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Old 21st April 2014, 17:18   #181
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Not sure about this, will have to check with the leasing company and the policy of the new company.
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Old 22nd April 2014, 12:39   #182
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Quote:
Originally Posted by DCEite View Post
Thanks for that input.

One more question, suppose i change my job before lease (say within 1st year) in a company which provides leasing through the same vendor (say Leaseplan), in that case will the lease be transferred or will i have to pay foreclosure penalty and Road tax+insurance and then start a fresh lease in the other company ?
The leased car is registered in the name of the company (leaseplan,orix,etc are just the lease service provider), hence in legal terms the car belongs to the company (company owned car)
Technically if you change the company then the lease has to be foreclosed and ownership has to be transferred after you buy the car (lesser painful option is to transfer to someone within the ex-company itself and let them continue the lease)

But unofficially I have seen cases that the leasing company lets the employee use the current car in the new company (if they are tied up there as well). How is this done, I have no clue on this
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Old 8th June 2014, 23:46   #183
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

If you already have a car but the car offered on lease by the employee's company is a higher end model does it make economic sense to take the lease option?
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Old 16th July 2014, 13:34   #184
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Hi All,

I am planning to buy XUV from a company car lease program. I would like to understand couple of things on this:

1. Is it possible to buy a car which costs more than the limit specified by the company? If yes, how do I go about it?

2. Is it possible to get the insurance on our own, since the estimate given by showroom is considerably more.

3. Has anybody bought a XUV through company lease, if yes what is the monthly amount you are paying? Are you happy with the lease program?

4. Will it be a better option to buy through company lease or take a personal car loan?

Need all your inputs at the earliest, which would help me decide and go ahead with the purchase.

Thanks in Advance.
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Old 23rd July 2014, 17:16   #185
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Does anyone have idea how to transfer a company leased vehicle to a third party, before the lease period has expired?
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Old 23rd July 2014, 19:14   #186
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

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Originally Posted by fusionbang View Post
1. Is it possible to buy a car which costs more than the limit specified by the company? If yes, how do I go about it?
If you want the EMI to bring down,
Option -1 Choose longer lease period.
Option -2 If your company gives options to choose from different Residual Values(RV) 1%,10%,30%..etc; By choosing higher %RV, you can bring down the Net value to be financed. You need to pay the RV at the end of the tenure.

Option-3 Check if Road Tax can be paid by the employee (Bangalore Road Tax for XUV-W8 comes around 2.6L )
Likewise check if self pay option is available for, Registration & Accessories cost.

Quote:
Originally Posted by fusionbang View Post
2. Is it possible to get the insurance on our own, since the estimate given by showroom is considerably more.
Mostly, the first year Insurance has to be taken through your Company preferred vendor.. check on that

Quote:
Originally Posted by fusionbang View Post
4. Will it be a better option to buy through company lease or take a personal car loan?
Please calculate, how much will you save on Tax if going through Lease. If you want to change job, is it easy to transfer the car to another employee or what are the buyout clause... etc

Quote:
Originally Posted by DCEite View Post
Does anyone have idea how to transfer a company leased vehicle to a third party, before the lease period has expired?
Need to pre-close the Company Lease, get the Car documents from the Company and transfer the ownership to third party.

Each company has its own policies regarding Car Lease program; best is to check with your colleagues from your workplace, who have taken the same.

Last edited by Twiny : 23rd July 2014 at 19:22.
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Old 17th September 2014, 11:53   #187
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Hi Guys,

I have been reading through this topic. Still lot of things seem confusing. Firstly leasing seems to be a good option say for the person opting for it, but in what way does the dealer benefit ? Secondly what are the main advantages of leasing a car? Has anyone faced issues with the dealers with whom you might have leased a vehicle. I have been offered this and iam seriously thinking. Inputs will help.

Regards,
Devyaani
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Old 22nd October 2014, 22:24   #188
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

I have booked a Celerio through ALD and here is the 'Savings Chart' given by ALD:
Attached Thumbnails
ARTICLE: Lease OR Loan? Which EMI is better for you-celerio-ald-vs-loan.png  

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Old 3rd February 2015, 18:57   #189
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

i am negotiating a deal for a used Ertiga which is currently in a lease program with HP. The owner is quitting the job and selling his car at the same time.

I was told that owner will make the payment to company and get the transfer papers to me. I am confused on what is the right procedure to follow from this point onwards?

