Want to buy a car? DON'T! Get your dream automobile this way; 5 top reasons why
Buying a car is gradually fading into history as the millennials and Gen Z now prefer easy accessibility as well as easy way to get rid of it too.
Ownership is gradually fading into history as the millennials and the Gen Z now prefer easy accessibility. As anyone who is not living under a rock would have noticed, youngsters today are riding high on simply subscribing to services instead of owning them. Downloading movies or music is passé, now that we have so many online streaming and subscription platforms.
Speaking on the matter Greg Moran, Co-founder & CEO at Zoomcar said, "Even furniture for the home or office spaces can simply be subscribed to instead of purchasing the same. Thus, it hardly comes as surprise when we are witnessing a spurt in the number of Indians, especially the youth, opting for car subscriptions instead of complete ownership."
See Zee Business Live TV streaming below:
Asked about the reason that establishes that car subscription is better than buying a car in today's auto market, Greg Morgan suggested car enthusiasts delve deeper into the issue and figure it out. He has helpfully provided 5 reasons for it:
1] A car when you need it: Haven’t we had countless instances where a car once bought simply rusted in the garage? Car subscriptions, however, have you covered whenever the need for a car arises for shorter durations. Available for different time periods, ranging from a minimum of 3 months and going up to three years, car rentals ensure that users are able to cover their wide-ranging needs, without breaking into a sweat. As the subscription will only last for the period that you need it, there will be no need for you to go for hefty loans or other costs for keeping the car in the garage.
2] Have your own car, instantly: Anyone who has bought a car would swear by how long and arduous the process can be, right from selecting the model, test drives, registrations, tedious paperwork, negotiating the best terms and more. However, car subscriptions offer an easy escape from the ordeal, with various service providers offering a car within 48 hours of booking.
3] Say goodbye to down payments: Ever noticed how one’s preferred car always seem to fall out of the budget? In order to compensate, one ends up opting for car loans, which also require a lump sum to be paid as a down payment. And while that in itself is a financial constraint, requiring someone to dig a hole in the savings, the down payments are followed by EMIs charging a rate of interest and swelling the total cost of owning a vehicle by a lakh or two. Car subscriptions, needless to mention, offer an easy escape from spiraling down that rabbit hole, allowing users to not be deterred by upfront payments or inflated EMIs in renting their favourite cars.
4] No added costs like maintenance, insurance etc: Owning a new car comes with attached baggage, in the form of maintenance and servicing costs. In addition to causing inconvenience, these tasks only add to the total cost of ownership. However, such strings are not attached to car subscriptions. The service providers take care of the maintenance and servicing, letting you simply zip pass through the cities.
Highlighting the insurance premium waiver and other benefits the Zoomcar CEO said, "The need for car owners to guard their prized possessions at all times drive them to opt for insurance plans that are not easy on the pocket. For instance, Zero Depreciation Insurance premium for a car worth 8 lakhs would amount to upwards of 25,000. Add to this the hassle of abiding by the clauses and compliance norms of insurance companies. Car subscriptions, on the other hand, don’t come with such premium costs. While people may have to cover damages, it amounts to a lot less, with an upper cap of Rs 10,000, and the security deposit is totally refundable in case of no damages."
5] Change the car, whenever you want: Purchasing a new car translates into a long-term commitment for at least a few years. However, with car subscriptions, one can easily try out different variants, without having to necessarily stick by a single car. Book your subscriptions ahead of time to get a model of your preference; furthermore, change the car whenever you feel like, simply by terminating the current subscription and opting for another.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.