Zoomcar Associate Program FAQ

Zoomcar, one of the most popular self-drive car rental company, has now come up with an interesting offer, letting the consumers lease their own car on the platform of Zoomcar. This program is called Zoomcar Associate Program (ZAP) and lets anyone buy cars and lease it to Zoomcar for running it as a self-driven rental car. Another interesting point is, anyone can add one or more cards and lease it to Zoomcar to operate on a revenue-sharing model. This scheme looks like a boon for those, who aren’t able to get much profit while running their cars as private cabs. However, the notable thing is, Uber & Ola are still more profitable and gives a better return, but with the pace Zoomcar is rising, surely we can expect some great returns in the upcoming years. Here’s some official information provided by Zoomcar:

Zoomcar Associate Program (ZAP) FAQs

Purchasing the vehicle

  • I have an existing car with me that I want to lease to Zoomcar under ZAP. Is Zoomcar
    willing to accept that car?

Unfortunately, currently we are not looking at bringing cars that are not brand new onto our platform, primarily due to the complexities of the regulatory framework we need to work under. At a future date, if regulation becomes more favorable, we may consider this.

Zoomcar Associate Program FAQ
Zoomcar Associate Program FAQ
  • Why is Zoomcar accepting only certain car models under ZAP?

Zoomcar sets a high bar for the car models that we provide to our customers on the platform with regard to the quality of the car, projected demand, running cost as well as the service network. We have thus chosen cars that we think will run well on the ZAP platform. Further, these car models have great resale value in the market whenever you wish to sell them, which helps enhance your returns. As we expand the program, we will add more car models
under ZAP.

  • Why does the invoice and registration of the car need to be under Zoomcar’s name? Doesn’t that mean that Zoomcar owns the car?

The requirement for registration of the car under Zoomcar’s name comes from the Motor Vehicles Act, which states that if a car is leased, it needs to be registered under the name of the lessee (in this case, Zoomcar). Further, the registration process mirrors the details on the purchase invoice of the car, which means that Zoomcar’s name must show up there too.

However, it is very clear that you are in fact the owner of the car, given the fact that i) you have paid for the car, and ii) Zoomcar can only operate the car in accordance with the terms of the signed agreements, and you can, in fact, take the car back (with the notice period as per the agreements) and do whatever you want with it. Thus, actual ownership of the car is with you. Further, we explicitly acknowledge your ownership of the car in the documents we sign together.

The Supreme Court of India has also passed a judgment in the case of I.C.D.S. Ltd. vs. CIT (2013) that while the Motor Vehicle Act requires the vehicle to be registered under the lessee’s name, the owner of the vehicle remains the lessor, so your ownership of the vehicle will never come into question.

  • I want to take a loan for purchasing the car from my existing bank rather than Zoomcar’s financing partners. Is that possible?

We have spent extensive time with our financing partners on explaining ZAP to them and getting the best loan deals possible for you. Thus, we would recommend that you take a loan from our financing partners, to speed up the process.

  • Do I have to undergo the hassle of getting the car registration, permits & licenses, insurance, etc.? Can Zoomcar help me with the same?

Zoomcar values your time and will handle the entire process of purchasing the car (including accessories, insurance, RSA, etc.), registering it and getting all relevant licenses and permits (whether initially or renewals, thereafter), to make it hassle free for you. As per the agreements, however, you will be paying for the same (at cost – Zoomcar will not charge a markup or service fee for helping you with any of these).

  • What ‘in-car devices’ will Zoomcar be installing in the car?

Zoomcar installs certain devices in the car to give our customers a better experience and also assist our operations. Currently, we install a GPS-tracking device, a keyless entry (KLE) device and an engine immobilizer. Zoomcar will cover the entire cost of the devices and installation.

Running the car on the Zoomcar platform

  • Can the car be parked at my house instead of a Zoomcar parking location?

At Zoomcar we rate customer service very highly, and part of the customer experience is the cleanliness and maintenance of the car, as well as on-site support if anything goes wrong. Unfortunately, if the car is parked at your location, we will not be able to effectively provide this support structure for our customers, so parking the car at your house/other chosen location would not be possible.

  • Who will take care of the maintenance of the car?

As above, Zoomcar will manage the cleaning, servicing, and repairing of the car. As per our agreement, for the regular servicing and repairs of the cars (including replacement of wear and tear parts such as tires, seat covers, etc.), we will be passing on the cost to you. In fact, with our partnerships with workshops, we are able to get priority service at discounted prices, the benefit of which we pass on to you in terms of lower bill values!

  • What happens if the car meets with an accident? What happens if the car is stolen?

We mandate that our Associates providing cars on the ZAP platform obtain a comprehensive insurance policy for the car that, apart from the standard own damage and third party coverage, includes coverage for zero depreciation, engine protection, consumables and theft.

Thus, in the unfortunate even that the car meets with an accident; you will not have to bear any cost or hassle for the repair, given the comprehensive insurance policy you have on the car (the deductible on the insurance policy will be recovered from the customer).

