Many people depend on their own car in everyday life. But a car brings with it some costs, some of which you are not even aware of. Normally, the total costs of a car are underestimated by about half. Reason enough for the Bernese start-up, Carvolution, to focus on complete transparency and offer cars at a fixed monthly price. The young company promises not only transparency, but also low total costs.
Why the total costs of a car are incalculable
Regardless of whether the car is bought or leased: once a year the insurance bill comes, then it is time for new tyres or unexpectedly an expensive repair is due. According to a study, the total costs of a car are underestimated by about half. In the case of a purchased car, the loss in value in particular, in other words the depreciation, is underestimated. Many people only realise the actual amount of this depreciation when they later sell the car on and only receive a fraction of the purchase price they had hoped for. With leasing, usually only the leasing rate and the fuel or charging costs are taken into account. The down payment at the beginning and the comprehensive insurance are quickly lost in the cost analysis.
Transparent and low total costs for the car
Carvolution has brought an alternative to leasing and buying a car onto the Swiss market. The aim is not only to keep a clear overview of the costs of owning a car, but also to reduce the overall costs of it.
The company, which is based in Bern, succeeds in doing this by offering large quantities and a careful selection of the cars on offer. Thus, Carvolution does not offer a choice of every model of every brand, but one benefits from low overall costs with the approximately 40 models of various brands. For example, the Dacia Spring Step 1 Edition, an electric car, can be driven for as little as 299 francs per month. Since the monthly fixed price already includes all costs such as comprehensive insurance, redemption, new tyres, service visits to the garage or tyre changes, there are no additional costs apart from refuelling and charging.
A car subscription is often cheaper than a leasing deal
The fact that a car subscription, as the Carvolution concept is called, is financially worthwhile for many people is also confirmed by the comparison portal Comparis: a car subscription is often cheaper than leasing.
A car subscription works as follows: once the right car has been found on the website, whether it is a small, estate, SUV or electric car, the subscription is configured. This includes, for example, selecting the duration of the subscription. This can be a few months or up to four years. The longer the subscription period, the lower the monthly costs. The canton of residence required for the redemption is also selected, as this also has an influence on the monthly costs due to taxes. If you drive a lot, choose a larger kilometre package, if you drive less, choose a smaller one. If you are unsure which kilometre package is the right one, or sometimes drive more and then less, you can rest assured. Because the app allows you to adjust the kilometre package on a monthly basis during the subscription. So you never pay too much and are protected from being charged for additional kilometres.
Selling your old car
Since not everyone wants to order a car subscription directly online, you can also order a non-binding offer or start a consultation via telephone or live chat function. Carvolution also buys your old car, saving you the sometimes tedious process of selling it on. Within a few hours, the young company sends an offer to buy the car, which is valid for 14 days. Selling their old car free of charge and online is available to everyone!
When leasing or buying a car is still worthwhile
Those who attach great importance to a huge selection of cars and want very special configurations for their new car will not be happy with Carvolution or with a car on subscription. But for all those who use a modern car in everyday life and want to keep the total costs as low and transparent as possible, car subscription is ideal.
A purchase is particularly worthwhile when it is certain that the car will be driven for at least 8 years. It is important to note that you bear the risk for the residual value yourself. Prices are currently volatile, especially for electric cars and diesel vehicles.
Typical car subscription customers
Typical Carvolution customers include new drivers who are not yet sure which car they want to drive. They often choose a small car, share it with friends and pick shorter terms. Young families, that keep an eye on their budget, choose a family car with many safety and assistance systems so that they always arrive safely at their destination. And pensioners often choose an SUV with a particularly good view of the road. Usually with shorter mileage, as it is sometimes unclear how long they will still be driving.
But the car subscription is not only popular with private individuals, but also with Swiss SMEs. They choose cars for employees, for temporary assignments or for the Allowance Programme. In this way, they preserve their liquidity and always remain flexible thanks to the minimum durations they can choose themselves.
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