All You Need to Know About Car Subscriptions

Posted on: Apr 6, 2023 | | Written by:

All You Need to Know About Car Subscriptions

Published on April 5, 2023. EST READ TIME: 4 minutes

Driving your own car has many benefits. From fetching you greater independence to allowing you to plan your routes more flexibly, having your own vehicle has several advantages. However, with inflation, a good car these days costs a lot of money, and this is why car subscriptions are becoming popular. What exactly is a car subscription, and do you need to buy and renew car insurance for this? Let’s find out in the article below.

Advantages of Car Subscription over Car Buying:

As stated, there are several advantages of a car subscription over buying a vehicle. Here are some of them:

1. No down payment:

If you have been saving a lot of money to buy your own vehicle, you may go for a new purchase. However, most people don't have that much money saved up and often resort to a car loan to purchase a new vehicle. When you subscribe to a car, you save this hassle. There is no concept of a down payment in car subscriptions. You just pay a flat rental amount, which in most cases, is very affordable and economical. You can simply pay the amount and get the car. This helps you to get the vehicle even when you don't have a lot of cash at your disposal and proves to be highly beneficial.

2. Insurance and taxes covered:

The monthly subscription fee that you pay is inclusive of insurance and taxes. You get added insurance features such as roadside assistance and zero depreciation car insurance coverage. Owning a car is a big responsibility because you have to make timely payments for insurance, taxes, etc., and people often forget to do so, leading to fines and penalties. With the subscriptions, all such hassles are taken care of, and all you have to do is drive your car while the subscription company takes care of the other payments.

3. Simple process:

Buying a car is quite a long and tedious process. Apart from the lengthy paperwork, financing options, etc., these days, you are also put on a long waiting period after you book your vehicle. This makes it difficult for you to get the car and drive it. However, when you subscribe, you get the vehicle at a much quicker pace. The process is also very simple and fast. You just need to choose the model, fill out a few basic forms and make the payment. Once that is done, you get the keys to your car and are on your way. And after that, you simply drive your car without having to buy or renew car insurance as the subscription service takes care of all the insurance needs on your behalf.

4. Option to try out models:

If you are someone who loves exploring and driving new car models, the car subscription service is the ideal solution for you. You can subscribe to a car for a minimum tenure of about six months. This allows you to change the vehicle often and drive a variety of cars over a period of time. When you buy a car, you are stuck with the same model for years. Hence, if you love variety, definitely explore car subscription services.

5. Easy to move:

If you have a transferable job, going for a car subscription service is ideal. If you have your own vehicle, you will have the registration plate of a particular state. When you take the car to another state, you have to pay extra taxes or make a large payment to get the registration plate changed. Surpass these inconvenient and costly processes and subscribe to a car when you move to a new location. Enjoy the benefits of having your own car without having to worry about the expensive processes.

These are some of the best benefits you get when you opt for a car subscription facility, so do check out these services at once.

The Future of Car Subscriptions:

While the concept of car subscriptions is still quite new in India, it is definitely set to grow. Currently, there are only a handful of companies offering this service, but the response from the customers has been quite positive. Since the service is inclusive of all costs, including the all-important motor insurance costs, people look towards it as a one-stop solution for all their motor needs. The car subscription services are available in most of the leading Indian cities and the smaller towns are also expected to get them soon. Therefore, it can safely be said that the future of car subscriptions in India is quite bright and positive.

Challenges for Car Subscription Services:

However, there are some challenges that are faced in the car subscription market. They include:

1. Expensive in the long run:

A car subscription facility is best suited for the short run. If you wish to have the car for a few years, then investing in your own vehicle can be a more economical option. For example, the cost of a Maruti Suzuki Swift model is about Rs 5.5 lakhs. If you subscribe to the same model for a period of about four years, you will end up paying about Rs 7 lakhs in subscription (around Rs 15,000 per month). Hence, if you want to drive the same car for some years, consider buying it.

2. Customisations not available:

The cars you take on a subscription basis cannot be modified in any way. This is something you have to be very mindful of. The subscription service is usually quite strict about the appearance and upkeep of the car, and they expect you to keep the car as carefully as possible. If you like customising vehicles, then the subscription services may not be suitable for you.

3. Not feasible for short periods:

A car subscription service is usually offered for a minimum period of six months. So, if you want to rent a car for a shorter duration, this option may not work out for you. Then, you will have to go for a car rental service.

While these are some drawbacks, they are quite minor and, over time, will surely improve. If you are serious about a car subscription, weigh these demerits against the advantages and see if it is feasible for you. If yes, then opt for a car subscription service right away.

Conclusion

As you can clearly see from the points mentioned above, there are some great advantages that you get when you subscribe to a car. This is a fairly new concept in India, but many people are warming up to it. So if you want your hands on a new vehicle but don't want to spend a lot of money on it, explore the subscription options. You would find most of the leading car models listed for a subscription. Pay the amount and drive the car as your own vehicle without having to worry about the maintenance costs or having to renew car insurance.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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