Car Ownership Cost: Get the Best Value

Calculating the overall cost of ownership and the future value of your car can be an exercise in frustration. Accounting for every cost associated with your car today as well as in the foreseeable future, greatly complicates the picture.

In today’s economic climate, it has become even more important to understand the costs of different ownership models and calculate the future value you will receive from your car. We have earlier compared the ownership costs of buying a used car with Spinny Buyback against subscribing to a car or buying a new car. Many charts and tables were involved, and if you weren’t looking at it careful, you could miss the finer costs involved in every ownership model.

To simplify this comparison, we’ve graphically visualized the cost of ownership or future value of the respective ownership models. For a complete cost breakdown, please do refer to our previous article on the economical cost of ownership.

Buying a New Car: Decreasing Future Value

When you buy a new car, the most immediate hit to your car’s future value will be depreciation. It is well-known that a car depreciates in value as soon as it is sold. Over a period of two years, every new car loses as much as 30% in value.

Depreciation directly impacts a car’s resale value and when combined with costs such as insurance, road tax, and maintenance, the overall resale value may be even lower than expected.

Car Subscription: Increasing Costs

Car subscription has emerged as an attractive short term ownership model that advertises low ownership costs. While it is true that ownership costs are low for a month of driving, for longer periods of ownership, the cost of ownership becomes excessive.

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The reasonable monthly cost of ownership quickly adds up over the ownership duration. For a short ownership period of two years, the total ownership cost ends up being more than owning your own car.

Spinny Buyback: Best Value

Buying a used car also comes with many of the pitfalls of buying a new car. The uncertain future resale value and the added cost of depreciation appear as restricting factors when considering used cars. However, when bought with Spinny Buyback, a used car becomes a more cost effective way to own a car for a short period of time.

Used cars generally have lower rates of depreciation as compared to new cars. A short ownership period of two years could see the car’s value only reduce by 15-20%. Additionally, the buyback value ensures a guaranteed resale value at the end of the ownership tenure. This significantly lowers the total cost of ownership and provide savings up to, but not limited to, a lakh.


Owning a car in the new normal is now a more financially driven decision than before. Considering all the costs involved in your car ownership gives you a degree of financial freedom for the future. While used cars have always been economical investments, buying a used car with Spinny Buyback provides additional savings for short term car ownership.

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