Do you want to use a car without actually owning it? Have you considered leasing?
Leasing a car is when a person uses a car for a specific period of time and pays a lease amount to the lessor. There are two kinds of leasing models: financial lease and operating lease. In a financial leasing model, the car is returned to the lessor at the end of the specific period. In an operating leasing model, the lessee can buy or return the car at the end of that specific period.
Many individuals are now venturing to lease a car in India instead of buying it, as automobile companies are leasing brand-new vehicles ranging from 6 months to 5 years. In fact, the down payment is minimal and reputed companies like Skoda, Hyundai and Maruti are also leasing their products.
These are the 4 major benefits of leasing a car
These are the 3 things you need to remember when you lease a car.
Let's make a realistic comparison between leasing and loans
Let's the case of 'A' and 'B'. 'A' decides to lease a car, whereas B decides to loan a car.
A spends a total of INR 5,40,000 in 3 years. But here comes the good part. A can get a tax benefit of 30%, which reduces the actual price spent to INR 3,78,000.
Of course, here we see that leasing is cheaper. However, if you want to buy the car from the lessor, you must pay a certain amount to him/her, according to the market rate. One must also keep the resale value in mind.
Lease rates in different cities vary from approximately INR 11,000 to INR 50,000 per month, depending on the contract.
If you have a fetish for cars and want to try different models, then leasing seems like the preferred option. However, it depends on what kind of agreement you want to get into.
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