![]() | #31 |
Senior - BHPian ![]() Join Date: Sep 2005 Location: PNQ
Posts: 1,139
Thanked: 221 Times
| ![]() Yes I have opted for car lease from my company through Leaser for Swift Vdi+ABS. 35 emis are deducted from salary and the 36th emi is 25% which needs to be given directly to leaser. After Many calculations and breaking my head over, we came to know that 3 years down the line the actual benefit is that we bought the car at exshroom value (this is after getting all the deductions etc etc.) In my case the exshowroom price of vdi_abs is 526xxx.xx/ a whopping 11000 cheaper than I had gone to market to buy it in Pune.(this again brings down the rto and insurance directly) So my rental works out to be 17k approx pm for 35months and i pay 1.7l (not tax exempt)at 36th month to get the car transfered in my name. End result is: I saved tax on 35 emi's, ( 3 yr insurance +maintainance bills+fuel bills not exceeding 60k/year) ![]() Though interest rate is approx 13% or something, all i paid in 3 years was the actual amount of exshowroom value of the car at the time of buying. Hope this helps Thanks Rahul PS: car should be arriving sometime in dec08-Jan09 Last edited by Rahulk76 : 19th September 2008 at 07:34. |
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![]() | #32 |
Distinguished - BHPian ![]() ![]() | ![]() @Rahul, thanks that did help. @Guna, pls explain reg the intrest rate & eligibility part. [ OT : pls avoid quoting what dont need to. The reply button is at the bottom of the page (I know the 'Quote' button is nearer & in the message box itself ] |
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![]() | #33 |
Senior - BHPian Join Date: Nov 2007 Location: Bangalore
Posts: 3,228
Thanked: 2,175 Times
| ![]() [quote=condor;983292pls explain reg the intrest rate & eligibility part. quote] Eligibility is purely a policy specific to the company. In my company, for my role/level there is a limit fixed. If I choose a car outside this eligibility limit, the additonal amount is deducted every month and a flat interest rate (10% in my case) will be charged on the additonal amount. |
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![]() | #34 |
Distinguished - BHPian ![]() ![]() | ![]() That is one way to look at it. End of the day, we are looking at the money saved ![]() My question here is : you paid 1.7L on the 36th month. Now, for the 3 years of the lease, what amount was used as the basis of calculation of your monthly rental ? Is it 5.26L - 1.7L = 3.56L ? Or was it calculated using 5.26L as the financed amount ? One other point I am confused about in all this is the last emi. Till about 2 yrs back, companies only asked for 10% of the capitalized value as the last emi. Today it has gone up to 25% for a 3 year lease, & 20% for a 4 year lease. So does this mean that the base amount used for calculations has now been reduced (so smaller EMI's/rentals), or are we paying about 15% more today, than 2 years back (in the form of a larger last EMI). |
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![]() | #35 | |
BHPian Join Date: May 2008 Location: Bangalore
Posts: 398
Thanked: 14 Times
| ![]() Quote:
It will still work out much better than taking a personal loan by yourself. | |
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![]() | #36 | |
Senior - BHPian ![]() Join Date: Sep 2005 Location: PNQ
Posts: 1,139
Thanked: 221 Times
| ![]() Quote:
the financed amout is exshowroom+registration which approx to 90% of the lease amount. and the 36th payment is paid from my pocket which is rental*10 DP. e.g. The montly rental comprises of rental (15k)+ vat 12.5% + service tax 12.5% = 17k. Hope this helps Last edited by Rahulk76 : 19th September 2008 at 15:58. Reason: corrections | |
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![]() | #37 | |
BHPian ![]() Join Date: May 2008 Location: gurgaon
Posts: 215
Thanked: 8 Times
| ![]() Hi guys Great write up GTO. Makes a beemer definately affordable now ![]() " Quote:
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![]() | #38 |
Team-BHP Support ![]() ![]() | ![]() M2S, I don't know who wrote that article but lease definitely makes sense to business owners. That said, each individual lease is unique. Best to compare between the actual quotes received. |
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![]() | #39 | |
BHPian ![]() | ![]() Quote:
Please correct me if i am wrong, what i can see from my company is as below comparing to the above equation. e.g. The montly rental comprises of rental (15k)+ vat 12.5% + service tax 12.5% + 2000 Lease rental tax = 19k | |
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![]() | #40 |
Distinguished - BHPian ![]() ![]() | ![]() @Tabrez02, a more detailed structure will help answer your question better. Approx payments should be in the range of 2800/- per month per lakh for a 36 month lease. Just that you will have a choice on the amount that will be financed through lease. One other point in the break-up mentioned by Rahul & Tabrez02 is that the service tax is 12.5% of the VAT, not on the rental. Last edited by condor : 22nd September 2008 at 10:52. |
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![]() | #41 |
BHPian Join Date: Jun 2007 Location: Guragaon
Posts: 173
Thanked: 0 Times
| ![]() Our company is planning to introduce a Car Leasing scheme for employees wherein employee can purchase the car under compannies name and can save some tax on it . We are in negotiation with 3 -4 companies Hertz , ALD & Arval India they have offered us cars on Fully maintained basis where in they also undertake responsibility for maintaining the car upto the mileage specified by user typically 45 K or 60 K over a period of 3 year i.e. the lease duration . End of the 3 years car reverts back to Lease company wherein user has an option of car buyback at prevalant market price . Therein other options also of Fixed RV but typically they are variations of same . Where I need help is in terms of experience of other members with any of these company and how good & efficient there are in terms of executing their promised. Any suggestion or expereince is most welcome ![]() |
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![]() | #42 |
BHPian ![]() Join Date: Jun 2007 Location: Fremont
Posts: 484
Thanked: 67 Times
| ![]() You might want to check with LeasePlan - my personal experiences with them has been satisfactory. It is head-quartered in Gurgaon only and it should not be a big hassle for your company's folks to contact them and get a quote from them too. |
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![]() | #43 |
BHPian ![]() Join Date: Jan 2006 Location: Bangy
Posts: 642
Thanked: 23 Times
| ![]() I plan to get a company lease for my new i20. Here are the details I could gather. Let me know if I am missing something here. Lease amount: Rs 6,00,000 Duration: 36 months Monthly EMI: Rs 18,642 Total EMI paid: Rs 6,71,112 Amount to be paid after 36 months to get possession of car: Rs 60,000 (10% of lease amount) Perquisite value: Depreciated value - 60,000 = 2,47,200 (assuming 20% depreciation) IT to be paid on perq value:~ Rs 83,060 (@33.6%) Total outgo: Rs 8,14,172 IT saved on EMI: ~ Rs 2,25,490 (@33.6%) Net outgo after 36 months: Rs. 5,88,682 (after considering saved IT) In addition I can claim up to Rs 14,000 per month on operating expenses such as fuel, maintenance/repair, driver salary and cleaning expenses, which is tax free. (This facility is available even if I dont have a company lease). FBT will have to paid on this though. |
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![]() | #44 |
Senior - BHPian ![]() | ![]() It looks like a good option for lease if what mentioned above are accurate. |
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![]() | #45 |
Senior - BHPian ![]() Join Date: Jul 2006 Location: Bangalore
Posts: 1,531
Thanked: 130 Times
| ![]() @appuchan - yes you are right. Most corporate leases lets you claim tax benefits on the Fuel,Maintenance and Insurance and (if you have one) chauffeur's salary. Bring that into the picture , and the cash benefits of leasing can be substantial. There are added benefits of corporate schemes with corp discounts & discounts on insurance. |
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