
It offers just three models: the Ranger pickup, the Territory SUV and the Transit van. Vehicles can take 45 days to be delivered.
Lower monthly fee: Ford Ranger, R$ 5,500 in the 12-month plan.
Minimum period: 12 months
Minimum franchise: 1,000 km per month
Area of operation: national
Leven
The company is linked to a group that brings together 50 dealership networks in Brazil and offers vehicles from at least 13 brands, including Caoa Chery, Chevrolet and BMW.
Lower monthly fee: Fiat Mobi for R$ 1,690 in the 48-month plan.
Minimum period: 12 months
Minimum franchise: 1,000 km per month
Area of operation: national
Free
Connected to Unidas rental company. The model list has nine options, including Onyx, HB20, VW Taos and FIat Pulse, also in automatic versions. It accepts people over 18 years old, and payment is made by credit card only.
Lower monthly fee: Chevrolet Onix, for R$ 2,235.
Minimum period: 12 months
Minimum franchise: 1,000 km per month
Nationwide
find meoo
Great offer of models. Car can come with insulfilm and insurance covers damages to third parties. However, there is no quotation on the website: you must leave the data to receive the information later by email.
Lower monthly fee: Renault Kwid, R$1,759 in the 24-month plan.
Minimum period: 18 months
Minimum franchise: 1,000 km per month
Area of operation: national
Moved Zero KM
It has more than 60 models available and promises fast delivery, within two business days. It accepts clients aged 18 and over who have a permanent driver’s license. It has Black Friday discounts.
Lower monthly fee: Fiat Mobi, R$ 1,589.
Minimum period: 12 months
Minimum franchise: 1,000 km per month.
Area of operation: national
Nissan Move
It brings more expensive models, such as the Frontier pickup, the Versa sedan and the Leaf hatch, 100% electric. Allows you to register an unlimited number of extra drivers. Delivery may take more than 4 months.
Lower monthly fee: Automatic Knics for R$ 2,519 in the 36-month plan.
Minimum period: 12 months
Minimum franchise: 1,000 km per month
Area of operation: national
Renault On Demand
It brings several models from the French manufacturer, including the Sandero hatch, the Duster SUV and the Oroch pickup. Delivery may take more than 50 days.
Lower monthly fee: Renault Kwid, R$1,549 in the 36-month plan.
Minimum period: 12 months
Minimum franchise: 1,000 km per month
Area of operation: national
turbo
It only offers automatic models, which can be rented month by month and also by the hour, day or week. The amount gets smaller as the loan period increases, which must be paid by credit card.
More affordable monthly fee: Chevrolet Onix automatic, R$ 2,199
Minimum period: none
Minimum deductible: without. Customers have the option of paying R$ 0.90 per km driven, without paying directly for gasoline, or filling up on their own.
Area of operation: Greater São Paulo
usecar
Service of the Carbel group, which operates in the fleet sector. It has vehicles of various categories, from popular to SUVs, in contracts of up to 4 years duration.
More affordable monthly fee: VW Voyage for BRL 1,480 monthly in the 48-month plan.
Minimum period: 12 months
Minimum franchise: 500 km per month
Nationwide
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