Car Subscription Model as a Financial Management Tool

Are you thinking of buying a new car but don’t have enough budget? What if we tell you that you can drive away with your favourite car without actually buying it?  Surprised? Well, you can subscribe to a car rather than buying it and drive around like you own it. It is a much cost-effective alternative to purchasing a new car and it makes perfect financial sense.

Today, you can easily subscribe to any car you want through car subscription platform like Quiklyz. The subscription model is a hassle-free and economical way to enjoy any asset, like a car. Hence, nowadays, many individuals choose subscription as it is a more efficient financial management tool.

Owning a new car that suits the family’s requirements may require a significant cost and upfront investment. Besides, over the years, you may also incur other expenses on repairs, maintenance, insurance, and taxes. With so many costs involved, you may have to either compromise on the type of car you want to purchase, or you may spend more than your actual capacity, which would disrupt your financial balance.

Understanding that expenses incurred on a car are not an investment

Whether you are buying a new or second-hand car, you must know that any cost you incur on it is not an investment. A car is an asset whose value depreciates over time, and its value reduces every year.

However, a car subscription model is better than having a second-hand car as you would spend a much lower amount on the subscription fees than you would shell out on buying an old car. In addition, when choosing a car subscription, you have the total freedom to choose from a wide range of vehicles, tenure for which you would like to subscribe the car, that fits within your budget and much more.

Benefits of choosing a car subscription

When you buy a new or used car, you may get a car loan or use your hard-earned savings to purchase the asset, right? This means you would spend a significant amount upfront. If you get a loan, you must repay the amount along with interest, which further increases the overall vehicle cost. However, when you subscribe to a car from Quiklyz, you can get your hands on any vehicle model you want at a lower price without paying interest or a down payment.

This type of arrangement is very new in the Indian context. However, because of the growing popularity of subscription models and the increasing preference of customers to subscribe for a car rather than purchase it, many automakers in India have collaborated with various platforms to offer their car models on a subscription basis.

Another significant benefit of a car subscription model is that you have 100% transparency, as the entire cost for a particular subscription period is decided upfront and communicated to you. Also, most models cover general maintenance and repair costs. So, there is zero risk of hidden charges.

Final Word

The car subscription business model mainly meets the needs of a wide range of users who are ready to pay a monthly fee instead of and EMI along with a hefty down payment upfront. Besides, it helps the customers save a significant amount and gives them flexibility in choosing the car they want and the tenure for which they wish to use it.

While the car subscription market is huge in countries like the US and UK, Indian customers are slowly but steadily shifting towards choosing car subscriptions rather than buying a new one.

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