[HarshGtR]

Hyundai Motor India Ltd (HMIL) has announced the launch of ‘Hyundai Subscription‘. The initiative comes to life through an exclusive strategic partnership between Hyundai and Revv. The plan is simple. To make Hyundai car ownership more attractive, and possibly more accessible to a larger buyer group through hassle free ownership, flexibility and limited commitment basis its novel ‘Subscription Based Ownership Model’.

All Hyundai cars, including their popular cars like Creta, i20, Grand i10 and Santro, will be available under this new model. With shared mobility growth being an established pattern, the space has grown from USD 900 million in 2016 to USD 1.5 billion in 2018, and is expected to further grow to USD 2 billion by 2020. The 15,000 strong car sharing vehicles in India are expected to grow to 50,000 by 2020, and 150,000 by 2022.

To begin with, Hyundai pilot project is being kick started in Q1 2019, and will be available across six cities – Delhi NCR, Mumbai, Kolkata, Pune, Bangalore and Hyderabad. Hyundai Subscription makes available the choice of flexible ownership plans to customers. Plan flexibility means subscription for short term / long term, and swap across Hyundai range.

This specially created financial tool is offered with zero down payment. Benefits also include no insurance / maintenance for short subscription, including an assured-on demand delivery. For customers who select a plan with one-year subscription or more, only those are assured a brand new car. Those who go for a lesser subscription, might be provided used car.

Source: RushLane

[SR-71]

I dont believe this will benefit the end user who are in it for the long run. For an Elantra SX(O) AT, their own calculator shows that a subscription plan with the choice of buying at the end of 48 months comes to 30.51L. However a regular EMI based purchase costs 28.5L. Perhaps it helps people looking for short-term leases and deep pockets and wanting to change a car every couple of years.

[Turbanator]

Good initiative, here's the link to the FAQ. Can be a good option for small businesses. I wish, BMW guys read this

https://www.hyundai.com/in/en/buy-a-...i-subscription

Originally Posted by SR-71

I dont believe this will benefit the end user who are in it for the long run. For an Elantra SX(O) AT, their own calculator shows that a subscription plan with the choice of buying at the end of 48 months comes to 30.51L. However a regular EMI based purchase costs 28.5L.

I think it varies between different vehicles and looks better if someone opts for 48 months or maybe I am not understanding correctly, here's one example for Tuscon.

Could not find Mileage conditions, there must be some limits on how much you can drive in a Year probably.

[Guna]

Originally Posted by Turbanator

Good initiative, here's the link to the FAQ. Can be a good option for small businesses. I wish, BMW guys read this

In case of the guy who has spent 34 lakhs to buy the car (as against the 32 lakhs for the subscription), he will get 17 lakhs back when he sells the car
Am I missing something here?

[Turbanator]

Originally Posted by Guna

In case of the guy who has spent 34 lakhs to buy the car (as against the 32 lakhs for the subscription), he will get 17 lakhs back when he sells the car
Am I missing something here?

No, you should get the car at end of 48 Months (look at settlement charges to acquire the car) and can sell at 17 lac or whatever. Looks Hyundai is supporting via subvention at the start of tenure on lower selling variants. Don't know how will they transfer the ownership or handle road taxes at that time though.

[Guna]

Originally Posted by Turbanator

No, you should get the car at end of 48 Months (look at settlement charges to acquire the car) and can sell at 17 lac or whatever. Looks Hyundai is supporting via subvention at the start of tenure on lower selling variants. Don't know how will they transfer the ownership or handle road taxes at that time though.

Looks to be no different from the car leasing schemes or corporate car schemes. If the customer has to opt for the car in the end, they can't call it as subscription model.

[Dry Ice]

So, will it be yellow on black plate like self drives or black on white like personal cars.

Our country has a nice hodgepodge of rules for commercial & private vehicles, so this might also dictate the final choice.

[KaandBaaz]

Originally Posted by Dry Ice

So, will it be yellow on black plate like self drives or black on white like personal cars.

