As the days ahead are unsure for most car makers, OEMs are delving into new methods to boost demand and increase their sales. They are leaving no stone unturned to up consumer sentiments while also making sure not to dig deeper into their pockets. In line with this, Maruti Suzuki has reportedly planned to start car leasing services across India through their existing dealership networks. VW India has also launched their own version of car leasing services, two days ago.
What is Car Leasing?
The concept is similar to renting a house, where we pay a monthly rent for using the property while not having the burden of owning and maintaining the property. Car leasing is exactly similar, where the customer can choose the car of his choice, and then pays a monthly fee for an agreed period of months. Servicing and maintenance is also usually covered in the monthly fee, and hence is not an additional burden on the customer. Few OEMs also offer courtesy car (spare car) during longer days of service and maintenance.
Benefits of Car-Leasing:
- Spanking new car, as you like and when you like it.
- No down payment. Only monthly fee.
- No risk of “Re-sale” value.
- No additional maintenance and repair fee
- No hassle in case of long maintenance, you may get a courtesy car
- Upgrade to latest tech laden cars, every few years
- “Pocket friendly”. “Risk Free.”
See how Maruti Suzuki is promoting Leasing options in India –
In developed markets like the US, UK and Europe, car leasing is a very popular strategy. Though it is not new in India, this is yet to pick up steam. Many OEMs in India are already providing such services to their customers. Few OEMs feel the current situation may favor car leasing in India and increase demand substantially.
OEMs currently offering car leasing services in India are Hyundai, M&M (through zoomcar), Mercedes Benz and BMW. Maruti and VW are now getting added to the list.
What would you prefer? Owning or leasing? Throw in your comments —
(The article is written by Karthick. He is an auto enthusiast, and an engineer by profession, currently employed in an auto MNC at Chennai; has a craving on new tech and a particular interest on the Indian automotive market.)