Car, home, and even clothing subscriptions become popular; see when it’s worth it | spend well

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According to specialists, this trend is based on the thesis that new generations have a different relationship with goods. According to them, “Generation Z” youth (those born in a digital world and connected to the internet) and the “millennials” themselves (born at the turn of the millennium, between 1990 and 2000) tend to prioritize experiences over items..

Therefore, having a car, an apartment or even clothes is no longer essential. that’s where there are subscription services for cars, homes and even wardrobe items, which can be changed every month. The important thing for these young people is not to have them, but to enjoy these things.

“When we are younger, in fact we are less attached to the idea of ​​owning, even because younger people are still building their careers, their lives, the income is still not as high or stable. Life itself is not stable, the people move, they want more freedom,” says the Professor Henrique Castro, from FGV. He ponders, however, that people age and the need or desire to have an asset (such as a house) can appear over the years. However, still, there will always be a “new generation” demanding less possessions.

On the other hand, the Professor Guilherme Fowler, from Insper, highlights that it is not yet known how Generation Z will behave when they are older.

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“For me, as an analyst and economist, it’s still not clear how Generation Z and today’s young people will face their own aging. They may not want to have assets even when they’re older, because they don’t want to feel like their parents. It could be that they have this ‘aversion’,” he says. According to the expert, if this happens, demand for “on demand” and subscription products can last longer, both for that generation when older as well as for the younger generations to come.

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But after all, is living like this economically viable?

Although “on demand” service companies came up with a proposal to offer cheaper options to the customer (after all, a basic Netflix monthly fee is cheaper than a basic cable TV subscription), over time they also started to have it. a character of offering convenience. And as you’d expect, sometimes more convenient services can be more expensive. To find out if it’s worth it, according to experts, you need to map your consumption profile.

“If you subscribe to a service and use little, no matter how cheap it is, it’s the same logic as a person who eats little meat and goes to the steakhouse. They spend a lot for a small benefit,” says Professor Fowler, from Insper .

Castro, from FGV, agrees. For him, the first calculation the consumer needs to make is how much he uses that item and how much he spends to use it. “The idea of ​​the concept of renting these things instead of buying these things involves not only expensive goods. And we think about whether it is economically viable. We ask ourselves: do I buy a car or rent when I need to? It depends on the volume of use.“.

It reinforces, however, the idea of ​​convenience and the service being provided, which is often worth it for that consumer. “There is also the idea of ​​curation, a range of services that go beyond good, as we see, for example, in a wine and beer subscription club,” he says.

It is based on this that services such as the company’s emerged Clo.Rent, which offers clothing subscription (that’s right). In it, you choose the basic, super or master plan. Basically, customers pay R$189 per month and receive three pieces of clothing to wear that month. In the super, the value rises to R$ 319 for six monthly pieces. In the master, you pay R$ 549 for 12 pieces.

For electronics fans, there’s even a chance to “subscribe” to an iPhone. THE Alligator, a company specializing in electronics rental and subscriptions in the country, offers this possibility and has even started the iPhone 13 pre-subscription, Apple’s newest model. Rental prices range from BRL 1,385 to BRL 6,500, in the annual contract, depending on the device model.

And this type of “curating” is not limited to simpler services and products. she goes to real estate rental, in which companies like Housi offer houses and apartments that are already furnished and equipped with everything a person needs to survive (including furniture and services such as wi-fi, electricity and gas).

Still talking about “expensive” goods, there is the option to “subscribe”, through applications such as Turbi, a car for longer terms and not worrying about expenses such as insurance, documentation and even gasoline.

According to experts, however, you must not only do the math to see if they make sense, but also consider whether that type of service fits and makes sense within your lifestyle. In the end, paying for what you don’t use is always more expensive.

One of the newer waves of companies offering something for a subscription is rental. Anyone who has rented or even bought a property knows all the work and costs involved. In addition to finding a house or apartment, you have to make a contract, find a guarantor or pay a surety bond and, finally, have the job of furnishing, hiring an internet, TV and telephone plan, turning on the light and gas . That’s how the services of “home by subscription“. To put it mildly, they’re like a real estate agency in that you can choose a property and subscribe to live in it for as long as you like, usually with a 12-month limit.

The key point in this case is the convenience. After all, the property comes equipped with everything you need to live in it: furniture, light, internet and even cable television. So you don’t have to worry about the furniture or hiring services. Everything goes into the “package”.

“You have the chance to live as easily as calling an Uber. You choose for how long, whether you’re going to pay on your credit card, make a Pix… Anyway, everything is extremely easy,” he says Alexandre Lafer, president of Housí, one of the most popular “subscription housing” companies.

