What is Retail Car Leasing? Benefits for Individual, SMEs
What is Retail Car Leasing? Benefits of Retail Car Leasing for an Individual, Self-Employed Professional, Small and Medium Enterprises in India
Before we get into the in-depth knowledge of retail car leasing, let's first get to know about the concept and how it works. Retail car leasing is a type of product that is designed particularly for self-employed professionals (eg: Doctors, CA, Lawyers, & Architects), small enterprises, and medium enterprises and for an individual to get a car without taking the hassles faced while owning a car such as capital constraints, service, maintenance, etc. This helps the consumers to get a car and drive it for their day to day needs without actually buying one. In addition to this, the consumer also gets the option to switch between models at a particular interval of time.
For consumers who come under this segment, retail car leasing can be very beneficial as with minimum resources they can get hold of a car and utilize it very productively. The lease amount is decided upon certain factors in which consumers will have to pay a fixed amount per month for the decided tenure. In addition to this, for consumers who own small and medium enterprises and add their cars as company assets, it increases the burden in the capital and on the balance sheet. With retail car leasing, it eases off the burden of owning assets and it also can be beneficial during Income Tax Returns as the value of the lease rentals can be claimed during deductions. Hence we at MyNewCar.in have got to you a detailed report on the benefits of retail car leasing for individual, small, and medium enterprises.
Benefits of Retail Car Leasing:
1. Lower Monthly Payments and Zero Down payment
In retail car leasing a car, the monthly payments are quite low or very much similar as compared to the monthly EMI car loan amount. In addition to this, you do not have to pay any kind of down payment to get a car on lease.
2. Value-added Services
The lease offer covers the cost of repair, service and it also comes with a low maintenance cost. Also as most of the cars on lease come with the manufacturer’s warranty during the lease period you do not have to worry about any major repairs. Along with service and maintenance, the lease offer also comes included with the insurance cost.
3. No Hassles with the Existing Car and Multiple Car Options
Once the lease period is over, you will get the option to hand over the car back to the leasing company. You can also opt for another car of your choice and you also get the option to buy back the car.
4. Tax Benefits
The lease payment can be used for tax deductions which proves very beneficial for professionals and business owners as well.
5. Driving the Latest Cars
If you like to drive and get your hand on the latest cars after every particular period. Retail car leasing can be used here as you get the option to choose between multiple car options. This gives you the benefit to enjoy the latest technology, modern features, and safety features in new cars.
What are the main aspects in which the lease amount for the car is decided?
Duration of a retail car lease ranges from 24 months and goes all the way up to 60 months i.e. five years.
Usage (Kilometres) Per Year or Per Month
While opting for a retail car lease you will have to choose a usage limit per month or per year. If the usage exceeds you will have to pay a said amount per kilometre of extra usage.
Make and Model
One of the main aspects while deciding the lease offer will be the make and model of the car you are interested in.
Depending on the city, the on-road cost of cars differs, as we go from one city to another there will be differences in the on-road price. Hence this is also one of the major factors which are taken into consideration as the lease offer will change according to different cities.
Consumers who are interested to get their hands on a car through retail leasing should keep in mind the above factors. Also, the consumer should keep in mind the usage of kilometres and tenure, as higher these values there will be a major difference in the lease amount.
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