Everything You Need to Know About Vehicle Leasing.
We all know that buying a car is not a cakewalk. It’s an expensive affair, and car enthusiasts are always on the lookout for car finance options to fulfil their car dream. But have you ever considered car leasing? Leasing a car is not as popular in India as it is in developed countries, but that doesn’t mean it’s not a good option. Leasing is one of the ideal choices for people who want to upgrade their car every few years. In this blog post, we will discuss everything you need to know about car leasing. So, don’t forget to read till the end.
What is Car leasing?
Car leasing is a contract between the car owner and the car lessee. Under this contract, the car lessee pays a fixed monthly amount to rent the car from the car owner. At the end of the lease period, they can either return the car or buy it at a pre-determined price.
Who Can Lease a Car?
Almost anyone can lease a car, but the lessee should be above 18 years of age and have a valid driving license. If you do not own a car, then don’t panic; you can still lease one by paying the security deposit and first month’s rent in advance.
What are the Benefits of Car Leasing?
There are many benefits of car leasing. Some of the key benefits are:
- You can upgrade your car every few years without spending a lot of money: Yes, with a car leasing plan, car enthusiasts can upgrade their car every few years. So, if you are someone who likes to try new models or car brands, then car leasing is the best option for you.
- Make low monthly payments: The biggest advantage of Car leasing company India is that it has a lower interest rate, and thus, the monthly payment is lesser than a car loan. So, if you are looking for an affordable car finance option, car leasing is the best choice.
- No down payment needed: Unlike car loans, car leases do not require a down payment. So, if you don’t have enough money to buy a car outright, then leasing is a good option. Leasing allows you to enjoy the comfortability of the car without having to pay a huge amount of money at once.
- Tax benefits: Leasing a car also offers tax benefits. Under the Indian Tax laws, you can claim depreciation on the car leased over a period of five years. So, this could help reduce your taxable income.
- No worry about depreciation value: There is no need to worry about depreciation value, as it’s the responsibility of the car owner to maintain the car’s value. Plus, car leases usually have a mileage limit. So, car enthusiasts can drive the car for as many miles as they want without worrying about the depreciation value.
What is the Procedure of Car Leasing?
Knowing the car leasing procedure is important before you sign a car lease. Here are some of the key steps that every car enthusiast should know.
- The first step in car leasing is to choose your desired car and decide on a suitable lease term (usually between 12 months to 60 months). Note that longer tenure means a higher car price. So, choose the car and lease term wisely after considering your budget and needs.
- The next step is to submit a car leasing application form along with required documents (valid ID Proofs, Income proof & address proof) at an authorized car dealership or showroom.
- Once the car leasing application is approved, the car dealership will contact you to finalize the car lease agreement.
- The last step is to make monthly car lease payments on or before the due date.
So, that’s all car enthusiasts need to know about car leasing. Now, if you are looking for a car lease, then you must visit Car leasing Company India to figure out the best car lease deals in India.