It would be black plates like self-drives or the premium taxi's.

[drmohitg]

Originally Posted by Dry Ice

So, will it be yellow on black plate like self drives or black on white like personal cars.

Our country has a nice hodgepodge of rules for commercial & private vehicles, so this might also dictate the final choice.

In addition to that hassle, there is also the social stigma associated with driving a yellow on black plate car as your daily drive. The IT world might have moved ahead with their thought process but the most car buyers still would shy away from being seen in a borrowed car all year around.

[libranof1987]

A pretty good idea that hasn't really picked up in India.

Originally Posted by SR-71

I dont believe this will benefit the end user who are in it for the long run. For an Elantra SX(O) AT, their own calculator shows that a subscription plan with the choice of buying at the end of 48 months comes to 30.51L. However a regular EMI based purchase costs 28.5L

Such plans typically include insurance and maintenance/repairs (non accidental), which offsets the difference. This ain't one for someone who wants to keep for 10 years though.

This specially created financial tool is offered with zero down payment. Benefits also include no insurance / maintenance for short subscription, including an assured-on demand delivery.

Originally Posted by Turbanator

I wish, BMW guys read this

Oh, but there is. BMW have been promoting their lease plan quite a bit of late. I've seen the offers on 3 series/X1 though, not sure about the higher range.

Typically, the BMW deal for X1 is:
5 lakhs down
~40k/month, 4 years tenure
Then, pay 17 lakhs and keep the car or return

[aniyo]

I had a discussion with the Revv team. Here are the details for Hyundai Creta 1.6 SX CRDI. On the face of it looks expensive. Have not got down to negotiations.

First the restrictions:
1. Number of KM/month are 1500. Rs. 1.5/KM exceeding this limit payable. If we use less than 1500 the balance is carried forward to next month
2. The number plate will be Yellow on Black board. So we will have to pay interstate tax/charges as applicable.
3. Till we are in lease the car will be in name of Revv
4. Insurance every year will have to be borne by customer.
5. Maintenance charges are included in the monthly lease cost

Attaching the excel file calculation for reference.Car lease hyundai.xlsx

The big advantage is no major upfront payment. But end of the period we end up paying a lot more.

[HarshGtR]

Originally Posted by aniyo

I had a discussion with the Revv team. Here are the details for Hyundai Creta 1.6 SX CRDI. On the face of it looks expensive. Have not got down to negotiations.

First the restrictions:
1. Number of KM/month are 1500. Rs. 1.5/KM exceeding this limit payable. If we use less than 1500 the balance is carried forward to next month
2. The number plate will be Yellow on Black board. So we will have to pay interstate tax/charges as applicable.
3. Till we are in lease the car will be in name of Revv
4. Insurance every year will have to be borne by customer.

Attaching the excel file calculation for reference.Attachment 1857378

The big advantage is no major upfront payment. But end of the period we end up paying a lot more.

This plan is only good if we buy the car after subscription and then sell it to get some money back. Otherwise paying 18 lakh in four years and then returning the car makes it very expensive. Or else subscribe for one year, use the car, experience it and then return it.

[aniyo]

Yes. I was calculating.
Assuming we make a 9L downpayment and loan 8.5L (Creta SX in Bangalore is about 17.5) the total payable after 5 years is Rs. 19,71,000.
For lease if we buy the car after 4 years the total payable is Rs. 22,20,000

Factoring in that we have to pay additional 8L upfront this amount seems decent.
Though I remember my previous company had car lease and a tie up with Orix and that worked out real cheap. An AWD duster I would have got for 12L on road against 15L if I went without lease 3 years back.

Do note we will have to pay additional tax/ charges whenever we move state boarders. I forgot to mention that maintenance cost is included in the above mentioned prices including change of Brake pads etc.

[tarik.arora]

Will the user get any tax benefit? if yes, that might change the equation.

[rovingeye]

I'm unable to find AT in any of the vehicles on offer in revv. Why's that?