[LastActionHero]

Originally Posted by autocrat

There is one more aspect to car lease - tax savings. The car lease expense is tax-deductivle, so 30% of your EMI amount is tax exempt. Also, for a leased car, other car related expenses (insurance / maintenance / fuel) can be exempt from tax, if the car is leased to a company.

In effect, if you are an entrepreneur, if u pay lease of 80000 per month, you save 24000 in taxes straight away. in 3 years the savings is 8.6 lacs. If you factor this, then going for a lease is much better option than going for outright purchase.

The leasing agreement must be scrutinized well, though, as each leasing company has slightly different fine print.

The EMI is exempt only if you lease a car from your employer and not directly from Mercedes. The other route it to take a lease on your company name and get depreciation benefits.

[manishk123]

Originally Posted by LastActionHero

The EMI is exempt only if you lease a car from your employer and not directly from Mercedes. The other route it to take a lease on your company name and get depreciation benefits.

On a lease the car is technically not owned by you, hence no depreciation benefit. Mercedes or whoever the lease provider is, will get the depreciation. You get to show the lease amount as an expense - which is fine if you're part of a big corporate firm like Tatas, Reliance etc, but for the smaller companies the taxman will surely create headaches and ask you to prove that you have been using the car only for official purposes or they will disallow the tax write off too. Not worth the headache for us regular folks.

[rubicon]

An official document with an EMI comparison between Finance & Lease options from Mercedes.

[k_nitin_r]

Originally Posted by sam003

who will pay for damages if entered in Lease.

If the system works like most other parts of the world, I believe the insurance will pay for most of the damages and you would have to pay for incidentals. My only experience in dealing with an insurance firm in India had me pay for the depreciation on the required parts plus a part of the towing. I believe the rent would cover the depreciation and an incidental fee would help pay for the towing.

[DudeWithaFiat]

Let me make sure I got it right. After the 3 years of lease, the customer still do not own the car, right? If thats the case, its a definite fail move by Mercedes. With the lease amount provided by '@vcash' , one can avail an SBI car loan with a much lower EMI and at the end of the loan period, the car is ours.

[sanjeev.d]

Bearing in mind all the possible norms like monthly EMI payments, down payment and high market price we still can fare some savings under the lease option. Likewise from a company cash flow perspective, leasing is a better & advantageous option as its helps keep up the cash flow with higher savings matched to other finance options. In addition to that we have the flexibility to upgrade to a new car every 3 years.
I just happened to find a new mailer where the firm is explaining the Star lease in detail.

Here’s what I congregated from all the latest circumstances which can help us understand Star Lease better:

[ACM]

I dont see the Merc holding on to about 45% of the original value after 3 years so the savings on a lease could be even higher I guess the Merc guys didn't want to show that the car would actually depreciate in value even more that what is shown to compare vs a lease plan. Also this could be offset by a lower sale price itself when the car is sold on a normal loan or outright purchase.

[ajit_72]

Where did you get these numbers from. Because the costiong that we got, according to that they charged us almost 100% cost of the car in 3 years

Originally Posted by sanjeev.d

Bearing in mind all the possible norms like monthly EMI payments, down payment and high market price we still can fare some savings under the lease option. Likewise from a company cash flow perspective, leasing is a better & advantageous option as its helps keep up the cash flow with higher savings matched to other finance options. In addition to that we have the flexibility to upgrade to a new car every 3 years.
I just happened to find a new mailer where the firm is explaining the Star lease in detail.

Here’s what I congregated from all the latest circumstances which can help us understand Star Lease better:

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