Should You Buy or Lease a Luxury Car in India? Pros and Cons
IS IT BETTER TO BUY OR LEASE A LUXURY CAR IN INDIA? BEST FINANCE OPTION
Leasing a luxury car can be a more affordable option to go for, while you want to enjoy a truly rewarding experience of driving one. Luxury car brands like Mercedes Benz, BMW, Audi, Jaguar Land Rover, Volvo are loaded with features, technology and offer a lot of style, comfort, and sophistication.
Considering the high prices of luxury cars from 40 lakhs to all the way up to a few crores in India due to various reasons, purchasing a luxury car is an important decision for car buyers. Every luxury car buyer has to go through different aspects while considering to buy one and thinks about the down payment, insurance, registration charges, handling charges, resale value and other additional costs like vehicle depreciation of these high-end luxury cars. Then also comes its service, maintenance and other additional cost of ownership. As these luxury brands are heavier on the pocket due to their running costs, you can always consider leasing one.
Buying vs Leasing - What Are The Advantages of Leasing a Luxury Car?
When you lease a car, there is no need to pay any money as down payment. You can simply drive your luxury car by signing a lease agreement as compared to paying a hefty down payment of up to 20% in case of car loans for luxury cars
Incase of leasing, you can opt for an all inclusive lease contract with fixed monthly pay-out including insurance, service, maintenance with tyre, battery replacement,engine damage protection, 24/7 emergency roadside breakdown assistance, pick and drop facility for services for all years of driving as compared to expensive service, maintenance and repairs while owning a luxury car
Leasing a luxury car can be more affordable with lower monthly payments based on your budget as compared to buying a luxury car with finance
Incase you are eligible for a company car, own a business or are a practising professional like a Doctor or CA, you can avail tax benefits while leasing a car instead of paying cash or financing a luxury car
Option to purchase your luxury car at the end of lease period for the fixed residual value (depreciated price of the vehicle)
You need to maintain the car in very good condition for getting the best resale value while selling after use incase of buying a new car
Selling or Exchanging your luxury car after use can be a big hassle to get the best price and the right owner.
Buying vs Leasing - What Are The Disadvantages of Leasing a Luxury Car?
Leasing a luxury car be expensive if you want to have the same car for a longer period over 5 years as the vehicle depreciates the most during the first 3-4 years. Incase you purchase a car, you would essentially drive it payment-free after you've paid off the loans.
- Most lease contract have included driving limits between 10,000 and 20,000 km per year. Anything over this, you will have to pay extra per additional km driven
- As incase of car leasing you dont have to pay any downpayment to get the car, most leasing companies requires you to have a good credit rating and a stable financial situation. So if you have a bad credit score, don't think about leasing a car
- At the end of a lease contract, you will have to return the vehicle in the same configuration as you got it. So, incase you would like to customize your car, leasing a car would not be recommended.
- Leasing a car is like signing any rental agreement with penalites incase you want to terminate the contract before the end of the agreed period.
Is Leasing a Luxury Car a Better Option Than Buying? Ask Yourself These 7 Questions
- Is the prestige of driving a luxury car important to you?
- Are you planning to keep the new luxury car for less than five years?
- Are you concerned about the high insurance, service and maintenance running cost of luxury car during the 5 years of ownership?
- Do you drive less than 20,000 km per year?
- Do you hate to sell or exchange your used car after 5 years?
- Are you eligible for company car allowing you to save money?
- Do you have your own business or are a practising professional e.g., Doctor, CA to be eligible for tax benefits?
If you have answered “yes” to quite a few of the above questions, leasing a luxury car might be a right option as compared to buying one. Get your free car lease quote today and avail attractive lease deals and offers on luxury cars.
Explore MY NEW CAR.in. We are an online marketplace which simplifies the car buying process by providing a transparent, convenient & safe purchasing experience. You can get Brand neutral expert advice, Search Cars, Compare Cars Online, Book a Door-step Test Drive with a click, Get On-Road Price, Offers & Discounts and Book your new Car Online.
We also bring Latest Automobile News for our readers including Buying Advice, New Car Launch Updates, Car Offers, Reviews and much more. Not just that, MYNEWCAR.in also provides you with car maintenance tips and car driving tips for your car.
LEAVE A COMMENT