Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 1st October 2007, 12:20   #1
BHPian
 
GS300's Avatar
 
Join Date: Apr 2005
Location: Bangalore
Posts: 66
Thanked: 19 Times
Default BMW started Leasing?

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

----------------------------------------------------------------

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?
GS300 is offline   Reply With Quote
Old 1st October 2007, 12:53   #2
Newbie
 
Join Date: May 2007
Location: Pune
Posts: 12
Thanked: 0 Times
Default

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.
rockrider is offline   Reply With Quote
Old 1st October 2007, 13:09   #3
BHPian
 
neo_trace's Avatar
 
Join Date: Jul 2006
Location: surat,gujarat
Posts: 191
Thanked: 38 Times
Default

yes buddy
in USA these thing happens and my brother in law keeps leasing Toyota
they have 4 yrs contract with 3 cars
neo_trace is offline   Reply With Quote
Old 1st October 2007, 13:21   #4
BHPian
 
GS300's Avatar
 
Join Date: Apr 2005
Location: Bangalore
Posts: 66
Thanked: 19 Times
Default

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.
GS300 is offline   Reply With Quote
Old 1st October 2007, 13:36   #5
Senior - BHPian
 
bottle's Avatar
 
Join Date: Sep 2006
Location: Chennai
Posts: 1,489
Thanked: 133 Times
Default

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
bottle is offline   Reply With Quote
Old 1st October 2007, 13:41   #6
Senior - BHPian
 
black12rr's Avatar
 
Join Date: Dec 2005
Location: Ridin earth now
Posts: 1,259
Thanked: 272 Times
Default

@bottle , do you know how much was he charged for 3 years lease on innova ? , any details ,security deposit ?
black12rr is offline   Reply With Quote
Old 1st October 2007, 13:46   #7
Senior - BHPian
 
bottle's Avatar
 
Join Date: Sep 2006
Location: Chennai
Posts: 1,489
Thanked: 133 Times
Default

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)

Last edited by bottle : 1st October 2007 at 13:51.
bottle is offline   Reply With Quote
Old 1st October 2007, 14:30   #8
Team-BHP Support
 
Join Date: Feb 2004
Location: Bangalore
Posts: 11,882
Thanked: 9,695 Times
Default

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
ajmat is offline   Reply With Quote
Old 1st October 2007, 14:40   #9
Senior - BHPian
 
narayan's Avatar
 
Join Date: Aug 2006
Location: Singapore
Posts: 2,768
Thanked: 1,161 Times
Default

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 (Lease or loan? Pro's and Con's of each.)
narayan is online now   Reply With Quote
Old 1st October 2007, 14:43   #10
BHPian
 
sbasak's Avatar
 
Join Date: Nov 2005
Location: CCU-LTN
Posts: 607
Thanked: 8 Times
Default

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.
sbasak is offline   Reply With Quote
Old 1st October 2007, 16:45   #11
Senior - BHPian
 
bottle's Avatar
 
Join Date: Sep 2006
Location: Chennai
Posts: 1,489
Thanked: 133 Times
Default

Quote:
Originally Posted by ajmat View Post
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
bottle is offline   Reply With Quote
Old 1st October 2007, 16:46   #12
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,705
Thanked: 89,030 Times
Default

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.
GTO is offline   Reply With Quote
Old 1st October 2007, 17:17   #13
Senior - BHPian
 
AMATMO's Avatar
 
Join Date: Jul 2007
Location: Bangalore\GOA
Posts: 1,456
Thanked: 2 Times
Default

its gonna be great if these cars are leased,
will they qualify under EPCG scheme?
AMATMO is offline   Reply With Quote
Old 1st October 2007, 17:20   #14
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,705
Thanked: 89,030 Times
Default

Quote:
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.
GTO is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
BMW-ORIX Auto tie-up for Leasing Services hanmust The Indian Car Scene 3 19th May 2009 12:21
Has anyone explored the option of leasing brand new cars ? adityapd The Indian Car Scene 28 28th January 2009 20:53
Me too Started thinking about the ICE DRC In-Car Entertainment 15 11th June 2006 18:39
Hey When Did Maserati Started Producing this? _Crazi4Speed_ The International Automotive Scene 9 7th October 2004 00:00


All times are GMT +5.5. The time now is 16:12.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks