Given the dynamism of the Indian auto sector, it is simple for consumers to choose vehicles that are both suitable and economical. In India, the idea of auto leasing is currently gaining a lot of traction. With all the newest cars available for lease, the lessee won’t have to worry about capital expenditure, fixed cash flows, or other administrative challenges.
For individuals who want to buy a car with the least outlay, car leasing is suitable. A study predicts that by 2025, India’s middle-class population will be the world’s largest. To meet people’s mobility needs, many banks, and Non-Banking Financial Companies (NBFCs) including creditsuccess, provide strong and trustworthy car financing and leasing services.
What is Car Leasing?
Car leasing is the term given to the process of renting a car for an agreed amount of time on an agreed fixed fee. Unlike regular vehicle retail, leasing is like a long-term car rental. You will agree with your car leasing company for a said tenure during which you will have to pay monthly payments. Rather than building the equity or repaying the car loan, in a car lease, individuals will be paying for the car’s estimated depreciation value, along with interest on the money to underwrite the lease.
How is Car Lease Different from Purchasing a Car?
Car leasing is an efficient way for people to use a vehicle for a limited time. The lease period is generally 36-60 months. You will own the car when you purchase it and be liable to pay for all the additional costs. As time passes, you will end up with a severely depreciated car. On the other hand, when you lease the car, you will get a vehicle under a contract when you lease it from a company. You will not have to worry about the added costs, such as insurance, maintenance, and EMIs, as these costs are paid by the company leasing the car. Car leasing is becoming popular in India because it removes the burden from middle-class families who want to purchase a vehicle without leaving their financial comfort zone.
How Does Car Leasing Work?
People on a low budget and looking for ways to purchase a convenient car can turn to the automotive lease market as it provides several opportunities. Some leading car leasing companies, offer personalized plans to help customers lease their favourite cars.
Customers can lease a vehicle based on the terms and conditions, and the tenure usually lasts for about 1-5 years, depending on a customer’s needs. Once the term ends, the lessee can choose to extend, downgrade, or upgrade the term based on their requirements. Leasing companies offers repairs, pick and drop maintenance, registration, 24*7 roadside assistance services, and insurance covers for their customers. These factors make car leasing the greatest solution for self-reliant mobility without financial burden.
Why Auto Lease in India Can be the Future of Car Usership?
Nowadays, vehicle model technologies such as safety and features rapidly change and evolve each year. In such an environment, car owners will have to buy a new car once every 2-3 years if they want to stay updated with the latest technology in automobiles. Another downside of buying a car is that you will lose 20% of the value right after you take it on the road. In other words, vehicle ownership is a good idea only when you plan to use the car for a long time.
Considering these car ownership factors; Auto Lease’s advantages are higher than car ownership. Car leasing is the best option for employees, businesses, etc.; business owners can opt for the corporate Auto Lease. Car leasing provides the flexibility of using a new vehicle for a short time without worrying about insurance, repairs, or maintenance. When the lease ends, you can choose a new vehicle with the latest safety features. A company with a fleet may choose a corporate Auto Lease for these reasons. A business that wants to look modern will provide its employees with the latest and well-maintained vehicles for business travel expenses.
Benefits of Car Lease
All lease agreements come with terms and conditions the lessee will have to follow, and when the lease ends, the lessee will return the car to the company. This agreement provides several advantages that make leasing an ideal solution. Let us tell you about the benefits of leasing a car through creditsuccess
Lower Monthly Payment
The lower monthly payments are among the primary benefits of Auto Lease in India. When financing an used car or a new car, you will have to pay the whole buying price of the car over the life of the finance, along with interest rates. But the calculation for the lease payments differs from standard finance. Instead of paying the whole car value, the monthly payments only cover the depreciation value of a vehicle along with the taxes and rent. Your payment will be lower as you will only pay for the depreciation rather than the purchase price.
Lower Repairing Costs
Since the lease terms are short, the manufacturer’s bumper-to-bumper insurance will cover the damages or repairs. In some cases, manufacturers cover the maintenance costs as well. When reviewing the lease agreement, read about the repairs and maintenance costs covered to avoid surprises in vehicle service bills.
Less Cash Needed to Drive
When purchasing a new vehicle, the buyer must pay up to 20% of the down payment. However, a lease usually needs no down payment.
More Options to Choose From
Many people want to buy a specific car but may have difficulty purchasing it due to financial issues. On the other hand, car leasing opens the door to costlier models and reduces costs due to the lower monthly payment for your dream car. It offers more flexibility on vehicle options, and you can choose the one which fits your lifestyle.
Conclusion
There are many advantages of Auto Lease which you can get, which is the primary reason why auto car leasing will become the future of car ownership. At creditsuccess, we provide car leases solutions to our customers. Our portfolio for Auto Lease covers a wide range of car brands available in India.
