Car Buying Vs Leasing Vs Subscription - The Definitive Guide

This is a detailed comparison addressing the pro’s and con’s to help you make the most rational choice

Most car buyers are spoilt for choice and have a wide array of products to choose from, but in addition to this, you now also get various ownership options. While conventional car buying is still very popular, car leasing and car subscription are slowly gaining popularity for their easy and hassle-free ownership experience. Here is everything you need to know about car buying vs car leasing vs car subscription.

What is car buying?

A number of third party companies are also offering subscriptions and leasing options to the buyers

Buying a car usually requires a long term commitment and requires you to spend a large sum of money at the time of buying the car, even if you are taking a finance scheme for your car. Having said that, car buying has its own set of pros and cons that are mentioned below:

What are the pros of car buying?

Lets the buyers own the car for a long-term
You can recover a major sum of the cost by reselling the car after a few years
You are free to modify, customise, and upgrade the car as per your desire
No maximum limit on the mileage

Car buying too has its own sets of pros that attract majority of the buyers

What are the cons of car buying?

High initial investment as you will have to pay for the downpayment, insurance, registration, and other charges.
The cost of the car depreciates significantly over time
You need to take care of the maintenance, service, and repairs
No or fewer tax savings

Car Leasing

Car leasing is a good option for those looking for a long-term ownership

Car leasing nowadays is seen as comparatively cost-efficient when compared to car buying and car subscription. The buyers opting for car leasing will have to pay monthly fees that include basic rental, the number of kilometres, maintenance, breakdown assistance, and insurance. It is however worth noting that those opting for car leasing will get not get a commercial license plate. Mentioned below are the advantages and disadvantages of car leasing.

What are the pros of car leasing

Helps you own the car by paying a lumpsum initial amount
You can easily return the car after you no longer require it or after a certain period
The downpayment is low
Business owners can use it for tax savings
The leased cars can be bought after the term is over at the depreciated costs

Car buying offers VFM but is not hassle-free and difficult for many

What are the cons of car leasing?

Despite paying money for the entire tenure, you won’t own the vehicle
A penalty is levied if you decide to end the lease prematurely
It still is a costly affair when compared to buying
Most of the cars come with a mileage limitation

Car Subscription

Swipe up to read all the details about car buying, car leasing, and car subscription.

While car leasing is a long-term affair, it is the car subscription model that will attract a big chunk of consumers, especially those looking to get a car for a few months or a couple of years. Having said that, the subscription cars often come with commercial number plates that attract additional tax during interstate travel. Here are a few pros and cons of a car subscription:

What are the pros of car subscription?

No credit score is required
Useful for those looking to own a car on a short-term basis
The easiest way of owning a car
You don’t need to pay for the insurance and maintenance
Plenty of tailor-made options to choose the plan that suits you best

What are the cons of car subscription?

It is usually the most expensive way of owning the car when compared to leasing or -buying
Cars come with a commercial registration plate
You can not be the owner of the vehicle at any point
No modifications or upgrades can be done on the leased cars
Not all the cars are available for vehicle subscription

Armed with this information, I’m sure you’ll now be in a better position than before to go with the option that suits you best.