[Dry Ice]

Originally Posted by govigov

They have also not talked about how to deal with an accident scenario, whether they will take care of everything end to end, or whether the leasee has to shell out something from the pocked.

Heres what they say about accidents in the FAQ

What do I do if the vehicle breaks down or if I meet with an accident and what will be the maximum liability?

In such cases, please notify us immediately and we will guide you through the entire process. We have comprehensive insurance for our cars and the maximum liability will be the difference between the actual cost and the amount reimbursed by the insurance company against the claim. In case of a major accident, if the structural frame of the car is damaged which results in depreciation of the value of the car, the subscriber can either buy the car at market price or pay for the depreciation in the value of the car.

What if the car gets stolen?

Immediately notify the theft to us, so that we can help you locate the car. Make sure to notify the theft at the nearest police station and lodge an FIR. Detail T&C will be mentioned in the agreement between the subscriber and pumpumpum

[deep_bang]

Btw- there is also GST that will get added for every installment. That almost makes it a no brainer that this scheme does not make sense.

I get the problem in India that people don't use leased cars as their own and so the cars get abused. However, take any tbhp user for example, and I am sure we take care of the car as good or even better than our own cars. So the question is, how can companies identify better users and reward them with better deals?

One interesting comparion I can draw is quick ride. Now they targetted the corporate users with an intention that they are more trustworthy and there is traceability in case something happens. I wonder if there is a way to make something similar in rental cars - make it a super sweet deal for good drivers and a not so good deal for the bad ones.

[Cessna182]

The concept is nice but the rental is very high considering that they allow you to drive just 1500 km a month. I wonder why they chose this pricing. The corporate rates may find takers, but the retail rates won't, as many have already explained on this thread.

This makes sense for those who are in a specific city for an assignment for a few months. If you don't drive a lot, Rs. 500 a day gets you a car for city driving. This is often cheaper than getting a cab. But for anything longer than a few months, buying a used car is cheaper.

[SS-Traveller]

How is this any different from a long-term subscription from Zoomcar?

https://www.zoomcar.com/zap/subscribe

[GTO]

PumPumPum's pricing is insane; it's a fantastic idea though . More companies should take inspiration & offer used cars on lease. Not just startups, but even established behemoths like say, a new leasing division from Maruti True Value. It's a win-win because the profits in these can be enormous, while leasing a used car can be so much cheaper than new.

[aargee]

Originally Posted by fazayal

Don't think toll amount should be added in ownership cost!

Well, I had it added in my records, takes mammoth of an effort to post it here excluding the toll cost.

Originally Posted by govigov

Thanks RG...If this was all frills included, no additional charges to the leesee, then it would have been OK.

My point here are:
1. Any business is there to make money, sure yes, the high cost is justified from their point of view
2. However, the business would've sounded more ethical on decent profits. May be they worked out on bringing down risk & straighten the profits with both good & bad customers, but, for most being good customers, this high cost is a turn off.

Sure these cost per Km are way too high & some things that pop in my mind are...
1. Working out the cost based on the condition of the car that's returned, like keep cost low for good customers & high for folks who return damaged cars. Difficult in reality than posting in forum I agree
2. Work out a deal with used car dealers for a long standing car that simply occupies space. Instead share the profit & work out the risk with them.
3. Upgrade & customer retention programs might work out beneficial in long term

Pump could have their own reasons, but from a consumer's stand point, this is way too high to start. For instance, Alto's Rs 11,915 EMI per month works to more than 4L in 36 months which means, its as good as owning one.

[landcruiser123]

What a name They should sure advertise on all cartoon channels.

Leasing used cars seems such a failed business model IMHO. Customers who lease:
1. Companies with transferable employees
2. Businessmen who like changing cars often
3. People who are living temporarily in a new city


Most of the parties listen above are fairly wealthy and generally have a lot of financial leverage. Why the hell would they lease an older car when they can be leasing and driving shiny new ones?

Even among the general public, I'm pretty much sure nobody wants to be seen renting or leasing an older car.

