Car subscription vs buying new car: Pros and cons explained

Automobile subscription plans are a comparatively new approach to personal a automotive. In easier phrases, it’s like a OTT platform subscription whereby you buy a month-to-month pack and pay for the companies every month. As a substitute of shopping for a automotive and paying for it upfront, you subscribe to a service and pay a month-to-month price. This price sometimes consists of all the prices related to proudly owning a automotive, resembling insurance coverage, upkeep, and repairs.
Though the subscription mannequin is comparatively new in India, it does have potential contemplating the surging value of auto possession in India. There are a variety of execs and cons to contemplate when deciding whether or not to subscribe to a automotive or purchase a new automotive.
Execs of automotive subscription
No upfront prices – You don’t have to make a down cost or take out a mortgage to subscribe to a automotive.
All-inclusive pricing – Your month-to-month subscription price sometimes consists of all the prices related to proudly owning a automotive, resembling insurance coverage, upkeep, and repairs.
Flexibility – You’ll be able to sometimes select the size of your subscription and the kind of automotive you need to drive.
Comfort – Automobile subscription companies maintain all the problem of proudly owning a automotive, resembling getting it serviced and insured.

Cons of automotive subscription
Month-to-month subscription charges can add up – Automobile subscription charges can typically be increased than the month-to-month funds on a automotive mortgage, particularly should you subscribe to a long-term subscription or a high-end automotive.
Mileage caps – Many automotive subscription companies have mileage caps, and you will have to pay further charges should you exceed your mileage restrict.
Customizations – It’s possible you’ll not be capable of customise your automotive to the identical extent as should you owned it.
Execs and cons of shopping for a brand new automotive
While you purchase a brand new automotive, you personal it outright. This implies you possibly can customise it to your liking, drive it as a lot as you need, and promote it while you’re prepared. You don’t have to fret about exceeding a mileage restrict while you personal your individual automotive.
Nevertheless, there are a number of cons as effectively, resembling, shopping for a brand new automotive may be costly, particularly should you don’t have a trade-in. You’ll have to make a down cost and take out a mortgage to finance the acquisition. Additional, the extra time depreciation of the automotive worth and upkeep and restore prices might be yours to bear with.