Nowadays after 2 years of a covid pandemic, the preference of the customers have also changed and even there are changes brought in the lifestyle, and as a result for the daily commute people now prefer purchasing a car but due to shortage of chips and a waiting period of new cars, they go for second-hand cars. Due to the increase in second-hand cars sales, there are various competitors and also a new segment has been introduced the subscription model. so in this article, we are going to know more about it.
let us first understand what is a subscription-based car model. If you want to drive a car for a longer time, so you will either purchase the car or may use an existing car or borrow from relatives and if you don’t have the above options available, you may take it on a lease, well taking on the lease is a very old concept but that was not so effective and was done on the very small scale. It was usually done by the tourist companies but the cars were Tpermit and sometimes driver was compulsory thereby increasing the drivers cost too and as per https://www.investopedia.com/, a lease, requires a two- to four-year commitment but the subscription-based car buying model is a step ahead and can be taken for one month, six months, or a year. and also you get the benefit of swapping out your car for a new one every month.
By using this type of model for the purchase of a car, you also don’t lose money cause if you want to return the car, you can easily do so and you don’t need to worry about the depreciated value as in the subscription-based car model vehicle can be exchanged for a monthly fee. And not only these, if you are not using the cars which you have purchased, can be listed on the subscription sites such as zoom car and cover the cost for the same. you can also save up to 30% based on the tax slab.
Coming back to the main question is this type of model useful, then the answer to the same is yes, it is useful and practical because in certain situations like you have booked a new car which has a long waiting period and for the time being you don’t have any car, then you can subscribe and if the same car that you have booked in new, can be used thereby helping you understand the car and if you wish to you can change the new car as per your experience. As a result leasing, a car would be a wiser choice in this modern-day age. It also provides advantages, like flexible choices to renew your lease with the latest car every time your contract is up for renewal.
Although the subscription-based car model has slowly started emerging now in India, but in some of the countries this concept has emerged way back and big companies like BMW, Mercedes Benz, Porsche, Ford, Volvo, Cadillac, Jeep, and more have introduced their own subscription method which you can check it out at https://www.edmunds.com/.
