Buying A Car? Opt For Subscription Instead!

When it comes to owning a car, the first and sometimes the only option that comes to mind is that of purchasing it through a vehicle loan that offers the advantage of easy monthly instalments. But now there is an alternative – the subscription model in which case you use the car for a fixed fee every month. What works out better? Read ahead to know

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When it comes to buying a car, all of us wish to possess one that can cater to our needs, be comfortable and not be too heavy on the wallet. Thus, most people prefer to buy a car through a vehicle loan. A majority of lenders provide 80 per cent of finance on the on-road price while some go up to 90 per cent on the ex-showroom price. There have been instances when even 100 per cent finance has been provided to buyers with sound financial credentials. The advantage is that such a loan can be paid off in easy monthly instalments. But there is another way of using a car as its owner – the subscription model – which is gaining traction these days. So how does it work?

A subscription model for a car works on similar lines to subscribing for a magazine or a direct-to-home (DTH) connection. When you subscribe to a car, you need to pay a fee every month or for a pre-decided period in order to use the car during the specified subscription period. Therefore, a subscription service allows an individual to drive home a vehicle of his choice for a monthly fee. This gives him full access to the vehicle without having to make any down payment. In fact, subscribers only need to pay an all-inclusive monthly fee that takes care of complete maintenance, insurance as well as roadside assistance. There is an option for the subscriber to opt out for maintenance. While Hyundai Motor Company started such a subscription scheme in March 2019, it was soon followed by Maruti Suzuki in September 2020.