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Car Loan vs Lease vs Subscription

Loan = traditional ownership; Lease = monthly fee, return at end; Subscription (BluSmart, Tata SmartLeasing, MG ZS Subscription) = all-inclusive monthly with insurance & maintenance bundled.

₹15,00,000
5 yrs
9.5%
7 yrs
₹28,000
₹1,50,000
₹38,000
40%

Loan + Resale

₹8,76,767
EMI ₹19,613

Lease

₹16,80,000
Deposit ₹1,50,000

Subscription

₹22,80,000
All-inclusive

Loan + Resale is the cheapest over 5 years.

FAQ

Subscription pros and cons?

Pros: zero down, all-inclusive (insurance, maintenance, registration), can swap cars. Cons: higher monthly outflow, no equity at end, mileage caps usually 1500-2000 km/month.

Lease vs subscription — what's different?

Lease = long-term, fixed model, often 36-48 months. Subscription = month-to-month or yearly, flexible model swap, includes services. Subscriptions are more flexible but pricier per month.

Why do most Indians choose loan?

Cultural ownership preference. Equity at end is real (resale 30-50% of original). Lease/subscription is gaining ground for short-term needs (corporate transfers, expat use).