[achopraa]

Well, I have been a user of Car Lease for more than 8 years now and absolutely love it and have also shared my information with other.
Since I am now on Youtube, I also created a video specifically to do this comparison for a car to be bought on loan vs lease to share my calculations.
Hope the users of this forum also find it useful.

https://youtu.be/hFl477BMnbw

[Jithinjj]

I booked skoda slavia 1.5 and paid downpayment and yes bank loan got approved in march. From from march 15th i am paying emi of 32,105rs but I didn't received the car yet. Now from showroom they are saying that they wont be able to fullfill delivery and i am planning to cancel the booking. So how it will affect the loan. Do i have to pay any penalty or showroom will pay that? Please help me.

[Livnletcarsliv]

Originally Posted by Jithinjj

I booked skoda slavia 1.5 and paid downpayment and yes bank loan got approved in march. From from march 15th i am paying emi of 32,105rs but I didn't received the car yet. Now from showroom they are saying that they wont be able to fullfill delivery and i am planning to cancel the booking. So how it will affect the loan. Do i have to pay any penalty or showroom will pay that? Please help me.

Very unusual situation. How can this happen?
The loan disbursement happens only after the car is billed from the OE to dealer. And the EMI will start only after the car is delivered by the dealer to the customer. Unless the there is delay from the customer side.

1. Why the dealer is unable to fulfil the delivery?
2. Why the loan amount was disbursed without even the OE billing the car to the dealer?
3. Why did you start the EMI even before the vehicle arrival at the yard/showroom?

I think there are a quite a few confusions here. So please clarify.

[Jithinjj]

Originally Posted by Livnletcarsliv

1. Why the dealer is unable to fulfil the delivery?
2. Why the loan amount was disbursed without even the OE billing the car to the dealer?
3. Why did you start the EMI even before the vehicle arrival at the yard/showroom?

I think there are a quite a few confusions here. So please clarify.

1) The showroom (Malayalam skoda , trivandrum) is currently at the brim of bankruptcy,and they don't have fund to get new vehicles (got this information from another showroom)
2) According to bank manager of YES bank, TVM its normal for the EMI to start even before the car is delivered because of shortage of supply. So whoever pay first will get car. Yet i never received my car.
3) i was promised by YES bank executive that i will get the car with in few days after i start paying my loan EMI.

[Livnletcarsliv]

Originally Posted by Jithinjj

1) The showroom (Malayalam skoda , trivandrum) is currently at the brim of bankruptcy,and they don't have fund to get new vehicles (got this information from another showroom)
2) According to bank manager of YES bank, TVM its normal for the EMI to start even before the car is delivered because of shortage of supply. So whoever pay first will get car. Yet i never received my car.
3) i was promised by YES bank executive that i will get the car with in few days after i start paying my loan EMI.

Please raise the concern and file a complaint with Skoda directly. In fact, talk to Skoda regional manager to see how can this situation be handled. Simultaneously, you can also ask the bank to change the dealer (If no other dealer in TVM, then change it to another location), so that you don't loose the interest amount paid for these initial months as well as get the car ASAP.

[saurabh041086]

I am fairly new to car leasing. So far I have only heard of it from friends. But I am planning to buy a car under this at the current employer.

This is the car lease quote I received for Carens prestige plus DCT. Just wanted to understand which option of residual value makes more sense in case one plans to retain the car after lease? Also is the residual value as high as 35% in most leasing companies?



Although a rare thing in current times, but how do these car lease vendors pass on the discount if any that i may be getting if i go via self finance/ownership route?

[steadfast]

Urgent help needed!!

Can someone please suggest if these lease calculations are fine or am I getting scammed?
I am opting for 4 year lease.

Also, my vendor says if I change job after a year lease can be transferred to even a different leasing vendor in new firm. Is this feasible ?

[m8002?]

Folks who have evaluated lease, does it make sense to lease a car just to save on taxes?

I have a 6 year Creta and really dont see a reason to update immediately. But last year, the surcharge on top of the tax hit me when I received my bonus. So I am thinking of taking the car lease option to reduce my taxable income. If the lease doesnt help much, then makes no sense to upgrade now.

I dont see any easy to use online evaluation tools either. So suggestions welcome from folks who have evaluated this and decided on one way or the other.

[DCEite]

Originally Posted by m8002?

Folks who have evaluated lease, does it make sense to lease a car just to save on taxes?

I have a 6 year Creta and really dont see a reason to update immediately. But last year, the surcharge on top of the tax hit me when I received my bonus. So I am thinking of taking the car lease option to reduce my taxable income. If the lease doesnt help much, then makes no sense to upgrade now.

