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Car subscription has become more attractive than car loan. What are the conditions?
According to the National Automobile Union, the average monthly subscription is 1.5 times more profitable. And high rates will make this form of car ownership dominant on the market. Business FM contacted a number of showrooms to find out what they offer to car owners.
The car subscription is very simple. You pay a fixed amount every month and use the car on a permanent basis. You only pay for fuel and parking; all other expenses are covered by the company. This includes compulsory motor third party liability insurance and comprehensive insurance, registration, roadside assistance and towing, maintenance every 20,000-30,000 km, winter and summer tires, etc.
As Business FM was told by the holding company "Avtodom", to which the editorial staff approached under the guise of a client for a subscription to Chery Tiggo 7 Pro, many customers use their cars for a year, and then return them and switch to a new model. If you really like it, you might buy it again.
At first glance, the benefit of a subscription is not carpooling, where you share a car with hundreds of other drivers, or getting loans with interest rates that now exceed 20%. On the one hand, it's like a big test drive, but on the other, you always understand. If something happens, you can always change the car. Of course, the conditions are different everywhere. Where you can buy a car and where you can't - one car dealer limits the mileage to 2,000 km per month, another 5,000 km. If it exceeds it, you will have to pay an additional fee. Solaris Business FM contacted Hyundai Mobility regarding the subscriptions used.
— The standard Lifestyle tariff includes a 6-month subscription. Our service does not offer refunds. — Do you offer refunds for other subscriptions? - No. In general, our services do not include the purchase of cars. — What is the price range for Solaris for 6 months? — One is available in the configuration and costs 39,900. This is a fixed price. Maintenance costs are included, and the price also includes seasonal tire fitting, a roadside assistance program, and full insurance (OSAGO and CASCO) (no deductible). The cost of a monthly tariff with the option to extend will be higher, since the tariff is calculated for only one month and more mileage is offered by subscription. For the Lifestyle tariff, this is 2,500 km. The mileage limit for travel tariffs is 5,000 km per month. Travel Solaris costs 59,000-39,900 with the Lifestyle tariff.
Tariffs remain the main destabilizing factor. Of course, it varies greatly depending on the model, but nevertheless, Geely Coolray - 53,000 per month, Omoda C5 - 90,000, Chery Tiggo - 99,000, Mercedes-Benz E-Class - 460,000. Of course, there are much fewer old European and Korean brands, but finding one for less than 40,000 per month will be problematic. The average car loan payment is 20%, which will be exactly the same or slightly higher if you use a car worth $ 2 million for five years.
Haven't subscriptions become more profitable than loans? In fact, everything is relative, says the author and host of the Ministry of Transport program Vyacheslav Subbotin.
The popularity of auto-subscription has indeed grown, but not dramatically. But for Russian drivers, this is a completely different paradigm of consumption, to which they still have to get used. And further increases in loan rates will probably increase interest in the subscription.