Should I subscribe to a car or buy a car before I turn 35?

 

Most people will agree that life gets exciting when you get your first job. By this point, you're an adult, and you are starting to stand on your own feet (financially), which opens up many opportunities. Travel, shopping, buying your own stuff...you can do it all without depending on someone else. You might even set a few life goals before hitting 35, such as visiting your bucket-list countries, or having a destination wedding or maybe even buying your own dream home. 😇
 
Now, it's also likely that you would want to have your own car by this point (who doesn't dream of that!) 🚗 But what if you want to experience living in different cities before settling down, or you don't want to be burdened with a loan? Should you give up on having your own car? With car subscription services, like Quiklyz, making their way into India, you can have a car without the car loan! Read on to know more.
 
The argument for buying a car
 
Buying a new car is a feeling not easily matched. It is a feeling of achievement, of having passed one of life's significant milestones. That 'new-car smell' is not something that we get to enjoy often. And there's the fact that the car you buy is entirely yours, to do with as you please within the bounds of the warranty – fit a better audio system or better wheels and tyres, it is entirely up to you. You don't have to worry about renewing contracts or some such. When you finally choose to upgrade, you can sell it and move on to another model that thrills you.
  
The argument against buying a car
 
The process of buying a car is quite a complex one. It involves looking at a lot of options and getting multiple quotes. Even after your research, there's the very real risk of someone making you feel like you made the wrong decision. Plus, there are many other steps, such as negotiating the price, applying for a loan with your financier of choice, getting approval – and making the down payment yourself, which is a significant sum. 
 
However, if you're not sure about your needs or don't know enough to correctly decide the car you want, this might turn out to be an expensive mistake. 😨
 

You see, a car is the second-most expensive purchase we make in our lives, after a house. Unlike a house, the car depreciates as soon as you've purchased it, and if you feel like an upgrade in just over a year, be prepared to take a 20 per cent hit on the value of the car.

 

That's well over 2 lakh rupees for a 10-lakh-rupee car, and we're not even looking at other expenses like the annual/biannual service and insurance renewal. 
 
This brings us to our next point of car ownership. 
 

The EMI is not the sole cost of car ownership. That's merely one cost– the other two costs that you have, whether or not you drive your car, are the scheduled service and annual insurance premiums. 

 
This can increase the cost of owning your car dramatically. For example, say your EMI is around Rs 14,000 for a five-year loan on a Rs 10 lakh car. Assuming an annual service cost works out to Rs 12,000 and zero depreciation insurance works out to Rs 24,000 every year, your cost is now Rs 17,000 per month! Account for depreciation, and you've essentially put in Rs 4 lakh into the car by your 13th month of ownership. And don't forget, you probably already paid a huge lump sum as a down payment before even getting the car! 
 
If you move from one state to another, you have two options – either sell your car and buy another in the new state that you move to or re-register the car in the new state. While the government has introduced BH number plates to benefit vehicle owners who have to move from state to state, it does have its limitations. 
  

Re-registering a car when moving to a new state is a long, complex process, and you must apply for an NOC at the car's original RTO and pay the registration fees once more at the new RTO.

 
Oh, and have you ever tried selling your vehicle? Even if it is in top shape, the market will dictate its price, and buyers will haggle to no end. Selling it to a dealer in exchange for a new car involves fewer hassles, but it's unlikely that you will get its market price or actual value. 
 
The argument for car subscription
 
Subscribing to a car is a new way to get yourself a new car, and several aspects about it make it extremely alluring. We can't talk for traditional car rental or car subscription services, so we'll take you through in the context of what we offer on Quiklyz. 
 
On Quiklyz, you do get a new car, regardless of the make, model and colour you choose. Secondly, there is no down payment to be paid – you only need to pay a security deposit to start your subscription. This deposit is equal to one month's subscription fee and nowhere close to the large amount you'd otherwise spend as a down payment when buying a new car. After that, you pay a monthly fee that can simply be automated by linking it to your credit card. The cost of the car subscription includes the scheduled maintenance as well as the insurance premium cost, which you do not have to worry about. What does this translate to? A much lower outflow of funds from your pocket compared to what you would be shelling out if you had to buy a car! 
 
The car's depreciation also does not affect you, and neither do you have to put time and effort into selling it at the end of your tenure – Quiklyz simply takes it back. At the end of the tenure, you can choose to terminate your subscription, extend your tenure, upgrade your car, or even buy it if you aren't ready to give it back 💙.
 
The argument against car subscription
 
There are very few things to be said against a car subscription. The only thing you can't do when you subscribe to a car on Quiklyz is make significant customizations that change the fundamental makeup of the car. Besides that, there really aren't any restrictions on how you use the car, how long you can keep it, or which one you get – we have a wide variety of every make, model, and colour you can imagine. In case you have a long commute, you can pick the right package (we have three – silver, gold, and platinum) basis how many kilometres you think you'll be covering every month. 
 
What should you do – buy or subscribe? 
 
The answer to whether you should buy a new car, wait, or subscribe isn't as tough as it used to be. A few years ago, when car subscription in India wasn't a well-developed space, maybe; but now, things are transparent, convenient, and easy – at least on Quiklyz. 😀
 
There are some temporary options that you can exercise while you make up your mind, like renting a car with a driver or even renting a car without a driver – but these are often per-trip solutions that require the availability of the vehicle immediately. In a nutshell, if you’re sure you’re of keeping your car for around 7-8 years, then subscribing to a new car is the way forward. For a lower monthly fee, no down payment, and with a commitment for as little as 24 months, you can Quiklyz a car, and choose to extend your subscription, move on to a newer, better model, or simply purchase the car anyway. Purchasing a new car does not offer you this freedom of choice.