Features of Auto Lease

What is an Auto Lease? Top 6 Features of Auto Lease

In the last few years, Company Car Lease has witnessed an upward trend. We have seen the rise of Auto Lease solutions for corporates, especially in medium and large corporates. Online car leasing has assisted several companies with their business usage as well as their employees. 
Auto Lease solution for corporates is a readily available solution for all corporates. Auto Lease or sometimes referred to as a Company Car Lease is a feasible option for a company that is looking to own a car without being worried about its maintenance cost and heavy down payment.

What is Auto Lease?

Auto Lease is an agreement between two parties - lessor and lessee. In the case of a Company Car Lease, the agreement is between the lessor (dealer) and primary lessee (company), and secondary lessee. A Company Car Lease occurs when the company involves in an agreement with the dealer to provide a car on the lease for their employees.
The agreement is set for a pre-determined time with specific rent or payment at regular intervals of time. In the case of Auto Lease, the ownership is not transferred to the lessee but has a right to use the car for a specific period of time.     

Features of Auto Lease

1.    Payment
The major concern with buying a car or renting a car is paying a hefty amount for the car. In the case of an Auto Lease or Company Car Lease, you have to pay only the pre-decided monthly installment. You don’t have to pay the down payment amount which is the major advantage of a car lease. Just by paying a pre-determined monthly installment, you can own the car for a specific period of time. 
2.    Usage
As you are paying for the usage, you don’t have to be worried about the other factors. You can select any car model for a specific time period with pre-determined installments. 
3.    Maintenance
The maintenance of the car is taken care of by the lessor (dealer). As a lessee, you do not have to be worried about the maintenance and repair charges. 
4.    Value for money
With Auto Lease, you get a brand-new car for a specific period of time. It is the best option for someone who likes to change their cars frequently. You can pay a fixed monthly payment without being worried about the maintenance factors of the car. 
5.    Tax benefit 
Auto lease offers you a tax benefit, you can save up to 30% on taxes. The amount you pay for the car is considered under tax relief. The tax benefit can be availed by salaried professionals and self-employed. 
6.    Hassle-free
Auto Lease or Company Car Lease is one of the hassle-free processes as all the terms and conditions are pre-determined. The lessor and lessee agree on the pre-determined conditions which eliminate all the confusion and misunderstandings. 

Auto Lease vs Auto Rental

 

Differences

Auto lease

Auto rental

Time period

An Auto Lease can be categorized into the short-term and long-term. Short-term Auto Lease ranges from 12 months to 24 months whereas long-term Auto Lease ranges from 24 to 36 months.

Auto rental or car rental is a short-term arrangement that ranges from a few hours to a few days.

Cost

An Auto Lease is less expensive than compared to auto rental for the same period of time.

Auto rental is expensive as it is on an hourly basis. If extended beyond the given time, the cost is significantly high.

Tax benefit

With an Auto Lease, you can avail tax benefit

There is no tax benefit for auto rental

Ownership

There is a possibility that you can get ownership of the car at the end of the tenure

In the case of auto rental, there is no option available for the transfer of the ownership of the car.

Usage

Typically, the lessee has a limit on the mileage and there can be additional charges on exceeding the mileage limit.

Auto rental or car rental has a set kilometre limit that the user can use. There are extra charges for exceeding the additional kilometers.

To conclude:

We at Poonawalla Fincorp offer online Auto Lease Solutions for Corporates for all kinds of Auto Lease requirements. We provide Company Car Lease for medium and large corporates who are looking for car leasing for their businesses and employees. Our team of experts offers online car leasing according to your needs and requirements. With Poonawalla Fincorp’s online Auto Lease Solutions for corporates, we promise to deliver customized solutions by assigning you dedicated subject matter experts and buying assistance. Alongside, we have easy documentation and quick processing with strong manufacture and dealership tie-ups which makes it unique in the market.

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