Car leasing in India is not very popular in India when compared to developed countries. Revv, a brand in India now offers cars from popular brands Maruti, Hyundai, Tata, Mahindra and many other brands in the market. Revv currently offers three vehicles from Mahindra – Scorpio, Marazzo and the XUV 500. The lease plans, which the brand says is a monthly subscription plan ranges from a minimum of 12 months to a maximum of 48 months. A brand new car is assured with the plans. If the customer wants to choose from used car plans, Revv offers vehicles that are less than a year old. However, we will only compare the new subscription plans for new vehicles and will compare with the ownership cost of a brand-new vehicle. All the mentioned details are for 48 months EMI and subscription. After the end of 48 months, the buyer will need to either give up the vehicle and get a new subscription or will have to pay a fee to retain the vehicle. The below-mentioned costs are including the transactional fee required to own the vehicle.
The Mahindra Marazzo has gained a lot of popularity in the market after it was launched last year. The all-new vehicle takes on the likes of Maruti Suzuki Ertiga in the market. All the variants of the Marazzo are available for leasing and we are considering the 7-seater version of it. As per the website, to take the Marazzo on the lease, a first year upfront payment of Rs. 62,415 is needed to be made as first-year insurance. For the first 12 months, the monthly fee is Rs. 32,890 and post that till the 48th month, one needs to pay Rs. 27,290. As per the Revv website, owning the vehicle will cost Rs. 18,50,527 while subscribing it monthly will cost Rs. 18,98,782 by the end of 48th months.
Mahindra Scorpio is one of the most popular vehicles in the Indian market. For the S3 2WD variant of the Scorpio, one needs to pay Rs 57,000 upfront as first-year insurance fee and a monthly charge of Rs 30,290 for the first twelve months. Post that, the monthly subscription fee comes down to Rs 25,090 each month till 48th month. If the customer decides to buy the vehicle after the end of 48 months, the total cost of the vehicle will be Rs 17,56,144 while if someone buys the vehicle, it will cost Rs. 16,62,283 including the service charges after the end of 48 months.
Mahindra XUV 500
The Mahindra XUV 500 W5 variant is available for leasing with an upfront payment of Rs. 71,565 as an insurance premium for the first year and monthly charges of Rs 35,590 for the first 12 months. From 12th to 48th months, the charges drop to Rs 29,190 per month. At the end of 48 months, the leasing plan costs Rs. 20,57,117 while the ownership cost comes to be Rs. 21,01,923.
Should you get it?
For more expensive variants and vehicles, the leasing turns out to be more beneficial. In the case of XUV 500, owning the vehicle is about Rs 40,000 more expensive than leasing, which does not hold true for the more affordable vehicles. It should be noted that the leasing vehicles get the commercial numberplates and not the regular white background numberplates that we get to see on the private vehicles. Such commercial numberplates need to pay state taxes when they cross the state borders.