KEY HIGHLIGHTS
- A smart car financing option that offers guaranteed resale value.
- Monthly EMI is comparatively lower in Buyback than in a regular loan.
- Popular mass-market brands like MG and Honda provide this program.
Buying a car has always been a milestone decision in an Indian household, whether it's a small vehicle or a large SUV, or whether it's your 1st or 7th car purchase. However, this decision is a very calculated one, and in recent times, it has become more challenging as people are increasingly concerned about the depreciation factor and the burden it may place on their pockets.
To counter this, premium car makers have introduced an assured buyback program, which not only offers lucrative financing options but also opens the doors for customers to purchase premium vehicles. It's a fresh new topic that everyone should be aware of, so follow me till the end as I explain it in the most easy-to-understand manner. Also, do join our 91Wheels Whatsapp Channel to never miss out on automotive updates.
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What Is Buyback?
To put it simply, Buyback is a guarantee from the brand to buy your vehicle back at a set price in the future. If you buy a vehicle with a Buyback program, you can choose how long you want to keep the car, and the automaker will give you a guaranteed resale value for that period. This price won't change based on market trends or any small changes in the automobile industry. However, there are some terms and conditions.
Another perk of this program is that if you take a loan and set up EMIs, the interest rate is comparatively low. You can also set a limit on how long you want to pay through EMIs, after which you can pay the full amount. Overall, it's a sound investment decision that removes the anxiety of depreciating car values. Once the program ends, customers will have the opportunity to bring home a new model from the same brand, essentially an upgrade.
Example - Suppose you're buying a brand-new BMW 3 Series M340i, which costs Rs 74.90 lakh ex-showroom and roughly Rs 86 lakh on-road in Delhi. With the Buyback or BMW 360 Finance Plan, you decide to lease the vehicle for 5 years and pay a deposit amount. The remaining payment can be made through EMIs, which come with relatively low interest rates. The best part is that the automaker will give you a guaranteed future resale value for the car, let's say Rs 35 lakh. After 5 years, you'll receive the final resale value and have the option to keep the car, return it to BMW, or upgrade to a bigger model. By opting for this program, you'll have a guaranteed resale price (Rs 35 lakh) that offers flexibility and peace of mind. In the most easy way that transaltes to you know you'll get an fixed price.
Which manufacturers are offering it?
This is essentially provided by a premium brand, but for mass-marketer cars, Honda (Assured Buyback Program) and MG (My MG Shield) are the first one to step in. For luxury cars, BMW have (BMW 360 Finance Plan), Mercedes Benz have (Star Agility +) and Audi has also come up with this, but is limited for e-tron and e-tron sportback. At last, this is a great option to own a dream car for yourself which you always wanted too.
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Verdict
The Buyback program is a fantastic finance option, which is truly a gateway for customers to buy their dream car and throw away the anxiety of depreciation costs. In terms of finance options, BMW has the best finance deals and also offers up to 50% assured Buyback. Also, a big shout-out to Honda and MG for coming up with this in the mass-market segment, as with this program you can really save up to lakhs in the long term. To conclude, I hope this helps you clear any confusion you had about the Buyback program, and for more such informative content, follow 91Wheels.
