KEY HIGHLIGHTS
- Pros and Cons of car subscription
- Buy a car or subscribe to a car?
- Companies that offer car subscriptions
Purchasing a car requires quite a lot of investment financially. Besides the amount of paperwork required is somewhat frustrating for a new vehicle owner. Moreover, Service costs, lack of parking, and the risk of theft are also a matter of concern these days. Many people claim that cab services have reduced the need for personal vehicles. Unfortunately, This is not true because of the fact that cab services are known to surge prices dramatically daily, regardless of rush hour or bad weather. My 5km UberGo trip to the office from home costs Rs. 160 which equals Rs. 320 for a round trip or 7000 per month. (without surge pricing)
Furthermore, this amount can easily cross 15000 or more per month when the monsoon starts in India. So, Should you pay 15000 rs every month or buy a car? Purchasing even the most affordable model will cost you a minimum of 4.5 Lakhs, excluding fuel and service costs. Nevertheless, do not abandon all hope yet...because this is where Car Subscription comes in.
What is A Car Subscription?
A car Subscription is a convenient way to rent a car for 12 months or more as per your requirements. Car company generally covers insurance, maintenance, and all the necessary paperwork. It's just like a Netflix subscription, where you have to pay a yearly amount based on the car you choose.
What Are The Benefits Of A Car Subscription?
- Upgradability- You can opt for a new upgrade of your existing car for a little or no premium every year.
- Flexibility- Car subscription is available for 12, 24, 36, 48, or 60 months tenure. Conversely, you can pay by the number of kilometers you intend to cover annually for example- 10000, 15000, 20000 per year, etc.
- Substantial savings- You do not have to pay lakhs of rupees to get your dream car. Also, any subsequent charges like insurance registration and maintenance, etc are paid by the company.
What are some Disadvantages Of Car Subscription?
Mileage Cap- Once you have breached your kilometers limit, you will be charged a small fee for any additional distance you cover.
Fuel Charges - You still have to pay for petrol.
Only makes sense for the short term- Subscribing for a car does not make financial sense in the long run. For example - If you get a subscription for a Maruti WagonR LXi for 5 years with a 15000km per year cap. It would cost you around Rs 14,396 per month which equals Rs 8,63,760!!! for 5 years. Conversely, if you purchase a WagonR LXi you would have to pay Rs 5.5 lakhs.
Is Car Subscription Ideal For Me?
Financially, according to the math above a car subscription only makes sense for a very short period. This type of car ownership works well if you have someone to share the expense with and have no intention of keeping a car for more than 1 or 2 years. Also, if you do not want to pay the high cost of owning the car but have access to a steady source of income, a car subscription is perhaps the best way forward for you.
Is Car Subscription Available In India?
Yes, reputed companies like Maruti Suzuki, Mahindra, and Hyundai have bespoke subscription programs for most of their cars. All you need to do is complete some basic paperwork, choose your preferred model, set the tenure, and pay the monthly fees. Consequently, The car is delivered to your doorstep in under 2 weeks.
VERDICT - A car Subscription is a blessing for people who cannot afford to buy a car for a short-term period. The subscribers will get flexibility in terms of the duration of the subscription and an option to upgrade the car when a new model arrives. On the contrary, mileage caps and fuel charges are the factors you need to consider carefully before buying a car subscription. Also, you must join our Whatsapp Group Community of petrolheads to find out more exciting stuff about the Auto world.
Also read, Top 10 Off-Road Bikes That You Can Buy In 2023 (91wheels.com)
