Hyundai subscription ownership plans explained – Better than EMI schemes?
Hyundai Subscription will get off to a start in Q1 2019 and will be available across 6 cities of Delhi NCR, Mumbai, Kolkata, Pune, Bangalore and Hyderabad.
Hyundai India has entered into an agreement with Revv. This alliance will allow customers to use cars from the Hyundai portfolio via a subscription based ownership model. The subscriptions plans are divided into short and long terms, offered with benefits such as zero down payment, no insurance or maintenance and assured on demand delivery. The scheme also offers customers availing of a one year or more subscription plan to get an assured brand new car while those customers opting for lesser subscription could be provided with used cars.
Hyundai subscription based ownership model is offered on cars such as the Creta, i20, Grand i10, Santro, Xcent, Verna, Elantra and Tucson. It is initially being offered across 6 cities in India and will be expanded to other cities at a later stage. Subscribers to this new Hyundai initiative along with Revv will be able to download the App via Google Play or Apple App Store. The app allows the user to pick the car, time and place; receive the car at the doorstep , avail the use of the car and get it picked up from ones selected location.
This approach is being viewed in a bid to tap customers while selling of new cars is getting more difficult. As has been seen in the past few months, multiple car brands have introduced leasing options and some have even tied up with app based taxi operators apart from the subscription based ownership model.
The monthly scheme is very simple. You select the start date, select the Hyundai car which you want and make the payment. Depending on your location, the car will either be dropped to your doorstep, or can be picked up by a nearby location. All monthly plans come with a driving limit of 2,500 kms. If you cross that limit, you will need to pay extra Rs 7-13 per kms, depending on the car you have taken on subscription. More details in the table below.
In the monthly scheme, you are not guaranteed a brand new car, neither all Hyundai cars are on offer. But in the case of yearly subscription scheme, you are guaranteed a brand new car of your choice, and variant. Even in yearly subscription, you are charged monthly, not a lump sum amount. The monthly fee in yearly subscription scheme is about 40% less, as compared to the rental in monthly scheme.
Hyundai claims that the monthly fee charged in yearly subscription plan, is less than the EMI of the same car, if you decided to purchase it via a finance offer of 48 months. Other benefit is that in the subscription model, maintenance is taken care by Hyundai. Even the road tax, registration charges are taken care by Hyundai. The only charge additional to the monthly payment, is the yearly insurance fee.
In monthly subscription plan, you are not locked in. But in yearly plan, you are locked in for a year. At the end of 1 year, in case you decided to return the car, Hyundai will take it back. All you need to do is give them a notice of 3 weeks. In case you want to keep the car, you can continue to do so by paying the yearly insurance fee and then the monthly subscription fee. Compared to the monthly subscription fee in 1st year, the fees are reduced by about 20% in the 2nd, 3rd and 4th years.
At the end of every year, you can decide to either buy the car, or return it back to Hyundai. In case you decide to buy the car, you will need to pay a settlement charge, as shown in the images in the post, where in one photo you can see charges for 1 year plan as well as 4 year plan. Hyundai claims that anyway you look at it, the subscription based model has more advantages, compared to regular finance schemes which are on offer today.
These rental schemes, be it short term or long term, have their advantages in terms of convenience and easy accessibility. The benefits are also extended to no insurance burden on the lessee, no maintenance and assured delivery on demand.