Don’t Pay an Arm and a Leg for Your Car? 5 Reasons Car Subscriptions Are Here to Stay
Car subscriptions are gaining a lot of popularity in this generation. If this model of business continues to grow at the current rate, in a few years, buying a car will be a thing of the past.
Why? Simply because of the list of facilities that it has to offer without actually owning the car. You just need to pay a certain amount of monthly fee that practically covers insurance, maintenance, and other costs. Apart from that, you only owe the fuel charges, rest is all on the owner!
Car subscriptions will soon be the primary business model of the automobile industry. Here’s why:
The money factor
Purchasing a car is not cheap in any way. On an average a minimum of 20% of the actual cost is required as a down payment. Most people need to save for a long period of time in order to purchase a car. And that’s not it. Once you buy a vehicle, it’s just the first rung of the ladder of expenditures. You need to have a permanent parking spot. The vehicle will need regular servicing. Proper documentation for the car is also pretty costly, and the list is never-ending.
A car subscription will save your wallet from these expenses. You need to make a safety deposit that will be refunded wholly to you at the end of the subscription cycle. Other than that, you only need to pay the monthly subscription fee. Abu Dhabi is populated with the multiple car subscription services. Do your research and make a wise choice when you opt for a car rental subscription in Abu Dhabi.
Share the car when idle
All of us want good returns on our investments, right? But purchasing a vehicle makes it impossible to do so. It’s a depreciating asset, that is, its value decreases over time. When not in use, it actually feels like a waste of money.
On the other hand, when you subscribe to a car, you never feel like your money is being wasted. When not in use by you, the car is used by some other subscribers. This saves you from the heartache of seeing a depreciating asset collecting dust in the backyard.
Owing to the hefty prices of purchasing them, the holding period for personal vehicles is quite high throughout the world. In India, it is an astonishing nine years, while in the US it is around 11.6 years. Imagine driving the same old car for eleven years when there are new models being rolled out practically every week. But people still need to hold on to their vehicles as they have paid a lot to buy it. As the car gets older, the costs for its maintenance soar.
Car subscription gives you the opportunity to steer clear of such worries. You are supposed to use a particular car only for the subscription period, which usually ranges from 6- 36 months.
After the subscription period ends, you can opt for any other model of your choice while renewing it. This saves you the trouble of being held down by the same old car you bought years ago.
It’s all digital!
The entire process of owning a car is analog in nature. From buying the car to acquiring all the necessary documents, the entire process is full of paperwork. In fact, it reeks of the pre-digital age. In addition to this, a lot of time needs to be invested in maintenance, servicing, and other related activities.
Using subscription services, you can do all of this with a tap of your finger. You do not need to personally take your car for servicing. The entire process is digitalized. It will save a lot of your time.
Easy to estimate monthly expenditure
The actual cost of owning a car is quite tricky to estimate. What if your tyres get punctured? Or you break the side mirror? Or if there’s a problem in the engine? You will need to pay for the repair of these damages as and when they pop up. Besides the sudden expenses, regular servicing is also necessary. All of this makes it very difficult to regulate the monthly cash flow of your household.
In case of a subscription, however, you need not worry about sudden expenditures. All you need to do is pay the monthly fee. The company will take care of the rest. Thus, with a fixed amount being spent every month, it will be a lot easier to manage your household’s monthly cash flow.
Now you know what to do!
With all of these reasons, I am sure car subscriptions are the next big thing in the automobile industry. (Infact, it already is) So, stop spending money on buying cars. Subscribe to one instead!