[TusharK]

Volkswagen has partnered with ORIX Auto Infrastructure Services Ltd. to offer the Taigun on a monthly subscription basis.



The monthly rental for the Taigun starts from Rs. 28,000. The car can be subscribed for a period of 24, 36 and 48 months and will come with 100% on-road financing, periodic maintenance, insurance cover and an option to upgrade or return the car at the end of the lease period.

Customers can choose from the Dynamic Line and GT Plus variant of the Performance Line. The car will come with a white number plate.

The Taigun will be available at 30 VW outlets across Delhi NCR, Mumbai, Pune, Ahmedabad, Bangalore, Chennai and Hyderabad. Volkswagen also offers the Polo, Vento and T-Roc on a subscription basis.

Link to Team-BHP News

[1.2TSI7DSG]

This roughly translates to 28k*48 months that is around 13.44 l. This will be the cost for the base variant.

Still does not really make a compelling argument unless you are scared of getting a lemon in which case the maintenance will be taken care of by VW.

[malim]

Originally Posted by 1.2TSI7DSG

Still does not really make a compelling argument unless you are scared of getting a lemon in which case the maintenance will be taken care of by VW.

Absolutely. And if you're in it for the joy of a DSG without the maintenance nightmares then you'll have to shell out upwards of 50 grand per month (48 month duration, 10,000 km/year).

[Porcupine]

Originally Posted by 1.2TSI7DSG

This roughly translates to 28k*48 months that is around 13.44 l. This will be the cost for the base variant.

What exactly does this solve? Is it not cheaper to get a regular car loan if you're paying the cost of the vehicle anyway?

[vhharan1]

Why would someone rent a car, when the cost of renting is almost the same as a Loan EMI/Month. Always strikes me, as what is the catch or the bait for someone to actually move to this model than owning & selling then renting & giving off.

[ramnaresh_2000]

Originally Posted by Porcupine

?Is it not cheaper to get a regular car loan if you're paying the cost of the vehicle anyway?

Originally Posted by vhharan1

Why would someone rent a car, when the cost of renting is almost the same as a Loan EMI/Month.

I was thinking exactly the same couple of years back. Then one of my colleague got transferred to different state. He sold his vehicle here and took subscription of new vehicle in the new state. His project will last for 1-2 years. He said I don't have to deal with cops stopping always, as my old vehicle has different state plates, don't have to worry if something goes wrong with my vehicle. I don't have to worry about service and maintenance. If something goes wrong, I will get a new vehicle. It did made sense in his point of view.

Also there has been a trend these days, where some rich kids started changing vehicles every year. It makes sense for such spoilt brats

[lsjey]

Originally Posted by TusharK

The monthly rental for the Taigun starts from Rs. 28,000. The car can be subscribed for a period of 24, 36 and 48 months and will come with 100% on-road financing, periodic maintenance, insurance cover and an option to upgrade or return the car at the end of the lease period.

The cost will be higher than Rs. 28K multiplied by 48 months. When you own the car, you get resale value. If you give up the lease/upgrade, you don't get this. Also, AFAIK there will be costs if you decide to buy the car after the lease period (Residual value or something.)

Experts can correct me if I'm wrong. IMO, this will be useful for people who are looking for a temp car for a short period of time.

Regards,
lsjey

[ike]

Leasing costs are currently very high in our country. Hopefully as more people get into this model the prices will become affordable. Remember when mobile calls used to cost 20 bucks/minute, the car leasing market is in that stage presently. There is good potential for the leasing market in India. If a popular hatch like a swift is made available at around 10k a month and you have to pay only for the fuel over and above, that would make it a very attractive proposition.

[Geta]

My eyes widened with disbelief when I read the thread topic. Tiguan for Rs 28,000! Mouthwatering!

I clicked on the thread and realised it was the Taigun!

I have been misreading these names for more than a year now, despite being an enthusiast. I honestly can't understand how Volkswagen assumes that a casual reader/ average car buyer won't misread these names.

[GTO]

Originally Posted by vhharan1

Why would someone rent a car, when the cost of renting is almost the same as a Loan EMI/Month.

Only for companies & businessmen, it makes a bit of sense (although nowhere as tempting as car leasing in the USA is).

1. 28000 * 48 = Company pays 13.44 lakhs over 4 years

2. 13.44L * 30% tax benefit = 403200 straight tax benefit as monthly lease is written off as a business expense.

3. The 7 - 10 lakhs saved on the car's down payment can be reinvested into the company's own business, or other investments (e.g. mutual funds). 10 lakhs can be made into 16 lakhs by the end of 4 years, assuming you are able to manage 12% returns on it every year (not too difficult with your own business or in the markets). More humbler + safer investments will convert that 10 lakhs into 13.5 - 14 lakhs (including FDs when rates were better).

4. Then, there is the money saved from maintenance, insurance etc. IIRC, even tyres & batteries are included in most such leases.

Leases only make sense to companies & businessmen today. But what we really need are consumer leases as cheap + irresistible in the USA. I've seen great cars in the USA being leased even for $200 a month.

[1.2TSI7DSG]

Originally Posted by GTO

Leases only make sense to companies & businessmen today. But what we really need are consumer leases as cheap + irresistible in the USA. I've seen great cars in the USA being leased even for $200 a month.

The entire pricing assumption that these cars are leased on is that no one would lease a car beyond 5 years ( or for that matter there would be no second lease after 3/4/5 years)
If you break cost of the car over say 10 years, it would be mouth watering (may be a higher payment in the first 3 years, 3-6,6-9 keep on decreasing).

Even if they start leasing a 4 year old car, it would make immense sense. But then by the experience of zoom cars and Myles etc, indians treat rented assets as dirt. Hence may be we are not ready yet.

[gnome]

Originally Posted by 1.2TSI7DSG

But then by the experience of zoom cars and Myles etc, indians treat rented assets as dirt. Hence may be we are not ready yet.

Other than what you rightly said, it is pathetic road infrastructure here that makes it easy to abuse cars. Unless cars are treated very gently, it is easy for a 4-year old car to be effectively 10-year old. Leasing has to accommodate this. In US, you have to try really hard to abuse an car.
One way companies here can accommodate this by having buy-back at end of lease, and price can vary depending on vehicle condition. May be it's too complex!

[84.monsoon]

I searched around the internet, including the VW and the ORIX sites and cannot find a website or form to actually price the monthly subscriptions of the various Taigun variants. If the Rs. 28000 rental is for the base comfortline 1.0 MT model (which is priced around 10.5 lacs), does the subscription also scale up to about 70% higher monthly cost for the 1.5 dsg model? There are no answers to be found! I wish VW/ORIX would provide a proper "build and price" option to see the subscription rates for the various variants.

[RishavRBhardwaj]

Honestly, I do not foresee a very bright future for Car Leasing in India. Cars here are a matter of pride, something people often attach their self-image to. Leasing a car must be a very smart financial decision, but it doesn't 'feel' that prestigious. (To me atleast).

Also, A leased vehicle will never receive the same amount of love that owned vehicles get.