Zoomcar will manage the repair of the car. In the event, the car is declared a total loss (i.e., the cost of repairing the car is close to or higher than the value of the car itself), the insurer will reimburse you the IDV (insurer declared value – this starts at 95% of the price of the car and reduces by 20% each year thereafter) of the car.

As regards theft of the car, we see an extremely low probability of this happening, given our experience till date and the monitoring of our cars. However, in the unfortunate event that the car does get stolen, Zoomcar will help manage the standard procedures of filing an FIR and using police assistance to recover the car.

If the car is not recovered, however, the insurance provider will reimburse you the IDV of the car as per the insurance coverage (under clause IMT 43).

  • Why does Zoomcar require a Roadside Assistance Program (RSA) for the car?

Zoomcar customers frequently take our cars for outstation travel. In the event that the car breaks down for some reason, or meets with an accident in any location, whether in-city or outside, the RSA provider helps tow the car safely and quickly to the nearest workshop for repair. Ultimately this ensures that your car is safe and can get back on the road as soon as possible.

  • Will I have to take care of the renewals for insurance, road tax, RSA, etc. on the car?

To make the process hassle free for you, Zoomcar will take care of all of these renewals. Of course, you will have to pay for these as per our agreement. We will inform you in advance of the renewals along with relevant quotes so you can prepare for the payments. Our only request would be that you pay for these in time, and we will take care of the rest!

  • What happens at the end of the lease period?

At the end of the lease period, Zoomcar will take out the devices we have installed in the car and return the car to you as is. If you desire to use the car on your own after the lease tenor is over, then we will help with re-registering the car in your name. If you desire to sell the car, we can assist you through our network to sell the car and achieve the best price possible.

Financial Considerations

  • What returns can I expect from providing a car on ZAP? Are there any minimum guarantees that Zoomcar will provide me?

Please refer to the financial model (download here) for details on projected returns from the program. To protect your returns in the event the revenue generated from the car is not substantial in any month (for example, if the car is stuck in the garage for a long period of time) and ensure that you are not out of pocket on your EMI in any month, Zoomcar guarantees a minimum monthly payment of 3% of the ex-showroom price of the car to you.

Note that apart from VAT which we will have to charge and deposit to the authorities, Zoomcar will make no further deductions from this 3% payment to you.

  • What taxes are applicable on the rentals I earn from Zoomcar?

VAT is chargeable on the rentals Zoomcar will pay you monthly. If you are a registered dealer under VAT, then we will pay you the gross rental amount, and you will be liable for depositing VAT with the authorities. If you are not a registered dealer, then Zoomcar will deduct the applicable VAT amount from the rentals and remit the balance to you. Service tax is not applicable on the rentals we pay you. Further, TDS at the applicable rate will be deducted from the payment Zoomcar makes to you.

Note that since this rental income is classified as business income, you will be able to claim depreciation on the car and reduce your tax liability.

  • How will I know whether the monthly lease rental Zoomcar is paying me is correctly calculated?

Zoomcar follows a transparent process of maintaining records of the trip (including the corresponding revenue), fuel bills and service and repair bills for calculating the monthly amount to be paid to you.

We will also share copies of these bills with you so you can verify them yourself, if you so require. Over time, we will develop an “owner’s app” which will allow you to check your car metrics in real-time. That will likely come only later this year however.

  • How do I pay for the EMI every month? Can Zoomcar handle this process for me instead?

Typically, lenders will ask for an ECS mandate from you while disbursing the loan and the EMI will be deducted automatically from your account on the due date. Thus, the process will be hassle free for you. However, if the lender asks Zoomcar to deduct EMI from the amount payable to you and deposit this amount directly to them, then Zoomcar will do the needful. In such a case, if there is any shortfall in EMI for any month, we will make sure that we notify you so you can pay the remaining amount to the lender.

An optimist to the core, I always see the glass half full. I like to take life as it comes and not to become too serious on the harsher aspects of it. Apart from this, I am an Engineer, a Blogger & a Researcher....

Join the Conversation


  1. zoomcar

    i want join your business plan i also mail you kindly please contact with me

  2. i want join your business plan i also mail you kindly please contact with me & Whom should I contact for the joining process send details..
    Please contact me @ 9871476663

  3. i want add car under zap program .

    i deposit 990 Rs in under zap program for registration but no phone call is coming afterwords and I trying your customer care number not a single phone is working in bangloor and also in Delhi . pls guide me how I go further.
    vikram sharma from delhi .

  4. Dont waste your hard earned money in zoom car

    Anybody intrested in getting associate with zoom car plz plz plz dont do this mistake. I am an existing associate with this company. This company is very unprofessional. Every month i am sufferring huge losses. As per policy of zoomcar whenever it comes to pay from their pocket these people try to shift the responsibilty on associate. Dont waste your hard earned money by investing in zoom car

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