Self-drive mobility platform, Zoomcar, recently rolled out a subscription-based model under ZAP – its flagship fractional sharing program. ZAP Subscribe is an extension of the existing ZAP program and it enables individuals to subscribe to new or existing cars at a fixed monthly fee. The model aims to provide flexibility and convenience along with easier access to a vehicle.
With subscriptions starting at under 20k a month, one can save more by sharing it on Zoomcar when the vehicle is not in use. The tenure offered to ZAP subscribers are of six, twelve, eighteen and twenty-four months.
Speaking on the launch of the Zap subscription model, Greg Moran, CEO & Co-founder, Zoomcar said, “In the last several years, India has witnessed a remarkable mindset shift where access is now valued over ownership. ZAP Subscribe leverages this phenomenon while also infusing elements of the shared economy to provide a dramatically reduced cost to access a personal vehicle.”
He further added, “Our primary objective of Subscribe is to leverage technology and data science to reduce all elements of friction for the subscriber.”
Some of the advantages of the ZAP subscription model includes:
ZAP subscribe requires zero down-payment
Buying a car requires a lump sum payment being made upfront. For instance, a car worth ₹8,00,000 with a down-payment of ₹1,50,000 and a loan amount of ₹6,50,000 at 10.5% interest for a period of 5 yrs will cost ₹9,88,262.
Car on-road price – ₹8,00,000
Down- payment – ₹1,50,000
Balance amount – ₹6,50,000
Interest paid on a 5 yr loan tenure @ 10.5%* – ₹1,88,262
Total cost of the car – ₹9,88,262
ZAP Subscribe requires none of these, instead users pay only ₹18,999 per month to get a car of choice. This amounts to lower costs than having to shug for a down-payment along with monthly EMIs.
Get your personal car within 48 hours
Buying a car can be a lengthy process as it involves car selection, test drives, registration, paper work, making the payment and more. With ZAP Subscribe users get a car at their disposal with ease as Zoomcar claims to deliver it within 48 hours of making the payment.
One of the most important benefits of ZAP Subscribe, is the absence of the financial burdens that come with a new car – maintenance, car service, etc. This is often the reason users reach out to friends and family to know the running cost of their car and draw upon a comparisons before taking a decision. ZAP Subscribe frees the user from paying anything extra or worrying about any of the above. The cost is included in the monthly subscription fee.
Limited damage liability
Car buyers pay a yearly insurance premium and in case of a Zero Depreciation Insurance, the cost is higher. For instance, in case a customer opts for Zero Depreciation car insurance for a car worth ₹8,00,000, he or she would need to pay ₹25,000 as insurance premium. Added to this is the insurance companies’ clauses of claiming zero deprecation insurance only twice. With ZAP Subscribe, the maximum liability is of ₹10,000, which is less than paying for a car insurance and there is an added benefit of no damage, no additional cost.
A new car whenever you want
Buying a new car means keeping it for a at least a few years before changing it. ZAP Subscribe makes for flexibility and allows users to opt for a 6, 12, 18 or 24-month tenure. Depending on the tenure, one can choose another car for the next tenure.
There is no restriction on the kilometers required to drive one opts for ZAP Subscribe. It’s as good as a personal car, there is no need to calculate how many kilometers you can drive.
Share and save
One of the biggest benefits is an opportunity to save money to pay out subscription costs with ease. Under the subscription model, users can save by listing their car on Zoomcar platform for just 15 days or increase savings by listing the car for a longer tenure.