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Old 4th February 2020, 20:58   #661
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by dilsoft View Post
So resale value of Nexon EV is just 3.74 after 3 years?
I don't think that's a correct assumption. Only someone who leases the car paying 49K EMI gets to buy back the car at 3.74L after three years. If that person does not buy it back, the company will definitely offer it at a higher price to others.

In a three year old Nexon EV, I am assuming not much parts need replacement. Suspension maybe. Battery which is the most expensive part has a 8 year warranty.

Renovating a three year old EV, the company will expect it to sell at 7-8 lakhs, as per my calculation.
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Old 4th February 2020, 21:43   #662
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

In any case, based on your lease calculations one will lose around 11 laks in just 3 years.. its a BIG depreciation
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Old 4th February 2020, 22:07   #663
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by dilsoft View Post
In any case, based on your lease calculations one will lose around 11 laks in just 3 years.. its a BIG depreciation
Normally all leases works like that. Even if it is an ICE car, at the end of the lease period, you will be given an option to buy the car by paying an amount which will be very much less than the resale value of the car. And that is one of the benefits of leasing a car.
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Old 4th February 2020, 22:10   #664
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by dilsoft View Post
In any case, based on your lease calculations one will lose around 11 laks in just 3 years.. its a BIG depreciation
How does other car subscription plan comes to?
I can see comparable car Creta (Diesel, manual) coming to 47k per month in this link

If these are industry rates, then a Nexon EV (non polluting, Automatic) at 49K seems a far better deal.
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Old 4th February 2020, 23:32   #665
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by DarthVeda View Post
1. Yes
2. Yes
3. If you return you get nothing, think of it like you bought the car and sold it for it's resale value. To keep the car, it's 3.74L
4. Yes

I chose XZ+ model
@DarthVeda and others,
The calculation/assumptions are a bit off:
Sec 80EEB for individual tax payers:
1) allows "deductions" from taxable income limited to Rs1.5L per FY (remember, not tax payable).
2) This Rs 1.5L is limited to the interest paid on loan taken to buy an EV.


Say, somebody's marginal tax rate is 30%, when he/she claims full 1.5L deduction, will save atmost 1.5L * 30% = Rs.45,000 per year.



I'm keen to understand how on a "lease" of Rs.15.768 lakhs over 3 years (Rs 43.8K per month), you'll be able to save Rs.4.73 lakhs in taxes.


I'm keen to sign up for this if there's a way.
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Old 5th February 2020, 09:11   #666
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by shawshank View Post


I'm keen to understand how on a "lease" of Rs.15.768 lakhs over 3 years (Rs 43.8K per month), you'll be able to save Rs.4.73 lakhs in taxes.

I'm keen to sign up for this if there's a way.
For saving tax thru company car lease scheme you need to have your company agree to pay the lease charges directly to the leasing company, so the amount never appears as part of your income. Thus the entire amount paid to leasing company is considered an expense by your employer, non-income by you (thus no tax).

At the end of tenure, the leasing company would have depreciated the car in it's books, thus willing to transfer it at book value to you. So, you pay only that money from your 'tax paid' income!!

Can work well, only if you can convince your employer to provide you the facility.

Last edited by hkollar : 5th February 2020 at 09:29. Reason: Speeling mistake.
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Old 5th February 2020, 09:49   #667
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by hkollar View Post
Thus the entire amount paid to leasing company is considered an expense by your employer, non-income by you (thus no tax).
The amount saved in taxes will only be 30% of the lease emi.
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Old 5th February 2020, 11:03   #668
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by zhopudey View Post
The amount saved in taxes will only be 30% of the lease emi.
30% of 15.77 lakh is 4.73 lakh, on the top of it lessee also saves Health & Education Cess on the tax amount which comes around 19000.
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Old 5th February 2020, 11:39   #669
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

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Originally Posted by zhopudey View Post
The amount saved in taxes will only be 30% of the lease emi.
You save 30%+cess on the amount paid as lease.

Your employer writes of entire amount paid for lease as an expense. But, i think there will be some small perquisite tax that company has to pay.
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Old 5th February 2020, 12:42   #670
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

Quote:
Originally Posted by shawshank View Post
@DarthVeda and others,
The calculation/assumptions are a bit off:
Sec 80EEB for individual tax payers:
1) allows "deductions" from taxable income limited to Rs1.5L per FY (remember, not tax payable).
2) This Rs 1.5L is limited to the interest paid on loan taken to buy an EV.


Say, somebody's marginal tax rate is 30%, when he/she claims full 1.5L deduction, will save atmost 1.5L * 30% = Rs.45,000 per year.



I'm keen to understand how on a "lease" of Rs.15.768 lakhs over 3 years (Rs 43.8K per month), you'll be able to save Rs.4.73 lakhs in taxes.


I'm keen to sign up for this if there's a way.
The EMI of lease isn't considered as part of your salary, and disappears from payroll. It is an expense borne by the company on behalf of you, in petrol/diesel, you can claim the fuel as reimbursement further bringing your taxes down. However, in Electric you miss out on that but you miss out on paying for petrol/diesel in the first place itself
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Old 5th February 2020, 12:53   #671
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

Quote:
Originally Posted by dilsoft View Post
So resale value of Nexon EV is just 3.74 after 3 years?
MG is offering 50% guaranteed back after 3 years. So that's around 11.5 Lakh back for top variant.

Am assuming Tata also should have similar resale value then? Around 8 lakh for top variant?
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Old 5th February 2020, 14:00   #672
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

It's residual value not resale value for Lease, it's not dropping off a cliff here.
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Old 5th February 2020, 14:01   #673
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

Most of the people here who are calculating resale value of Nexon EV are unaware of the fact how lease works.

For example, Sample Seltos Leases Calculation (ARTICLE: Lease OR Loan? Which EMI is better for you)

Purchase prices at the end of tenure is Rs.1.80 Lakhs, which is not resale price of seltos after 4 Years.
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Old 5th February 2020, 14:49   #674
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

Test drove the Nexon EV today and i have applaud Tata for their efforts. Very punchy acceleration between 20-80kmph. Assured wheelspins if the steering is not pointing straight ahead but only in Sport mode.
Turn the knob into Drive and it has almost similar power to a Tiago petrol. Good brake regen that acts similarly to egine braking in both modes.
NVH levels are absolutely zero with windows up and music running on slow volume. You only hear the motor whine when there is no music. The only addition Tata could have done is to give it some sort of creep mode. It really helps in traffic.
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Old 5th February 2020, 15:04   #675
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Default Re: Tata builds a Nexon EV. EDIT: Launched at ₹13.99 lakhs

OK.. so finally it is the interest that you save in 3 years as tax exemption.
But please note with the new tax system , some of these tax exemption provisions are being removed. IT did not specify what are those yet but most of them are removed in the new tax slab and it was predicted that old tax slab system will be eventually removed.
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