Car subscription vs leasing: which is better?
The automobile industry has always been innovative. Whether it’s in technological or service aspects, we can see interesting innovations every once in a while. The innovations are made by focusing on making the whole experience better. One of those was car leasing. You own a car for a couple of years by paying a monthly rental. You are only required to give the car back by the end of the contract. It’s a simple but effective way.
Car leasing in India has grown to a great extent. The growing awareness about the benefits and profitability has made it a popular mobility solution. It is considered the best mobility solution by motorists. You simply pay a monthly rental for a fixed amount of time that is mutually agreed upon. The benefits of it include various things like freedom from the worry about maintenance, servicing, and insurance. No down payment or other expenses you usually face from a purchase.
But a new way of using cars is now introduced. Now you can subscribe to cars. Consumers are provided real flexibility with car subscription services. Depending on the package and the car company, subscribers have the option to rent a vehicle that suits their needs and even change the vehicle if they want to. The only thing that needs to be noted is that the pay changes according to the car they subscribe to.
Subscription is an attractive choice for people who travel all over the country. Whether it’s for a job or personal purpose, taking their car all over the country will be tiring and also expensive. On the other hand, if they are people who have to stay at these various places for a while before moving again, leasing will not be that different either. Say if they are in Pune Simply need to google ‘car leasing in Pune’ to get a car, car leasing in Hyderabad’ if they are going to Hyderabad, and so on.
Most leasing companies put a minimum of one year to lease. But ALD Automotive’s ALD Ugo plan lets users easily exit from 6 months onwards. It is a great opportunity if they are required to stay 6 months or so.
Subscription will be useful for people who want to ride a different car at short intervals. It has not emerged as a threat to leasing till now since the number of consumers who seek that short-term commitment is a few. But leasing companies are combating this potential conflict by introducing new innovative products and services.
Leasing is steadily growing and dominating the Indian market. The subscription model has the potential to hold a strong position alongside leasing. If the user desires to use a different car every week they can do so without going through the hassle of buying. If the consumers tend to travel from city to city they can easily subscribe to a car in each city and use it as long as they are there. There’s no worry about leaving it behind when you leave. No hassles about giving it to someone to look after. Nothing! You can simply give it back and get another one the next time you are in the city. This is beneficial for a crowd with specific needs.
Coming to how manufacturers see this, there are several car manufacturers that offer subscriptions to cars. If you are a frequent traveler, leasing would not make sense because it is usually a long-term commitment. The manufacturers seem to have considered these factors. Because a lot of manufacturers in this country offer it now.
The subscription model can benefit a segment of people who cannot hold long-term commitments. Even those who like to upgrade to better cars within short periods can find this helpful. The range of cars also varies from leasing and rental. The customer will be able to select from a wider range of vehicles with a subscription.
Leasing and subscription are both excellent mobility solutions. They are best suited for you if you know what your needs are. It may not seem like both are different. But you can benefit more if you know what you are getting into. So make sure you make the right choice!