Although the subscription model is relatively new in India, it does have potential considering the surging cost of vehicle ownership in India. There are a number of pros and cons to consider when deciding whether to subscribe to a car or buy a new car.
Pros of car subscription
No upfront costs – You don’t need to make a down payment or take out a loan to subscribe to a car.
All-inclusive pricing – Your monthly subscription fee typically includes all of the costs associated with owning a car, such as insurance, maintenance, and repairs.
Flexibility – You can typically choose the length of your subscription and the type of car you want to drive.
Convenience – Car subscription services take care of all of the hassle of owning a car, such as getting it serviced and insured.
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Cons of car subscription
Monthly subscription fees can add up – Car subscription fees can sometimes be higher than the monthly payments on a car loan, especially if you subscribe to a long-term subscription or a high-end car.
Mileage caps – Many car subscription services have mileage caps, and you may have to pay additional fees if you exceed your mileage limit.
Customizations – You may not be able to customize your car to the same extent as if you owned it.
Pros and cons of buying a new car
When you buy a new car, you own it outright. This means you can customize it to your liking, drive it as much as you want, and sell it when you’re ready. You don’t have to worry about exceeding a mileage limit when you own your own car.
However, there are several cons as well, such as, buying a new car can be expensive, especially if you don’t have a trade-in. You’ll need to make a down payment and take out a loan to finance the purchase. Further, the overtime depreciation of the car value and maintenance and repair costs will be yours to bear with.