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Old 8th May 2018, 12:18   #226
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

Now with the all the uncertainty about GAAR, wondering if the car-lease option really makes sense.

Planning to pick up a new Swift Zxi this year. Not sure if we should go for the company lease (finance lease) option that my wife's company provides or to just buy the car ourselves.

The lease option will take care of road tax and insurance. We have the money saved up to purchase the car outright without taking a loan. [We don't need to use that money for a down payment on a flat or any other appreciating asset/investment, as is usually suggested.] Going by our past habits, we'll almost certainly hang on to the car for more than 5 years.

I'm tending towards the outright purchase option.
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Old 10th May 2018, 16:54   #227
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

How do such schemes work? Looks desirable but do I hear a balloon repayment?

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Old 11th June 2018, 10:07   #228
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Default Re: ARTICLE: Lease OR Loan? Which EMI is better for you

I am in a dilemma with respect to financing for my next car. I have two options:

1. My company provides lease option at 11% and buy-back of 20% for a 4 year lease plan. I bought my old car on a similar plan.

2. My wife has just started a business, on which name we can buy the car with a loan.

I know from experience that the lease plan works out better comparing with a personal car loan. But buying the car on the business' name is unfamiliar territory for me. Can somebody throw some light how these two stack up against the other?

If the difference in savings is not massive, then I am inclined to go with the lease option since the paperwork is very less. Any thoughts?
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