According to research from MarketsandMarkets, the vehicle subscription market grew from roughly $4.8 billion in 2024 and is projected to hit $22 billion by 2035. That's not a typo. Some analysts predict even faster growth, with one forecast showing the market reaching $791 billion by 2032, though that seems wildly optimistic. Either way, something's clearly shifting in how we think about getting from point A to point B.
The All-Inclusive Package Simplifies Everything
Traditional car ownership drowns you in bills. There’s insurance, registration, maintenance, repairs—not to mention the unexpected breakdowns that empty your savings account. Car subscriptions bundle all of that into one predictable monthly payment.
You're essentially renting flexibility. If you need an SUV for a ski trip, you can swap it in. If you’re curious to try an electric vehicle without committing to buying one, you can subscribe for a few months and see how it fits your lifestyle.
The convenience appeals especially to younger consumers who grew up with subscription everything. According to a Deloitte survey from 2024, about 28% of people aged 18–34 showed interest in car subscription models, compared to just 18% across all age groups.
The Math Gets Complicated Fast
Monthly subscription fees typically run anywhere from $500 to $1,500 depending on the vehicle. That includes insurance, maintenance, and roadside assistance, which sounds reasonable until you start doing the actual calculations against buying or leasing.
Over a three-year period, you might spend $18,000 to $54,000 on subscriptions with nothing to show for it at the end. Compare that to buying a used car for $15,000, and suddenly the subscription model looks expensive. Sure, the car needs maintenance and insurance, probably another $3,000 to $5,000 over three years, yet you still own an asset worth something when you're done.
Leasing falls somewhere in between. Monthly payments are lower than subscriptions, you're building some equity, though you're locked into longer terms with penalties for early termination. The subscription advocates argue that flexibility justifies the premium, and for some people—frequent movers, short-term workers, those testing electric vehicles—that might actually be true.
Car Companies Are Rethinking Their Entire Business Model
General Motors announced back in 2021 that they wanted to generate $20 to $25 billion annually through subscription services by 2030. That's not just car subscriptions; they're also monetizing features through software updates, charging monthly fees for things like heated seats or remote start that used to come standard.
Some legacy manufacturers have already retreated from direct subscription services, though. Volvo's "Care by Volvo" struggled to scale profitably. BMW and Mercedes-Benz have pulled back from their own programs, realizing that managing subscription logistics requires skills more suited to tech startups than traditional automakers.
Ownership Still Wins for Most Long-Term Situations
If you plan to keep a car for seven to ten years, buying remains the most economical choice despite higher upfront costs. The total cost of ownership, even factoring in maintenance and depreciation, typically beats paying subscription fees indefinitely.
Subscriptions make sense for specific circumstances like short-term needs, frequent relocations, testing vehicle types before committing, or situations where you absolutely cannot afford a down payment. They're a premium service for people who value convenience and flexibility over long-term financial optimization.
Urban Living Changes the Calculation
Cities are where subscriptions gain their strongest foothold. High parking costs, good public transportation, and congestion make full-time car ownership less attractive. A subscription that you can pause or cancel becomes more appealing when you only need a vehicle occasionally.
Young urban professionals without families can rely on a mix of public transit, ride-sharing, and occasional subscription access to vehicles. That combination often costs less than maintaining a car full-time in expensive cities.
The equation shifts dramatically once you move to suburbs or have kids. Suddenly you need reliable daily transportation that’s there when you need it. Subscriptions start looking less practical and more like an expensive luxury you're paying for whether you use it or not.
