UNDERSTANDING THE TERMS
- Lease: Lease is an alternative way of acquiring any vehicle other than the Traditional model of Bank Loan or Outright purchase.
- Operating Lease: Instead of Paying for the whole cost of the Car and building the asset, Operating Lease brings the viability of paying only for the usage value of the Car, based on pre decided Tenure and Kilometers.
- Lease Rentals: The amount payable by the client to Leasing Company for the usage of car for specified period and contracted mileage. Lease Rentals are inclusive of vehicle cost, Insurance, Maintenance and cost other services opted for. At the end of the lease period the asset is returned back to the leasing company.
- Lease Tenure: The period for the vehicle is contracted for lease.
- Resale Value: The expected resale price of the vehicle at the end of the Lease Tenure. The benefit of this amount is worked out into your rentals and thus the proposition becomes better than a loan EMI.
- Contracted Mileage: Contracted mileage is a pre-agreed mileage at the start of the contract. In case you exceed the agreed mileage, any additional kilometers travelled beyond these limits will be invoiced in accordance with the vehicle lease contracts which will be in addition to the monthly lease rental.