As most UK drivers know, leasing a new car is rapidly replacing ownership and with depreciation on a prestige car sometimes writing off about 60 percent of the value within three years, you can see why. Now the same process is starting to revolutionise the car market in India, as a growing middle class can see the benefits of saving their capital, and deploying it into something else.
Surely it cannot be long until a major UK insurer bins off the outdated TPF&T or Fully Comp options as a default position, and offers monthly subscription insurance rates, synced to the actual miles covered, and the type of driving involved, with data collated via smartphone app or telematics device?
Here’s the word from Mahindra;
With the rise of ride share apps like Ola, Uber as well subscription apps like Revv and Zoomcar, it is clear that owning a car as we know it is no longer the norm. In line with the changing times, homegrown carmaker Mahindra has introduced its own unique subscription-based ownership service for retail customers. This initiative in partnership with Revv is available for retail customers in Delhi (NCR), Mumbai, Pune, Bangalore, Hyderabad, Kolkata, Chandigarh, and Ahmedabad in the first phase.
Not to be confused with Mahindra’s leasing plans, the subscription plans start at Rs 19,720 per month (about £220pm) depending on the model, which is inclusive of insurance and routine maintenance charges. Some of the benefits include zero down payments, no road tax, zero risk on the resale value of the vehicle, and customers can select from a range of Mahindra vehicles like the KUV100, TUV300, XUV300, Scorpio, Marazzo, XUV500 and the Alturas G4.
To become eligible for subscribing to a car, customers will need to share certain personal details as well as pay a refundable deposit based on the model chosen and the usage period selected. The vehicle is then ordered by the company and delivered within one month, with the first month’s advance fee needed to be paid prior to delivery. The fees continue until the duration of the subscription.