In the bustling cities of India, where car ownership is often considered a symbol of status and convenience, it's no longer just about possessing a vehicle. With lifestyle shifts and financial considerations, more Indians are looking beyond traditional automobile ownership. Whether you're an entrepreneur testing out a new city for a few months or an IT professional on an extended assignment in a metro, your mobility needs differ. So, should you subscribe to a car lease or opt for a long-term car rental? The answer lies in understanding these options in detail.
This blog will dissect and distil the pros and cons of short - term car leasing options and long-term car rentals, offering insights to help you make the choice that suits you best.
Leasing vs Renting a Car: The basics
Understanding car leasing
In India, a personal car lease typically spans two to five years but can be as short as one year under some leasing companies like Quiklyz. This arrangement lets you drive around in your choice vehicle without owning it outright.
However, owing to its nature, leasing mandates comprehensive auto insurance coverage inclusive of collision and third - party liability - quite unlike the minimum liability insurance required for owned vehicles. Due to these benefits, individuals usually go for car leasing with insurance.
Decoding car rentals
Car rentals give you access to vehicles for periods ranging from a day to several months. If you already have auto insurance, it likely covers the rental vehicle, but additional coverage can be procured through the rental company.
Here's a comparative look at both options:
| Car Leasing | Car Rental |
Duration | 1-5 year | 1-5 year |
Source | Dealerships and leasing companies | Rental companies |
Insurance Coverage | Comprehensive (collision and third-party liability) | Generally covered by existing auto insurance; can add extra coverage |
Short-Term Car Lease vs Long-Term Rental
The Short-Term Car Lease Breakdown
A short - term car lease in India typically lasts up to two years - shorter than traditional leases. Such leases may have higher monthly payments due to the compressed timeframe. The lessor checks your credit score, determining the vehicle types you can lease and your interest rate. The better your score, the more favourable your terms.
However, leases often come with fees like acquisition, security deposit, disposition, registration, and title fees that could inflate your overall cost. Additionally, there’s a mileage limit - usually around 12,000 to 15,000 km per year - beyond which you incur extra charges.
What Does Long-Term Car Rental Involve?
Long - term car rentals let you use a vehicle for an extended period without needing a credit check - just your driving licence and a recognised credit or debit card. Rental companies often lower the rate for long - term rentals compared to short - term ones and sometimes offer unlimited mileage.
While leasing comes with its share of fees, rentals aren’t exempt either - you could encounter rental and local taxes, early - return fees, late - return costs, refuelling fees, etc., but an option to add extra insurance coverage is available.
Interestingly, some rental companies allow you to switch vehicles during the rental period - a flexibility not usually found in short - term car leasing options.
Your Choices for Short-Term Car Lease and Long-Term Rental
For Short-Term Car Lease
You can utilise lease takeover platforms like Quiklyz. With Quiklyz you can lease (subscribe to) a brand - new car. This car subscription allows consumers to make the shift from ownership to users, highlighting how subscribing to a car lease is convenient by replacing a down payment, a car loan, taxes, maintenance charges and other ancillary expenses with a ‘single monthly fee’. Insurance with car leasing is also a major highlight of short - term car leasing options.
For Long-Term Car Rental
Some rental agencies offer long - term rentals, but extended terms might be available only on certain vehicles. It's advisable to check vehicle availability and rental term options from multiple agencies before deciding.
Conclusion
The choice between a short - term car lease and a long - term rental hinges on your specific needs - duration of use, budget constraints, flexibility requirements, credit score, and more. But as urban India shifts towards a more flexible lifestyle, Quiklyz emerges as an attractive alternative with its comprehensive car subscription model, offering flexible tenures without long - term commitments.
Why buy when you can subscribe to a car? With Quiklyz, experience the freedom of mobility without the hassles of ownership.
