Buying a car is a significant purchase people make their lives. It involves a substantial investment and demands the buyer to be completely invested in the entire process of procuring a car. From discovering the right make, model and design, to carefully shortlisting the features and arranging the finances – there are many factors that come into play.
Car buying is a journey that begins with discovery, moves ahead with purchasing and continues with the life-cycle management (maintenance, car insurance, pollution check, etc.) until a buyer decides to give it away or upgrade to a new one. In its entirety, buying a car is about the complete ownership experience, and not just paying and driving away in a set of fancy four wheels.
Basis the kind of experience a buyer intends to gain out of car ownership, today, he has three options to choose from – Buying, Leasing, and Subscription – when looking to buy a car in India. So, how does one make the right pick out of the three? By identifying the key benefits of each of these choices and then aligning them with one’s personal preferences.
Let’s explore this three-way junction:
Car Buying In India
Buying a car is a conventional and still majorly prevalent mode of owning a car in India. The process of car buying comprises the following steps – Listing the requirements, finalizing the budget, research, visiting a showroom, taking a test drive, reading reviews, getting a quote, arranging the finance, negotiating or checking for offers, and finally sealing the deal. It sounds laborious, but it’s worth the effort in the end. Since nothing beats the strong sense of ownership that comes with buying your own vehicle. Plus, buying has its perks. It offers a full warranty, which helps reduce the maintenance cost during the warranty period. One has the liberty to modify the car as per individual preference. When buying a car the insurance premium is likely to be lower as compared to leasing. It also provides the freedom to sell the car anytime. In a nutshell, buying is ideal for those who want to own an asset and call it theirs!
Car Leasing In India
Leasing gives the option to immediately own the car without putting in too much money. The buyer gets to keep the car for as long as he’d like at a fixed monthly fee. Mostly, there’s no downpayment required in case of leasing a car. Getting a car on lease is subject to strict mileage limits which may vary from 12000 to 15000 per year. It may even lower the sales tax, depending on the tax policies in a specific location. Trading-in a leased car is simple. At the end of the lease term, one can choose to return the car or decide to buy it.
Car Subscription In India
Ever thought cars could be owned as a service? It’s possible now! Even though it’s a radically new way of buying a car, it’s slowly but surely emerging as a trend in India. Through subscription one can enjoy car ownership without buying it. A car subscription is ideal for people looking for instant access over long-term ownership. The subscription tenure can start at a minimum of 6 months and can be extended up to 60 months. It is a fairly flexible option compared to leasing, where the minimum lock-in period is generally 3 years. The benefits of a subscription to the customers include – Zero down payment, zero registration hassles, minimal paperwork, a fixed monthly fee (which is mostly inclusive of maintenance cost and car insurance), and doorstep delivery. At the end of the subscription tenure, the car can either be returned or the subscription can be renewed. It’s that easy! No risk on re-sale value of the car. Click to know more