1. Can HP gives the ownership transfer documents directly in my name? I suppose no.
2. if HP is giving the ownership transfer documents to the current owners name, should we be changing the ownership twice? Or is there way to process both the transfers in one shot?

Really appreciate if guru's can guide on what steps to follow to protect the buyers interest.

Edit: Its a Karnataka registered Ertiga
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Old 3rd February 2015, 20:57   #190
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Hi Arijithin, based on my experience, a direct transfer to your name should be possible.

In 2007, I bought an sx4 on company lease in Delhi. On quitting my job in 2010, I paid the remainder amount plus penalty for early termination, and in return we prepared papers to transfer the car directly to one of my family members. Both my company's finance department and Orix (the lessor) were fine with the arrangement. Do let me know if you have any follow up questions.
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Old 3rd February 2015, 21:29   #191
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Quote:
Originally Posted by shiraz View Post
Hi Arijithin, based on my experience, a direct transfer to your name should be possible.

In 2007, I bought an sx4 on company lease in Delhi. On quitting my job in 2010, I paid the remainder amount plus penalty for early termination, and in return we prepared papers to transfer the car directly to one of my family members. Both my company's finance department and Orix (the lessor) were fine with the arrangement. Do let me know if you have any follow up questions.
Thank you Shiraz for the response. Really appreciate it. SInce I am new to 'lease' program, got some more questions for you

I heard from others too that direct transfer is possible. But the seller got information from his office that as per his company policy they will give NOC to the employee only.
1. So what documents normally the employer/lease plan company provide on termination of lease?
2. What additional documents RTO require to be produced along with the Sale forms (form 29/30) if the vehicle was on lease ?
3. Will the employer pre fills the buyer info when they provide form 29/30 ?

Last edited by arjithin : 3rd February 2015 at 21:29. Reason: EDIT: got an update that ALD is the lease provider
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Old 4th February 2015, 12:35   #192
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Quote:
Originally Posted by arjithin View Post
Thank you Shiraz for the response. Really appreciate it. SInce I am new to 'lease' program, got some more questions for you

I heard from others too that direct transfer is possible. But the seller got information from his office that as per his company policy they will give NOC to the employee only.
1. So what documents normally the employer/lease plan company provide on termination of lease?
2. What additional documents RTO require to be produced along with the Sale forms (form 29/30) if the vehicle was on lease ?
3. Will the employer pre fills the buyer info when they provide form 29/30 ?
The answers are in order:
1. Company will provide the NOC certificate
2. RTO will ask for original RC, insurance certificate, address proof, NOC and other
forms (29/30) filled and all documents needs to be attested
3. Normally yo need to fill all the details, but it can varyy from company to company

I hope this clarifies your queries.
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Old 15th July 2015, 11:24   #193
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Hi Guys,

I am in a fix here. Can someone please explain what all aspects you should cover when deciding on whether to lease it or not? I am looking to get Creta and the pricing isn't out yet (so that itself makes it difficult to think). However,
1)when I do calculations what all things do I need to consider?
2) Car lease company is Orix.
3) They told me at the end of car lease I can keep the car at the resale value determined with 3 used car dealers. However, would it be negotiable to lock the RV down at the lease agreement?

I do not see people discussing this aspect of late. Is car lease option not a preferred one anymore?
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Old 5th August 2015, 19:54   #194
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Bumping up the thread. What I am essentially looking for is what is current take on whole car lease benefit. How I can try to gain most out of it.

Any help will be greatly appreciated.
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Old 6th August 2015, 14:40   #195
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

My two cents on car lease.
I have been using car lease for the past one year. The savings is in three categories
1. EMI component - Around 22,700 p.m for fluidic verna. Not really a saving because this is taken from your salary. You can consider it as car usage charges
2. Fuel reimbursement - 10,000 p.m, Need to produce bills. Savings is dependent on how much distance you drive in a month and how you arrange the fuel bills
3. Driver Salary - 12,000 p.m - Need to produce driver salary receipt like rent receipt.
Now for the tax part S.No 1 is already saved since it does not figure in the pay slip. Now if we take EMI component as the actual expense and the savings from S.No 2 & 3 at 30% tax bracket you save around 7300 p.m in tax.
S.No 2 & 3 is got as reimbursement and hence non taxable.
But please be careful about the buyback since at the end of lease period of 4 yrs still you may need to pay upto 50% of the original value which is not really prudent.
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