Is a Car Subscription Service an Alternative to Car-buying or Leasing a car?
There are various ways in which you can have a car. Some people prefer buying a car and having it for the rest of their life, while others choose to take a car on a lease, and then there is a third category that chooses to subscribe to a car. Each of these options has some pros and cons. Let us see what they are and which one will be the best option for you.
A car subscription is a business model in which you can subscribe to a car and pay a monthly subscription fee to the company. If you are taking the service from Revv, you can choose a monthly car subscription or a yearly subscription. The flexible car subscription service from Revv will enable you to extend the subscription period or even return it before the expiration of the term. However, if you return the car before term, you may get asked to pay some money as a penalty. With a car subscription, you do not have to spend extra money on maintenance or insurance as it will be included in the monthly package.
Advantages of car subscription
1. No EMI and Down Payment:
To opt for a car subscription, there is any need to make a down payment or take a car loan. The only charges are the monthly or yearly car subscription fees.
2. No Maintenance or Insurance Claims:
As you take a car subscription, you don’t have to spend money on the maintenance of the car or for your insurance claims. These will be taken care of by the company itself.
3. Cost-saving:
Subscribing to a car can save you a lot of money. You do not have to make a huge down-payment and also there is no need to pay EMI. You just have to pay the charges for the days you use the car.
4. Safe and Secure:
You do not have to worry about the hassles of taking a cab. The safety and security issues are way better in a subscription car than a taxi or cab.
5. Hygienic:
When you subscribe to a car, you will be the only person using it for the duration. Therefore, you do not have to worry about the hygiene part.
Disadvantages of car subscription
1. Monthly Fees:
Car subscription in India will demand a monthly fee. You can get a car subscription only if you have a stable income.
2. Fees change with Car Models:
The monthly fee for car subscription changes with the model of the car. If you are going for a higher model, the charges will of course be higher.
What is car buying?
Car buying is one of the most common ways of getting a car. To buy a car, you have to make a down payment, which is at least one-fourth of the car’s ex-showroom price. If you do not want to take a loan for the car, you can pay the entire money at once. If you want to take a car loan to buy the car, you have to pay EMI. However, the car is going to be yours forever and you have to take care of its maintenance, your insurance claims, and even road tax.
Advantages of car buying
1. Safe and Secure:
When you buy a car, it is will be handled only by you. Therefore, you do not have to think about the safety of the car and driving. Since you will be driving it, you can maintain the speed limit you want.
2. Freedom from the cabs:
As compared to a taxi or a cab, you do not have to be dependent on the driver when you own a car. You are your boss, and you can take the routes that you think are right.
3. Hygienic:
One of the best things about owning a car is that you can be sure about the hygiene part. Especially, when a pandemic like Covid-19 is going on, you do not have to worry about the last passenger that used the car.
4. Long-term benefit:
Once your EMIs are over, you do not have to pay a lot of money on the car. Just some maintenance and you can use the car for the rest of your life.
Disadvantages of car buying
Financial constraint:
To buy the car, you need to have a lot of money or you may have to take a loan. In any case, it involves quite some money.
What is car leasing?
Car leasing is another way of having a car in which you pay a fixed amount of fees for a longer period and once the term is over, you return the car to the company. You can even buy the car later at a reduced price.
Advantages of car leasing
1. No repair cost:
The repairing cost of the car will be taken care of by the company.
2. Lower monthly fee:
You can take a car on a lease that you cannot afford to buy. The monthly payment even for a luxurious car is much lesser than its buying cost.
3. Choice of cars:
You can lease a car for 2 to 3 years and after that, you can take a new car on lease. This means you are free from using only one model of car for the entire life.
Disadvantages of car leasing
No flexibility of returning the car before the term.
These are three ways of enjoying the joy of car ownership. Although each of them has its advantages for most people, a car subscription is coming up as the most beneficial one. This way they can minimize their costs without having to commit to a single car for a long period. They also get the most amount of support from the subscription company.
