Car Auto Lease

How does buying your car with Auto Lease help you save tax?

August 16, 2022 • 5209 views
Author: PoonawallaFincorp Category: Auto Lease

Buying a car is an overwhelming experience especially if it is your first car. While you are planning to buy a car there are several factors that influence your decision. One of the major factors which highly influences your car buying experience is your finances. 
If you are buying a car; there are numerous options available today such as you can buy a car with your own money, either you can take a loan from a bank or NBFCs, you can rent a car for a specific time period, or else you can opt for an Auto Lease. All these options are open to different buyers catering to their unique needs and requirements.
In the case you opt for Auto Lease for your buying a car, you will have to keep certain things in mind. 
Tax benefit is one of the biggest advantages of Auto Lease. With Auto Lease, you avail of tax benefits of up to 30% annually. If you are a salaried individual with an auto lease as a part of your package, the auto lease amount will be deducted from your salary amount before paying the tax.  This will be a relief for you that will further help in reducing your taxable liability. Along with tax relief, there are other benefits mentioned below.

Few advantages of Auto Lease

1.    No down payment:

When you choose Auto Lease, you don’t have to pay the down payment amount. Whereas, at the time of the Loan, you have to make a hefty down payment which directly impacts your finances. 

2.    Convenience:

Auto Lease comes with various conveniences such as no maintenance cost and insurance cost as both are taken care of by the leasing company. You are free from the hassle of maintaining your car constantly. 

3.    Open for more options:

Once the lease period is over, you have other options to explore i.e., you can upgrade the car model or choose a better car option available in the market currently.

Few disadvantages of Auto Lease. 

1.    Restrictions on kilometers:

When you buy a car on your own there are obviously no restrictions. Also, in case you buy a car on loan, there are no restrictions on usage or kilometers. However, if you don’t repay the loan amount or default on payment, the lender will take possession of your car.  In the case of Auto Lease, you have restrictions on the kilometers.   

2.    Additions:

After a while, as an owner, you feel to upgrade your car in terms of additional accessories. To install any accessories, you need to take permission from your company. Once you get the approval, you can install that particular accessory. And in case there is any damage caused during the installation, you have to bear the cost. 

3.    Termination of the lease:

There are chances that you might feel like switching your current job or want to start a new business of your own before the end of the lease period. In those scenarios, there will be termination of the car lease and you have to pay a heavy amount to end the lease period. The penalty charges to terminate the lease are very high.

How to apply for Auto Lease with Poonawalla Fincorp?

You can apply for Auto Lease with Poonawalla Fincorp by following these easy steps:  
Step 1: Visit the official website of Poonawalla Fincorp 
Step 2: Click on the other loan section, and you will find Auto Lease section
Step 3: Click on ‘Apply Now’ under Auto Lease section 
Step 4: Upload the required documents and fill out the form 
Step 5: After verification of the details, your loan will be approved 

To conclude

If you are working at a stable job and want to further continue in the coming years, you can opt for Auto Lease with your company. This provides you with a good option of owning a car without any hassle. And in case auto lease is already included in your salary package, you will be provided with a tax benefit up to 30%. 
So, opting for Auto Lease is a good option when you want to save tax and want to own a car. We at, Poonawalla Fincorp, offer Online Auto Lease Solutions for Corporates, your one-stop destination for Auto Lease. Our dedicated team of experts will help you at every step providing you with completely customizable solutions.

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