Having an expensive car is quite a statement in India. Have you even have heard of the lease option for your next BIG car. Chances are that you haven’t till now!. Leasing basically works around zero down payment and the tax benefits for the car buyers . It’s a win – win situation for you and the leasing organisation as you enjoy zero down-payment and affordable monthly payments and the leasing company receive the depreciation benefits!
Lets tell you a way to drive your next BIG car for zero initial cost with similar total cost without the hassle of selling your car after 4 years!
On a typical 10 lac rupee sedan, a 90% loan of 48 months would entail a Rs. 2,75,000 down payment (10% of ex-showroom price + Registration + Insurance + 1 EMI) and a monthly payment of about Rs. 23,000. Compare that to a lease option on the same car where there would be no down payment and a monthly installment of about Rs. 25,000. You can have the car transferred to your name at the end of 48 months for Rs. 2,00,000 (20% residual value). Simple math would show you that the total payments in the loan option came up to Rs. 13,79,000 while in the lease they were Rs. 14,00,000. Factor in the opportunity cost of the Rs. 2,75,000 down payment (approximately Rs 80,000 considering an interest of 7.5%) and the fact that the entire lease EMI is tax deductible (versus only the interest part of your loan EMI) and you can gauge why lease offers a great proposition. It is worth a mention at this stage that most benefits of lease plans are applicable to companies, small and medium sized businesses and professionals like doctors, chartered accountants.
Scheduled maintenance, accidental repairs, insurance management, fuel management and chauffeur services can be included within the lease plan!
- There is no down payment in a lease. Therefore, it is freed up capital which you could otherwise use for investing in your business interests.
- Full income tax exemption.Monthly rental deducted from pre-tax income.
- The car is taken care off with periodic servicing, Breakdown repairs, accident repairs, Tyre/Battery change
• Most popular lease organisations provide you with the option of transferring the car to your name at the end of the lease tenure. This is typically carried out at a pre-decided rate OR Market rate of the car (whichever you decide at the beginning of the lease term).
• Modifications to the vehicle are not generally permitted. You can, however, add accessories at the start of the lease tenure.
• In the case of an operating lease, limitations may be imposed on the annual mileage.
• The car is not registered in your name. Not at least until you buy it at the end of the lease period.
Still need more information, visit our website and request a callback, we would be happy to help you with options www.mynewcar.in
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