Drop the taxi and rent a car

Are you flying into Mumbai or Chennai on business for a few days and need to be mobile? Like most people, you might look for a taxi to get around. But there is an alternative that could save you both time and money: self-driven car rental services.

Fleets and rents The car rental business is still nascent in India. Companies such as Carzonrent, Selfdrive, Avis, Eco Rent a Car and Zoom Car operate within select cities and States.

So, by and large, the option to rent a car instead of hiring a taxi is restricted to large cities such as Chennai, Bangalore, Delhi, Mumbai, Kolkata, Pune and Chandigarh. Further, since vehicle rentals have not yet achieved critical mass, you are likely to find a larger variety of models in some cities than others.

While Carzonrent offers everything from the Mahindra e2o (at ₹900 per day) to the Toyota Fortuner (₹4,999 per day) in New Delhi under its Myles self-driven car service, you would only have the choice of a Maruti Swift, Toyota Innova or Volkswagen Vento in Chennai, with rentals from ₹1,299 to ₹2,199 a day.

Currently, the fleet size is limited and therefore, booking early makes sense, particularly if you wish to keep costs down. According to Carzonrent Executive Director Sakshi Vij, out of the 20-25 day availability window across its 250-strong Myles fleet, utilisation is presently around 75 per cent, with business travellers and holidayers the main client base.

When you are toting up the cost, rental aside, do factor in value-added tax to determine the final cost. Next, while the initial load of fuel is free for daily rentals, you will have to bear the additional petrol or diesel costs.

Besides daily rentals, some companies also offer cars at hourly rates but this generally comes with a minimum billing amount. For example, in the case of a Maruti Swift VDI model, the rental is typically ₹250 an hour but the minimum billing amount is ₹500 for two hours.

Add in 14.5 per cent VAT, which takes the total rental cost to ₹573. Further, there is a cap on the distance that can be travelled by vehicles rented on hourly basis, which is usually 25 km an hour, after which you pay extra.

Finally, there is some form of refundable security deposit or a pre-charge on your credit card to ensure that the vehicle is returned in the same condition.

What’s my saving? Of course, there’s no questioning the appeal of arriving in a flashy rental car to take your girlfriend out for a night on the town instead of hiring a cab. But there are clear-cut scenarios in which it makes economic sense to rent a vehicle instead of hiring a cab.

Let’s plan, for example, a trip from Mumbai to Pune over the weekend. If you rent a WagonR from Selfdrive for two days (the minimum period), the total cost would work out to ₹3,700 plus taxes. The to and fro distance involved works out to around 528 km.

Given that the WagonR’s mileage is approximately 14 km/litre and its fuel tank capacity is 35 litres, you would be able to cover 490 km with the fuel already in the car. So, factor in a refuel of about three to four litres of petrol, which will set you back by about ₹300. Also, take into account toll fees when driving on the highway. Before taxes and fees, costs add up to ₹4,000.

On the other hand, if you go to a local taxi stand, a one-way trip between Mumbai and Pune costs a minimum of ₹1,100 a person if you’re taking a shared vehicle.If you prefer to travel alone in a cab, the fare could be substantially higher.

For example, in Chennai, the minimum fare slab is ₹100 for four km, following which a flat rate of ₹18 a km is applicable. If you want an outstation driver to wait with you at your destination, factor in additional costs for his food and lodging.

So a lot depends on your travel plans. If you are travelling alone, you could probably make do with a small car, or even a cab. If you are a group of people, hiring a people-mover like a Toyota Innova would make greater economic sense, since costs will be split over the entire group and thus be lower. Just remember that the fuel metre and the clock are ticking!

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