BMW started Leasing?

[GS300]

mods, if this has been discussed already, kindly close this thread.

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Someone told me that BMW has started leasing their entry level cars (3 series) to increase the pool of people who can afford their cars.

The idea is that anyone who plans to buy a 10+ Lakhs car should be able to lease 3 series, drive it for 5 years and then return the car back (and..lease another one)

Is this true? has anyone heard of this?

[rockrider]

That is innovative!!! or is it?? I wonder if BMW or any other company does this in any other market in the world. will surely be an interesting case study.

[neo_trace]

yes buddy
in USA these thing happens and my brother in law keeps leasing Toyota
they have 4 yrs contract with 3 cars

[GS300]

Yes, in the US, leasing is a very common practice.

But I am talking about India. Here, I am doubtful about its success as we Indians put VFM at the top of the priorities. Hence I was curious to know if BMW can make this a success.

[bottle]

probably can be done. my cousin in bombay has leased a toyota innova for 3 years after which it will go the travels co. lease is handled by a travels company so if some similar agencies are willing to do it for a 3 series why not

[black12rr]

@bottle , do you know how much was he charged for 3 years lease on innova ? , any details ,security deposit ?

[bottle]

not sure , he isnt in the country now so will check when he gets back. i think its roughly 27k or a bit less per month. he only has to pay for fuel and servicing etc is taken care of by the lease co.

this was 2 years ago, prices are a lot less now i heard since he is looking at renewing his lease soon (after 3rd year)

[ajmat]

Fun starts when the cars go back to the company and people are debited for the scratches etc. Leasing means car has to be in tip-top condition and within the km usage specified

[narayan]

all though not sure whether BMW has started this,,,there was a discussion on lease and the cost dynamics in this thread earlier..

http://www.team-bhp.com/forum/indian...cons-each.html

[sbasak]

Leasing (aka Perconal Contract Hire) is in use in America/Europe for quite a long time.
I wonder whether it will be successful in India. Overseas, people just run on credit & don't think of how they are going to repay them,
but in India, where bank sends muscle men if you default a payment, leasing a trap rather than a benefit!

Bottom line is you never own the car! :(

However, if you use the car for commercial purpose, then it's quite attractive option.

[bottle]

Originally Posted by ajmat

Fun starts when the cars go back to the company and people are debited for the scratches etc. Leasing means car has to be in tip-top condition and within the km usage specified

this was not an issue for my cousin.. infact recently the lease co repainted the car and removed the dents foc.

the reason for lease is that its a company owned car and the company policy is not to own any assets in india

[GTO]

To many businessmen and corporates, leasing makes a whole lot of sense. Here is the Team-BHP article on pros and cons of a Lease.

IMHO, a very smart move by BMW. Expect Merc to follow.

[AMATMO]

its gonna be great if these cars are leased,
will they qualify under EPCG scheme?

[GTO]

will they qualify under EPCG scheme?

Atleast not the 3 and the 5 since they are assembled locally. EPCG is applicable only to CBU imports.