Thanks to Carvolution, there are good cheap car models

If you want to buy or lease a new car, you first have to fight your way through a real cost jungle. And often does not have the perspective: A current scientific study by the University of Mannheim together with the US elite university Yale shows that many overestimate the actual costs of their car by 50 percent. “Most of them never even calculate the total costs of their own car,” says Adrian Boss, who works for the Bern start-up Carvolution takes care of purchasing and the fleet (see interview below). Carvolution offers cars at up to 45 percent lower total costs than with conventional leasing.

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It pays to know exactly what your own car costs per month. The Touring Club Switzerland (TCS)
Calculates, for example, that a car with a value of 35,000 francs the average annual expenditure is just under 7,500 francs (excluding gasoline and parking space), which results in 620 francs per month.

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Car subscription: simple, flexible, inexpensive

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A subscription car for a fixed monthly price! This is the revolutionary offer from Carvolution. The Swiss provider has a new car that is precisely tailored to personal needs. Taxes, insurance, even tire changes and service at the nearby garage are included. There are no nasty surprises and high bills for service and maintenance.

If you like it to be comfortable and can do the math, take a car subscription from Carvolution clear advantage. In addition, the subscription period can be set between 3 and 36 months and can then be canceled within a month.

Carvolution offers 25 cars – from small cars for the city to premium SUVs or Tesla Model 3 – at a fixed price for private individuals and companies. Customers just have to drive their car and the rest will be taken care of Carvolution.

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This applies in any case to a car that was paid for in cash or taken on lease. A look at the car subscription, however, shows that this way of having a new car is between 14 and 45 percent cheaper than buying and leasing, depending on the model. example Audi Q3, an SUV that is popular with many customers and that is very versatile and safe: over three years, the savings in the subscription model compared to cash purchase are around 37 percent, i.e. over 17,000 francs. Compared to the total cost of a leased car, there are savings of around 39 percent (see graphic below). Other models are also cheaper in this comparison, such as the Fiat 500, one of the most popular small cars. He is at Carvolution monthly around 170 francs cheaper than leasing. The Mercedes-Benz C-Class even 48 percent – so by almost half.

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Fleet boss Adrian Boss says in the following interview why Carvolution can offer the vast majority of models so cheaply and what drivers should pay attention to when calculating the costs.

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Adrian Boss, you are responsible for purchasing and the fleet at Carvolution. What do you pay attention to when acquiring the models?

Above all, I make sure to get very valuable cars. Furthermore, all of our cars are very well equipped so that our customers really feel comfortable in them and are safe on the road. The diversity of the fleet also plays an important role. We don’t need every model on offer, but we do need a certain selection. A few cars for the smaller budget and some from the premium segment.

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Why can Carvolution offer so massively cheaper?

At Carvolution we usually offer around 25 models. We concentrate on the cars that are most popular and therefore lose the least value. This enables us to keep the monthly costs for a car massively lower than if someone were to buy or lease the same car. As the first and largest car subscription provider in Switzerland, thanks to our size, we can generate very attractive conditions. Our fleet management not only allows us to use the fleet perfectly, but also very efficient and cost-effective processes for everything to do with cars.

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Can the difference become even greater in the future?

Certainly. Even as the largest car subscription provider in Switzerland, there are still many optimization options. Above all, we want to expand our range in the future, including for electric and hybrid cars. There is still a certain amount of uncertainty in society, especially when it comes to electric cars. Since customers do not bear any financial risk with us, the entry into electromobility is included Carvolution very easy. In addition to the attractive prices, the customer experience is also one of our biggest differences to leasing or buying. We want to expand the benefits there too. For example, customers can adjust their mileage package on a monthly basis so that nobody pays too much with us or is surprised by additional costs in the end.

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For which models is the price difference between buying and leasing particularly high?

At Carvolution the total costs compared to leasing are between 14 and 45 percent lower than with leasing. Most of the time, the price difference is higher for more expensive cars, since fixed costs, such as insurance or taxes, make up a smaller part of the total costs. The only exception for us is the Tesla brand. There, customers come to us mainly because of the simplicity. At Tesla, we have not yet managed to get great conditions despite our size. But what is not, can still become.

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Why do you think so many people don’t know what the total cost of the car actually is?

Most of them never really calculate the total cost of their own car. Often only fuel costs and perhaps insurance are taken into account. The biggest cost point is usually ignored: the depreciation of the car. This is very difficult to estimate and budget for until the vehicle is resold. You only get the final total cost of the car when the vehicle is sold again. According to a study, the only thing that people correctly estimate is the cost of fuel. Loss of value and insurance, however, as well as taxes, tires and regular services are significantly underestimated. Not to be forgotten is the risk of unexpected costs with used cars. Once something breaks, maintenance costs can quickly skyrocket.

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How does it look with leasing?

A similar picture emerges. Many only consider the leasing rate. The initial down payment of several thousand francs and the ancillary costs related to the car, as with a purchase, are often forgotten. The rule of thumb for the total cost of the car is: The leasing rate times three results in the total cost.

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Why do you show the total costs so transparently at Carvolution?

At Carvolution If you have your own car at a fixed monthly price, everything is included except for the fuel and there are no additional costs. At first glance, however, our prices seem very high, as most Swiss people are unaware of the total cost of a car bought or leased. That is why it is crucial for us to clarify the issue of costs as transparently as possible, because this is the only way that potential customers can recognize the enormous price advantage in addition to the flexibility and simplicity of our concept.

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In your opinion, what is the most important thing that people should consider when buying a car in terms of costs?

In my opinion, it’s very important to keep an eye on the time horizon, i.e. how long you want to keep the car. When you buy it, many assume that you will drive the same car for eight years. However, the statistics show that even those under 50 change cars on average around every five years. In most cases, buying a new car for five years does not make financial sense. Anyone who expects a realistic time horizon for the new car will recognize the advantages he or she will have with Carvolution hat.

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Your new car on subscription

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Carvolution offers 25 cars – from small cars for the city to premium SUVs or Tesla Model 3 – at a fixed monthly price for private individuals and companies. Customers just have to drive their car and the rest will be taken care of Carvolution.

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Published: December 2nd, 2020, 10:40 pm–

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