I dont see any easy to use online evaluation tools either. So suggestions welcome from folks who have evaluated this and decided on one way or the other.

Well, no tax saving instrument should be taken to "only" save the taxes. If it serves your purpose and you need a new vehicle, then definitly go for it for the added benefits on tax.

Cars are anyway not value for money right now, so if Creta is doing well and you don't need a replacement/second car, then it doesn't make much sense.

However, if yours is a Diesel then you have 4 years of life left in the Creta (In case of Delhi/NCR only, but expected to be countrywide sooner than later), so in that case you might think of selling it off now as still can get some reasonable resale value and replace with a Petrol or EV.

P.S. I have been company leasing cars since 2013. Currently on my third lease. Each time there was a genuine reason to take next lease, not the tax benefits.

[m8002?]

Thanks for the response.

I drive a diesel Creta in Bangalore. Apart from the taxes part, I am also looking at moving to an Automatic so that its a bit more comfortable in the crawling traffic. But its not like I am desperate to move immediately. I go to office only 1 day a week.

My thoughts are more like : Since we have the lease policy, why not use it to move to Automatic and save some taxes while at it.

[Rohan1511]

Hello everyone,

I am a corporate employee and I currently have no loans on my name. I stay with my parents and intend to stay with them for the future. Our family currently has Honda City 2017 VX CVT with only 42K kms with few dents and scratches, which we'd like to sell off and use the money obtained for other purposes. My company currently provides me with the following car company leases below, I intend to procure the new Honda Elevate ZX CVT (1498 CC) soon which will have an ex-showroom price, let's say around, 16 Lakhs. I plan to have the lease tenure for 4 years. I can also procure an Innova GX(1998CC) version, if buying a bigger car makes more sense, it's priced around ex-showroom of 19.99 Lakhs.

My father has saved up some money and wants to procure a car and gift it to my name. But my thoughts are to use that money elsewhere since he's retired and my company also offers exemption of fuel and maintenance of up to 2 lakhs per year which will increase to 2.5 lakhs by the end of this year. My father is adamant that buying it through him will be cheaper than leasing it, however, the fuel and maintenance benefit via leasing makes me doubt that procuring it ourselves will be cheaper. I'd rather keep the company lease car. However, I need all of your guidance on which is better and how can we calculate this?

[theoldcamper]

I have an important decision to make. I am planning to take the car lease.

There are few pointers I have already raised with the leasing company, they are very lax so haven't heard yet.

Does anyone have lease foreclosing experiences, where you bought back the car? If you can share calculations and your experience would be great.

[shankar.balan]

Making some calculations and studying a little about the Company Leasing Programs for cars, I am surmising the following.

1. When one buys a standard ICE car the GST is around 28%. This is to be paid at the time of purchase.
The Tax benefit is perhaps 30-35% of the total value of the payments that one makes towards lease EMI in a year.
2. Hence atleast for Year 1, the nett benefit of the lease is only approx 7%.
3. Lease EMI’s factor an interest rate of perhaps 10-11% whereas Loan EMI’s factor an interest rate of maybe 8.9-9.5%.

However, if one considers a lease on an EV, then the benefits of buying on lease are straight off the bat, from the ‘get-go’ as it were because the GST on EV’s is at 5% at this point. So in Year 1 the nett benefit that one gets is a straight 30% or so, being the tax saved on the annual lease payout amount.

Is the above surmising correct or am I missing something ?

[Love4Cars]

It doesn't matter whether you are buying an ICE or EV, GST is inclusive of showroom price which is paid by the lease vendor.
Lease vendor pays this GST from your monthly EMI to the government.
Benefit of car lease is usually zero down payment for you with increased interest but that is offset easily by 30% taxable zero reduction on all EMIs plus Insurance/ Maintenance/ Fuel (ICE) and even driver if your company policy allows.

For instance for a car costing 20 Lacs at lease value, you will pay around 4-5 Lacs interest but can save approx 10 Lac on 4 years lease. So overall you will get a 20 lacs car for 16-17 lacs with installments.

Main caveat is if you foreclose (due to job change), you may need to buy back and pay an increased interest for the remaining months.

[sumosari]

Looking for below information.

As GST is calculated every month on base price as part of the Lease EMI and also at the end of lease when one owining the car there will be GST levied on the Residual value.


What if the GST rates change during the lease term. As an example if I take a EV under lease for 3 years for which current GST is at 5% and the same is applied every month as part of my Lease EMI. Suppose if the GST rate changes to 10% on EV's after an then what will the lease EMI increases due to increase in GST? What GST rate will be applicable for Residual value when owning th car at the lease end.

Same question but when GST reduces, like an example if GST rates reduced to Hybrids then what will be impacts?