Use and discard seem to be in vogue these days. Perhaps that is
the reason why youngsters are continuously looking for a change in their lives,
whether it is a tangible product they possess or a technology they have come
across. Even when it comes to ownership of cars, one can witness a paradigm
Various surveys have suggested that the average ownership of first
hand used cars has been dramatically decreasing and has come down to
approximately 24-30 months. It is here that Sameer Kalra, a car leasing expert and Co-Founder of PumPumPum argues
that leasing a used car is far better than buying one.
As compared to buying and maintaining a car for 24 months, a
leased car for 24 months turns out to be extremely affordable and hassle free,
he claims. PumPumPum is the only company in India to offer used car leasing in
corporate and retail segment.
Issues related to lack of trust on dealers,
low penetration of financing in used car space, risk of repairs in a used car,
non-transparent pricing (lack of standard price parameters), low resale value
of the third hand used car resulting in high rate of depreciation are some of
the factors pushing the growth of used car leasing in India.
There are various reasons for consumers to
prefer leasing over buying a used car, says Kalra. Kalra’s
arguments are as follows:
Leasing vs Buying a used car: If you belong to the league of those who always likes changes,
and gets bored with one thing if used for too long especially when it comes to
cars, then Leasing is meant for you. Leasing a car simply means that for an
agreed amount of time and money, one can lease (pay for the use of) a car of
their choice. Owner of a leased car is a temporary owner of the car until the
agreed upon time period after which the person can look for another new car to
lease and have a completely new experience or can even purchase the old one for
the resale value. Worldwide consumer insights show that the interest for used
car buying is drastically decreasing.
No concerns regarding the depreciating value of the vehicle: If you are leasing a used car there is no need to worry about the
depreciation value of the car. While leasing a car, there is very low or
sometime no down payment. In case of an old car purchase there may be no
guarantee on the reliability of the car.Hence the amount spent on repair and
maintenance may significantly increase depending upon the condition of the car.
Warranty period does all the work for you: When leasing a car, the concerns regarding the maintenance and
repair costs are eradicated as everything is covered in the warranty period. If
the car is purchased from a private party, there may be no warranty on it. The
dealership may offer their own warranty programmes, but in the case of private
party purchase, these things can be missed out and in fact not made available.
Drive your dream car: With a wide range of good quality
cars available for Used Car Lease, you can easily drive home your dream car. If
you are opting for buying a used car, the choice and selection of the car and
its model may be limited, because not everyone sells their car. So, you have
limited options to choose from. Hence finding a car with the features and
options you like can be a bit more difficult with an old car buying.
Hassle free experience guaranteed: With the option of Leasing a used car, one can get a guaranteed
hassle-free experience at the end of the agreed upon time period. You don't
have to worry about the sale of the car or the current value. The dealer takes
care of the whole process. All you have to do is to hand over the keys and
upgrade to another used car you had your eye on.
Click and Collect: Use Car leasing can seamlessly take
care of all the Used Car Owner’s risks such as repair, maintenance, tyres,
batteries, car resale value, insurance etc. for a safe and comfortable travel
with a hassle-free ownership. In this era of click and collect, one can easily
get pre-owned cars at an affordable and flexible subscription for short to
long-term durations without any hassles of service & maintenance. Wherein
with the concept of Used Car buying, right from the selection of car to
paperwork, repair, insurance, loans, there is a long list of tasks and risks