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Wheels for a steal: To buy or to rent? | LiveMint

Mumbai: To buy or to rent? The question can be asked for most things: homes, household appliances or vehicles. With changing lifestyles and growing frequency in change of job locations, more and more people are abstaining from buying cars.

Automobile companies such as Hyundai, Mercedes, Mahindra and Mahindra, Fiat and Skoda are offering leasing services, according to Darshini Kansara, research analyst at Careratings, a research agency. Let’s decode the concept of taking a car on lease.

How does it work?

In this scheme, you can lease car directly from the manufacturer without worrying about the resale value, down payments and equated monthly installment (EMIs). The legal ownership of the car remains with the manufacturer.

“This service will work for you if you need to relocate to another city for two-three years and you would need a car for daily commutation,” said Vikas Jain, national sales head, Hyundai Motor India Ltd. You can pick a car of your choice on the manufacturer’s website after considering the model, subscription amount, mileage and charges. The charges are for rental, insurance cover, car switching and maintenance. “Insurance premium is for three years—we divide that amount and charge the customer on a monthly basis, only for the months he or she keeps the car,” said Jain. You can also switch the car models depending on your manufacturer. Its cost is based on customized calculation factoring usage, inclusions and exclusion.

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Wheels for a steal: To buy or to rent?.

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