[Lowflyer23]

[quote=Dry Ice;4886458]

Some AT options

[list][*]2014 Ford - Ecosport - Ambiente 1.5 Tdci - INR 20,200/month

IMO the EcoSport diesel never came with an AT. What a name though PumPumPum

[BLACNWYTE]

Call me old fashioned but I don't think the Indian aam junta is ready for the car leasing options. Maybe the trend is changing in metro cities with millenials and businessfolk but not much for the regular Joe. People see car as an aspirational item even now. The ownership matters a lot and I for one doesn't see the upside in paying a hefty monthly fee for something I won't own at the end of the agreement period. Sure this gives the flexibility of driving a new car every 1-2-3 years as per our choice but still.

In the current case of PumPumPum, silly name nonetheless, I don't have a problem with the name but the policy and pricing. Policy in the sense, that their mechanic will estimate useable life left of wear and tear parts and if by some unforeseen circumstances should these fail prematurely the customer will be liable. Will there be an assessment by an independent third party?

And the pricing, the monthly fee for 2015 Ecosport Titanium is around 23k. A car like that is a keeper for at least 3 years. And it will cost about 8.25 Lakh to retain it for that long. What will be the cost of a new one on which you can get the resale amount at the end of 3 years?

Leasing is a good option for folks who use a car anywhere from 6 months to 1 year (for used cars) and 2-3 years for new ones. Even then the pricing offers by (Pum)3 is just insane. IMHO.

[Naman_Ferrari]

I worked quite a bit on this idea about a year ago. Didn't go ahead because:

1. Hard to price it lower than EMI's, after factoring in risk, expenses, marketing costs etc.
2. Legally, the car needs to be re-registered with a black number plate since it's a self drive rental. This adds cost and if the customer wants to buy the car in the end, it has to be transferred back to white plate. Not sure if this rule has changed now!
3. Too much initial capital outlay and risk of failure. Startups are always uncertain but after research, I wasn't sure if people would go for this. Besides I know someone who started a rental service many years ago in Delhi. Went out of business because people stole parts from cars. Maybe some of these things are too good for India. Not saying everyone does this (most people don't). But some people definitely do.

Anyway, interested to see how PumPumPum does. I hope they change that atrocious name soon!

[drmohitg]

Apart from the high cost of ownership, I feel such endeavours would never be successful in India since we associate owning a car as status symbol. The differentiating number late gives it a Taxi image. Hiring a car for a road trip is acceptable but having one as a everyday ride sporting that taxi plate is not going to go down well with the larger public.

[poloman]

Before starting any venture, one should expect a thorough market study analysis from the company. Have these guys done any such thing?
Who is the target customer here and what are the cost points he is comfortable with?

I was on a 1 year assignment in Gurgaon. Used to spend upwards of 6-7K for Uber/Ola. But these were not reliable when ever it rains or such eventualities. Did not want to buy a car for such a short period of time. So leasing option would have been a natural choice for me. But these figures are way out of my comfortable zone. Anything above 10K leasing cost + fuel expenses for an entry level hatchback will be a huge over kill. The limitation of 1500 per month is another big red flag.

These guys should understand the ground realities first then venture in to these kind of businesses which neither benefit customers nor the company.

[88_TANK_88]

A lot of the listed cars (diesel) are 6-7 years old or more. Looks like PPP has acquired the fleet for cheap due to 10 year rule in NCT and is now expanding to states/cities without these restrictions. A good way to enlarge the fleet IMO.

[coolmind]

I see it as yet another company which will be shut down very soon, like Zoom Car.
The prices mentioned are too high and any person can plan for an EMI, own a car.
The only customers I could see are the people who move very frequently and that too in between tier-1 cities. That would anyways be very less in number.

[ike]

I wish there were serious attempts to unlock the full potential of the leasing market. Whenever it picks up it will be very disruptive. Remember when mobile phones were launched the device and the plans were prohibitively expensive, but it has been rationalized over a period of time. I hope something similar happens in the car leasing market as well.