Now, Subscribe Your Car!

Consumers Find Greater Value, Convenience And Choices In Innovative Car Subscription Models.

- ASTHA ORIEL

TUSHAR SHARMA, a 29-year-old executive, has been driving a hatchback for seven years. Over the last year he has been planning to upgrade to an SUV, but down payment and high EMIS pose a problem. It was then that he discovered buyers can actually subscribe to a car, as opposed to buying it.

How does car subscription work? It's about vehicle-as-a-service. Here you experience, not own the car. Other benefits include lower cost of ownership and flexibility to change cars frequently.

The customer gets the flexible, hassle-free ‘vehicle-as-a-service’ by paying a specific amount (upwards of ₹20,000 for a premium category of car) to the subscription company every month. He doesn’t need to bother about anything except fuel and monthly subscription charge. Down payment, insurance, taxes and regular maintenance are all borne by the subscription company. In case the customer exceeds a specific number of kilometres, he/ she needs to pay a differential amount at the end of the subscription tenure. Most companies offer car subscriptions for 12, 24, 36 and 48 months. In India, the most popular subscription model is 24 months for 15,000 km.

WHAT IS A SUBSCRIPTION MODEL?

• A tripartite agreement between the car subscription company, automobile manufacturers/dealers and the customer.

• The customer gets the vehicle-as-aservice by paying a particular amount to the subscription firm every month.

• Subscription includes services such as insurance, maintenance and car services; rental amount depends on kilometres.

• Most companies offer subscriptions for 12, 24, 36 & 48 months.

• In India, the most popular subscription model is 24 months for 15,000 km.