Lease, finance, pay cash or subscribe for a car?

Nowadays it is very easy to buy a new car.


Lease, finance, pay cash or subscribe for a car?

At least you might think so. But if you take a closer look, you will quickly realize that there are a number of different ways to get a new car. If you are financially flexible, you can buy a car and pay for it in cash or by bank transfer. But it is also possible to finance a car and thus make an installment payment. But what about car sharing, leasing or even a car subscription?? In the following article, we have taken a look at what the different options are and for whom they are suitable.

The car subscription

First we would like to have a look at the car subscription. One might rightly ask how one can subscribe to a car. the solution is actually quite simple and a great option for the right consumer.

A car subscription is an all-inclusive package, such as the SIXT+ car subscription. In addition to the subscription fees, which are billed on a monthly basis, only the fuel costs or, in the case of an e-car, the electricity costs have to be added. The nice thing is: similar to other subscriptions, for example of music or TV streaming services, you also have the possibility to cancel the car subscription on a monthly basis.

This offer is perfect for people who only have a temporary need for a vehicle. It’s easy to subscribe to a car and rent it at any time. Returned monthly. The practical thing about this variant is that this vehicle will continue to be used by other customers after it has been returned. A car that is used by several people is also a concept that benefits our environment.

Car sharing in the cities

Whereas with a car subscription the individual vehicle is used one after the other, with car sharing the vehicle can be used by anyone at any time if it is not currently in use. However, the basic prerequisite for this is the membership or. registration with the respective providers in order to have access to available vehicles. Here, too, you pay an all-inclusive price that is billed to the minute.

This offer is becoming more and more attractive for metropolitan areas. instead of many people driving many cars, they share vehicles. The advantages for the environment, especially in the inner cities, should also be emphasized. People who very rarely need a car, for example for a longer trip outside the city center, for a larger purchase or for a convertible drive at the weekend, can thus easily take advantage of the growing car sharing offer. People living in suburban areas or in the countryside cannot benefit from this yet, as this offer is currently only reserved for some cities.

Car leasing

Vehicle leasing is a much longer-term commitment than the above-mentioned options. Here, a term of between one and five years is usually specified. Depending on the vehicle and contractual conditions, a down payment may be due at the beginning of the contract.

You could almost think that this is a financing and in fact it is structurally similar. With the crucial difference that a leased vehicle is returned to the dealership after the agreed period of time. If necessary, one takes a new vehicle in the connection and goes then into the next leasing period.

This offer is interesting for private as well as commercial customers. After the expiration of the term, the car is returned and a new one can be taken away. Especially for people who always like to drive the newest car, this is a great option. In this context, however, it should be pointed out that this behavior is the most environmentally unfriendly, so to speak. Thus, the same person uses several vehicles within a few years, although the production of a single car would have been sufficient.

The car financing

In contrast to the variants mentioned so far, financing is a matter of buying a car. However, the purchase price is not paid in full, but in installments. Depending on the contractual agreement, a down payment and/or a final installment can be added to this installment payment. The level of interest also plays a decisive role here. Even in the car industry, 0% financing has arrived, but it is not the rule.

This variant of buying a car makes sense for people who are not able to pay the full purchase price right away or who do not want to do so for financial reasons. The purchase of a car is most relevant for people who depend on their own vehicle. Be it due to a remote place of residence, as a family car or for professional use.

Cash purchase of a car

If you have the money and are willing to buy a car and pay for it in full, cash is the best option. Unlike financing, this purchase is a completed transaction once the full amount has been paid. The vehicle is the property of the buyer.

In most cases, buying the car in cash allows for more favorable negotiation options during the purchase process. It is not uncommon for the cash price to be significantly lower than the price in the case of financing. Here, the strategic view is also advantageous. If you can afford it, in certain cases you should prefer to buy the car in cash.

Buying a car and driving it until it gives up the ghost is certainly a good option in terms of environmental sustainability. Provided, of course, that we are not talking about the large-engined sports car, which has a consumption that is completely out of keeping with the times.

There are many people who are dependent on their own vehicle in everyday life. In case of a family or even with pets, which are transported in this vehicle and leave their respective traces, a purchase is more sensible. The longer a vehicle is driven, the less it loses value due to these defects.


There really is no one right way to buy a car. It depends, as so often, on the individual behavior of the people. Someone who lives in a village environment without access to public transport will certainly not be able to do without a vehicle. The question then arises as to whether a leasing offer or the purchase or even the subscription comes into question. It depends on the actual use of the car.

Cities could do with a drastic reduction in traffic, not least because of their inhabitants. Since the daily needs for food and consumables are usually within walking distance, not every resident necessarily needs his or her own vehicle. Here car sharing offers and the car subscription could fulfill an important task to clear the streets a little bit. Also the noise and exhaust pollution could be easily achieved by these variants.

This does not mean, however, that everyone who lives in the city is not entitled to a car, and that those who live in the country are basically entitled to one. The variants of using a vehicle depend on the needs of the individual people. A responsible approach to it, however, is good for everyone.

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