How to sign up for a car subscription plan: Key tips

With the rapidly evolving consumer preferences, car subscription has been finding an increasingly strong footprint in the automobile market over the last few years. While this business model has already found popularity globally, it is still at a nascent stage in India, but growing gradually. Consumers who want to drive a car themselves and taste the ownership experience, but don't want to go through the hassle of car buying and owning processes, find the car subscription or car leasing plans useful.

Car subscription plans can be cost-effective solutions for consumers if a few key tips are followed. Also, it offers the consumers the experience of actual ownership without really buying the vehicle. It is more like opting for a car rental for a longer period. In many cases, a car subscription plan offers lesser monthly costs compared to actually buying and owning a vehicle and repaying the loan for it.

A car lease is basically a way to borrow a car instead of buying a new or used car. The car subscription plans typically come with three- or four-year contracts and an in-depth agreement. If you are planning to opt for a car subscription plan, here are the key tips on how to sign up for that.

Do a thorough research

The first thing you need to do before subscribing to a car leasing plan is thorough research. First, narrow down on the type, brand and model of the car you are interested in. Also, check the pricing of the subscription plans and compare them with your budget. Also, compare if a car subscription plan would be actually cost-effective for you compared to buying and owning a personal vehicle. While doing the research, pay close attention to your driving habits and how the car will fit into your lifestyle.

Visit dealers offering car subscription

This part is quite similar to the actual buying process of a car. Visit a few dealers and car lenders who offer subscription plans. Take test drives of your chosen vehicles to check if the car feels right to drive to you. This will help you to narrow down what exactly you are looking for.

Negotiate terms of the subscription plan

After narrowing down on the specific model and lender, negotiate the terms of the subscription plan to make them in your favour as much as possible. If possible, negotiate with multiple dealers. Make sure to get the perks you want in writing from the dealer in the agreement document.

Compare multiple plans and offers

Use both online and offline resources and compare multiple offers you have to ensure you secure the best deal. Visit a few dealerships and discuss what they are offering. Compare multiple plans and offerings before signing up for the final plan. While comparing these plans, take into account factors like monthly cost, kilometre capping, buyout price, and capitalized vehicle cost. Also, check the fees the lessor is charging, including acquisition fee, disposition fee and early termination fee. Compare them with other similar offerings.

How to sign up for a car subscription plan

Step 1 :

Do a thorough research

Step 2 :

Visit dealers offering car subscription plans

Step 3 :

Negotiate terms and conditions with dealers

Step 4 :

Compare multiple subscription plans