Car Subscription vs Car Lease in Australia – Full Cost Breakdown
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Car Subscription vs Car Lease in Australia: Full Cost Breakdown
Buying and leasing are no longer the only options if you want a set of wheels.
A car subscription combines the convenience of a rental with the flexibility: one weekly payment, no balloon payout. But is it actually cheaper than a three‑ or five‑year lease? Let’s run the numbers.
1. Up‑front costs
| Cost item | 36‑month Lease | Rent Ridez Subscription |
|---|---|---|
| Deposit / bond | $3 500 – $5 000 | $1,200 (fully refundable) |
| Establishment fee | $395 | $0 |
| Stamp duty | ✅ Lessee pays | ✅ Included |
| Total day‑one outlay | ≈ $4 000 | $1,200 |
Quick win: Re‑invest the $2,800+ you save into fuel or your next long‑weekend road trip.
2. Ongoing weekly costs
Let’s use a 2021 Tesla Model 3 (market value $63,000) as an example:
| Expense | Lease (per week) | Subscription (per week) |
| Finance repayment | $245 | – |
| Comprehensive insurance | $45 | Included |
| Servicing & maintenance | $20 | Included |
| Registration | $22 | Included |
| Roadside assist | $5 | Included |
| True weekly cost | $337 | $470 |
With Rent Ridez, you're paying a premium for flexibility, tech, and convenience—but gaining massive benefits in other areas.
3. Flexibility & risk
* Mileage limits – Lease capped at 15 000 km/year (288 km/wk) vs unlimited km with Rent Ridez. * Early exit fees – Breaking a lease can cost >$2 000; subscription pauses with 14 days’ notice. * Technology risk – Owning a depreciating asset vs swapping into the latest EV when you feel like it.
4. Tax optimisation
Subscriptions fall under operating expenses for small-business GST credits and avoid FBT headaches.
5. Case study: Sarah the UX Designer
Sarah takes a $470/week Tesla Model 3 subscription and cancels after an 18‑month interstate contract. Total cost = $37,440. A 36‑month novated lease on the same model would have locked her in for 1.5 years more and a $16,000 residual.
6. FAQ
Q: Do subscriptions hurt your credit score?
A: No – there’s no loan recorded, only a quick ID check.
Q: Can I claim the GST back?
A: Yes, if you’re GST-registered.
Conclusion
When you map out all the dollars and flexibility, subscriptions give you a premium experience with zero risk and full control. They’re not always cheaper, but they are often smarter.
👉 Browse our cars and start driving this week.