Getting a new car is exciting. But buying one may not always fit your budget or plans. That’s where leasing steps in. It gives you a new car without the stress of owning it.
Still, before you say yes to any leasing company, you need to check a few things. Many people skip this part and end up paying more. So, before signing any deal, keep these in mind:
- Not all leasing companies offer the same things.
- Some include extra costs in the monthly price.
- Early exit from the lease may cost you a lot.
- A company-leased car has limits, like how far you can drive.
- You can get tax savings, but only if the setup is done right.
Knowing these details will help you stay safe and save money.
1. Know What a Leasing Company Actually Covers
Most people think a leasing company only gives you a car. But there’s more. Many also offer services like free servicing, insurance, and help if the car breaks down.
This means your monthly lease may seem high, but it often includes extra things. For example, big leasing brands in India like ALD and Orix give full care packages. They cover tire changes, yearly checkups, and even repairs after an accident.
So don’t just look at the car. Ask the company what’s included. Then, compare the cost with what you would pay on your own.
2. Check If a Company Leased Car Suits Your Usage
A company-leased car is great for people who travel every day. If you drive to work or meetings, it makes life easy.
But if you hardly use your car, or your office pays for travel, leasing may not help.
There’s also a limit on how far you can drive in a year. If you drive more, the extra cost is high. Some companies charge ₹2 to ₹7 for every extra kilometer.
So it’s best to know your driving habits. Then match that with what the lease allows.
3. Watch Out for Early Exit Charges
Breaking a lease early is not easy. Many people sign a lease for 2 to 4 years. But later, their plans change.
Maybe you get a job in another city or decide to buy a new car instead. Either way, ending the lease early can cost you a lot.
Here’s why:
- Most leasing companies charge a fee if you leave early.
- You may have to pay for the full remaining months.
- Some may ask you to find someone to take over the lease.
So, always ask the leasing company what happens if you need to stop early. Some have smoother rules than others. Pick one that fits your life plans.
4. Know How a Company Leased Car Helps You Save Tax
This part is a big win. If your office offers it, a company leased car can lower your taxes.
Here’s how it works:
- Your company pays the lease from your salary.
- That part of your salary is not taxed.
- You save money every year without doing anything extra.
According to ClearTax, this setup can help you save up to ₹60,000 in a year. But it only works if your company offers this setup. So, talk to your HR team first. Then, confirm the process with the leasing company too.
5. Ask What Happens When You Return the Car
Returning the car seems easy, but it can cost you if you're not careful. The leasing company will check the car closely.
They look for scratches, dents, or anything missing. If they find damage, you’ll have to pay. And they charge more than a local garage.
To avoid this:
- Ask for a return checklist.
- Keep your car clean and serviced.
- Fix small things before you return it.
This way, you won’t face surprise costs at the end.
Conclusion
A lease can be a smart choice if you understand it fully. The right leasing company will help you save time, money, and effort. A well-managed company leased car plan makes your life easier. Just ask the right questions and think ahead before you sign.