Car leasing has become one of the most lucrative ways of acquiring a fleet for your organization. Having a vehicle makes the employee’s commute hassle-free, and nurtures a motivation-driven mindset, thereby enhancing the growth prospects of the organization.
In comparison to conventional automobile financing models, car leasing is preferred by most organizations due to the advantages it offers. From tax savings, and roadside assistance to easy credit approval, employees can benefit from such advantages and acquire their dream car seamlessly.
As per the vehicle scrappage policy which was launched in August 2021, all private and commercial vehicles that have been used for more than 15 years must go through a fitness check. Failing the test will lead to scrappage of the vehicle. If a vehicle passes the test, a ‘green tax’ of about 10-15% will be charged at the time of certificate renewal. In this case, the car either gets scrapped or becomes a financial liability for some.
The new policy has also propelled the interest in car leasing policies, creating waves in the Indian automobile sector. As organizations become more employee-centric, the popularity of auto leasing is gaining momentum. Let’s explore why auto lease can be a viable option for your organization.
As the purchase is financed by a leasing company, the lessee does not have to pay any amount while making the purchase. The lesser will be the primary owner of the vehicle and the lessee will be secondary. All the related expenditure such as car accessories, on-road price, and zero-depreciation insurance is included in the lease cost, which means there is no need for any down payment. This is one of the key advantages of an auto lease.
As vehicles age, their maintenance and repair costs rise in tandem. When a vehicle is leased, the maintenance is taken care of by the company that owns the vehicle, which, in turn, saves overhead expenditure for the lessee.
With the vehicle scrappage policy and green tax, holding on to older vehicles can be troublesome. Another advantage of auto lease is that it enables users to replace or upgrade their cars with a better version at the time of lease renewal. This also allows employees to save on taxes that come with buying a new car.
An auto lease can help save up to 30% on taxes on vehicles. To avail the deduction, the employee must show that the vehicle has been used regularly for company-related purposes. Employees can get tax benefits on the lease amount, fuel reimbursement, and driver’s salary.
As compared to car loan approval, which might take up to 5-7 days, car lease approval can be gained quite easily. Depending on the leasing company, it does not require hefty paperwork and can be approved in 24 hours.
The installment amount that needs to be paid while leasing a car covers insurance charges. Employees can avail comprehensive insurance coverage including all types of repair and maintenance costs, accidents, and theft without having to worry about insurance renewal dates and additional expenses.
Instead of offering used and old cars to employees, organizations can avail the latest car models with auto leasing. This not only ensures the safety of employees but also improves mobility and fulfills business travel requirements for long and short distances.
Car leasing companies may offer customized solutions to customers to help them choose the best car that is in line with their requirements. The lease tenure ranges from 12-60 months and is aligned with the pre-laid terms and conditions of the leasing company. When the contract is over, it can be renewed, upgraded, or downgraded.
Auto leasing is creating inroads in India’s automobile market as more consumers and organizations are getting aware of its advantages. Leasing a car allows to you enjoy a vehicle at its full capacity without having to worry about its maintenance and resale once it starts getting old.
In addition to this, the process enables individuals and organizations to renew cars without dealing with extra charges and rate inflation. Car leasing is a great option for those who prefer changing or upgrading their cars frequently.
At Poonawalla Fincorp, we offer attractive and cost-effective car leasing solutions to help you choose the best fleet for your organization. Our subject matter experts have curated our Company Car Lease solutions for corporates, which include Finance Lease and Operational Lease.
We also offer customized solutions as per your requirements to offer a seamless mobility experience for the organization at large. We ensure buying assistance, easy documentation, and quick processing to help you get your fleet on the road easily and quickly. Check out our auto lease solutions and for more information and reach out to us at firstname.lastname@example.org.
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