[aniyo]

I made a calulation error above. Creta is approx 16.6 L if we take the insurance from outside.
So if we pay 9L upfront and take a loan of 7.6L total payable at end of loan period is Rs.18,70,000 as against 22,20,000 for the lease policy.

Also I checked, if the car is taken in company name we get the benefit of Tax but not if we take on our name. this is frankly pointless, if I had that option I will go with company tied leasing partner.

No foreclosure charges I confirmed this.

[SmartCat]

No need to open Excel sheet to make calculations. You can now rent /subscribe to cars, smartphones and furniture but these are never meant to be money-saving options. When you opt for such schemes, it allows you to have a totally different lifestyle - new smartphone or new car or new furniture every year, with ZERO hassles. That is the sole USP of subscription offers. Opting for such schemes is a lifestyle decision, and not a financial decision.

When you buy a car, the only overhead is its maintenance.

But when Revv (Hyundai) buys a car and gives it out on rent, they have to take care of:

1) Car maintenance
2) Salaries of executives working at Revv (car subscription department)
3) Advertising and marketing expenses (car subscription department)
4) Cost of keeping inventory of cars (100% of cars will not generate income all the time)
5) Return on investment made in this business

(1), (2), (3), (4) and (5) has to be recovered from you - the paying customer.

[aniyo]

Originally Posted by SmartCat

No need to open Excel sheet to make calculations. You can now rent /subscribe to cars, smartphones and furniture but these are never meant to be money-saving options. When you opt for such schemes, it allows you to have a totally different lifestyle - new smartphone or new car or new furniture every year, with ZERO hassles. That is the sole USP of subscription offers. Opting for such schemes is a lifestyle decision, and not a financial decision.

That's actually true. Under company car lease we get a much better deal. I think I will give this a pass and stick to my original choice of Nexon/ Ecosport

[FrodoOfTheShire]

Originally Posted by SmartCat

Opting for such schemes is a lifestyle decision, and not a financial decision.

...has to be recovered from you - the paying customer.

Perfectly summed up. This is what makes me averse to even avail any kind of credit facility like loans or credit cards. Anything that offers convenience will be charged from the customers themselves. Companies are not here to make losses and pamper the customers for free. Thinking otherwise is folly!

[GTO]

This is basically leasing dressed up in a fancy bowtie.

Just keep in mind that the calculations completely change if you're a businessman. Bill it to your company and you immediately get tax benefits equivalent to your tax bracket. So it's 25 - 30% cheaper for all businesses.

[Guna]

Originally Posted by GTO

This is basically leasing dressed up in a fancy bowtie.

Just keep in mind that the calculations completely change if you're a businessman. Bill it to your company and you immediately get tax benefits equivalent to your tax bracket. So it's 25 - 30% cheaper for all businesses.

But I guess in case of a subscription, one would loose out on the benefit of writing off the depreciation as 'expense/loss' which one would get in case of a purchase.

[GTO]

Originally Posted by Guna

But I guess in case of a subscription, one would loose out on the benefit of writing off the depreciation as 'expense/loss' which one would get in case of a purchase.

Absolutely! But the net benefit of depreciation is no more than what you get in a lease / subscription. Plus, the lease is the entire benefit in the current financial year (not spread over multiple years like depreciation), and the business has to put no down payment...money which can be used to run the business.

[rrsteer]

Originally Posted by SmartCat

When you buy a car, the only overhead is its maintenance.

But when Revv (Hyundai) buys a car and gives it out on rent, they have to take care of:

.

While I agree the model probably doesn’t work in India, but what has been stated is not a fair comparison. Do note, that when a customer buys a car it also implicitly includes the dealer margin.

[Guite]

Very interesting indeed. I have not gone through the details but I think it is ideal for people who want short term ownership of a car. It also offers opportunity of ‘owning’ variety of car models over a short period of time.

[pacman2881]

If the car is registered as a commercial vehicle, will it also have the 80kmph speed limit?

That would make this option even more undesirable.

[JS Kwt]

Mahindra XUV500, Scorpio and Marazzo now available for subscription:
Own them without Buying them

Revv, a Lease brand in India currently offers three vehicles from Mahindra – Scorpio, Marazzo and the XUV 500. The lease plans, which the brand says is a monthly subscription plan ranges from a minimum of 12 months to a maximum of 48 months. A brand new car is assured with the plans. If the customer wants to choose from used car plans, Revv offers vehicles that are less than a year old.


Mahindra XUV 500

The Mahindra XUV 500 W5 variant is available for leasing with an upfront payment of Rs. 71,565 and monthly charges of Rs 35,590 for the first 12 months and Rs 29,190 post 12 months.

Mahindra Scorpio

For the S3 2WD variant of the Scorpio, one needs to pay Rs 57,000 upfront and a monthly charge of Rs 30,290 for the first 12 months. Post that, the monthly subscription fee comes down to Rs 25,090 each month till 48th month.


Mahindra Marazzo

For the Mahindra Marazzo a first year upfront payment of Rs. 62,415 is needed to be made as first-year insurance. For the first 12 months, the monthly fee is Rs. 32,890 and post that till the 48th month, one needs to pay Rs. 27,290.

All the mentioned details are for 48 months EMI and subscription. After the end of 48 months, the buyer will need to either give up the vehicle and get a new subscription or will have to pay a fee to retain the vehicle.

Should you get it?
For more expensive variants and vehicles, the leasing turns out to be more beneficial.

It should be noted that the leasing vehicles get the commercial numberplates and not the regular white background numberplates that we get to see on the private vehicles. Such commercial numberplates need to pay state taxes when they cross the state borders.

Source

[KMT]

Given that they get to claim depreciation on the vehicle, I am surprised that the subscription price isnt considerably lower.

[Eddy]

The commercial number plate is a real downer, at least for Delhi-Gurgaon commuters. No go.

[aravind.anand]

If anyone has researched this option deeper, can you please try to help me understand what happens in special cases like I have mentioned here please?

- What happens if there is an interruption during the tenure? Like say floods or any other similar natural calamity affecting the car, thus requiring extensive repair maintenance or worst case a total loss?

Are all maintenance costs covered? Including non scheduled ones like a drive shaft breaking away or timing belt snapping or AC compressor failure or battery failure during the course of the subscription?

Or say, in the case of car theft, who takes the hit?

Or what if the person wants to stop subscribing after 3 years? Or wants to upgrade to a car during the tenure?