According to the executive, the model is advantageous not only because the customer can choose how they want to pay, but also because Housí manages to negotiate more advantageous prices with service providers.

“When we talk about consumption bills, as Housí buys in scale, we are able to provide advantageously. If the customer does everything himself, he has to buy equipment to install and use the wi-fi, make a minimum plan for the operator, he has to pay the fee to turn on the light, gas, etc,” he says.

In a region like Vila Olímpia, an upscale neighborhood in São Paulo, a 26 square meter apartment can be “signed” for R$ 3,845 in a 12-month period. Within the plan are the rent, condominium, property tax, water, electricity, internet and cable TV.

At the Fifth Floor real estate (which offers rents signed virtually, without the need for a guarantor or surety bond), a 28 square meter apartment is offered for R$ 3,100, including rent, condominium and property tax. It is also possible to find larger properties, measuring 50 square meters, in the same region, for R$ 3,200.

If it is taken into account that only one person lives in an apartment like this, he can consume an internet plan for R$100 a month and spend approximately R$60 on water and R$20 on gas. Therefore, it would be cheaper to live in the “traditional” rental model.

“Which these packages offer to customers is something that goes beyond the good, but it has a series of services built into the package. Not worrying about having to hire a service of internet, of having to deal with the power company, water. Is that you it still has the flexibility that if you have to move, you don’t have to break contracts. The idea is to make your life simpler, but it comes at a price. If you compare the same apartment or one that is very similar in both ways, maybe you would pay a little cheaper in the ‘traditional’ model, but it gives you more work”, says Professor Castro, from FGV.

In addition to the Housí, there is also the Casaí and Nomah. Both, however, are more geared towards rentals in shorter periods, like what happens in the already consolidated Airbnb. The big difference is the “curated” done by the companies, which not only choose well located properties but also promote renovations in order to make the environment as well equipped as possible.

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At Casaí, the average duration of stays is eight to 10 days. The properties managed by the company are not only on its own platforms but also on hosting sites such as Booking.com and Airbnb itself. Daniel Hermann, expansion director Casaí, explains that the company’s great differential is having an algorithm that detects whether searches are more intense for short or long stays and, thus, streamlines the price to meet the greater demand at that time.

At Nomah, 25% of customers lease over a month. “There are people who do three, six and even 12 months, but we never have contracts as long as 30 months. This is in line with today’s flexible day-to-day activities,” he says Thomaz Guz, president of the company. According to the executive, Nomah’s final price is lower than that of a well-equipped hotel.

In addition to houses, other services that have become popular are the car subscriptions, which can be a long term (such as those offered by rental companies) or very short, like the one offered by the Turbi app, which offers cars to be rented for a few hours.

At Unidas car rental company, the cheapest car available for rent is a Fiat Mobi Like motor 1.0. The customer can choose from 12 to 48 months of lease. In the case of a 12-month lease, with a limit of 1,000 km per month, the customer pays a monthly fee of R$ 1,799.90. In a year, therefore, the customer will spend R$ 21,599 with the subscription (and you will have saved amounts that you would spend on property taxes and insurance, for example).

In a 48-month subscription, the customer would pay R$1,299 monthly. Which would total R$62,352 at the end of the plan. To give you an idea, the same 0 km car is sold today for R$ 51,600.

At Porto Seguro, the cheapest vehicle available is the Renault Kwid Intense 1.0. In a 12-month package with 12,000 km (that is, 1,000 per month), the customer would pay R$ 1,709 per month. This totals R$20,508. already in 24 months, maximum period offered by the company, with 24,000 km, the customer would pay a monthly fee of R$1,669. This means that, at the end of two years, the customer would have paid R$ 40,056 for the car. To buy a vehicle of the same 0 km model, the customer needs to pay R$59,290.

If I’m going to keep this asset for a longer amount of time, probably beyond two years, it’s usually going to be worth purchasing the asset. But if your perspective is to stay in a shorter term, the account reverses“, says Professor Castro.

He remembers, however, that in the case of younger people, who have accumulated little money and therefore probably have to finance, it may be better to sign a vehicle for a shorter period.

Another account that needs to be taken into account, according to Professor Fowler, from Insper, is how much is spent on gasoline and maintenance monthly.

Often, it may make more financial sense to use apps like Uber or 99 or even rent cars on a very short notice, as Turbi offers.

Through this app, consumers can rent a car (and take it out and return it to a registered parking lot) and pay by the hour. Turbi also offers monthly rents with gasoline included.

rent — Photo: Getty Images