[TusharK]

Nissan has partnered with ORIX to offer the Magnite, Kicks and Datsun Redi-GO on a subscription basis.



Monthly subscription plans for the Magnite and Kicks start from Rs. 17,999 and Rs. 23,999 per month respectively. Plans for the Redi-Go start from Rs. 8,999 per month. At present, these plans are available in Delhi NCR, Hyderabad and Chennai. The company plans to introduce them in Bangalore, Pune, Mumbai in the next phase.



The subscription plans come with zero down payment and include vehicle insurance, registration fee, road tax as well as RTO expenses. Maintenance costs (scheduled and unscheduled repairs, tyre and battery replacement), 24x7 roadside assistance and the cost of paperwork are also included in the subscription fee.

Customers have to pay a refundable security deposit at the start of the subscription. The cars come with a white number plate. The company also offers a buy-back option.

The 'Nissan Intelligent Ownership Subscription Plan' is being offered in Delhi NCR, Hyderabad and Chennai. It will be launched in Bangalore, Pune and Mumbai at a later stage.

[m8002?]

How does this compare to the leasing in US and Europe?
My understanding was that there is a approximate 10% downpayment and monthly around 1% for 36 month lease.
Here, its around 2% per month which I think is very high. However, this covers the insurance, maintenance, etc.

[charanreddy]

Finally a leasing plan that makes even a little bit of sense..

INR 18 K is not bad. Typically, we pay INR 2K per lakh for a Car loan as EMI.

How long before a customer owns the car ? Also is there a minimum lease period ??

[MinivanDriver]

I would be very interested in knowing the details. Unless the car is registered to the subscriber from the beginning, would the white plate be legal? Looking forward to hearing from fellow bhpians on this.

[locusjag]

Originally Posted by m8002?

How does this compare to the leasing in US and Europe?

Incidentially, I had purchased an ex-lease Nissan Rogue in 2013 in the US. OEMs have these conditions over there typically-
* 3 year, 36,000 mile limit on the lease
* A 1 cent or 2 cent per mile penalty for every mile over the 36,000 mile mark
* Strict clauses concerning premature breakage of the lease (not sure what terms are imposed exactly, but I'll always remember Breaking Bad's Walter White lying to Skyler about his having supposedly taken that shining new Chrysler 300 sedan on a lease which he cannot prematurely return because of the "iron-clad terms & conditions of the lease")

[dark.knight]

When something is too complex, go for the simpler option, and in this case, it is buying the car.

Leasing has only 2 benefits, no headache of resale, and no maintenance headache, but keep in mind that complex calculations and planning have been done before fixing the lease price, the company has to make money+compensate for loss of interest+profit on servicing, no one on earth wants to break even.

Lack of outright funds is the only reason to lease, otherwise owning a car and selling it when it's time comes is the wisest decision.

[84.monsoon]

Nissan has apparently not confirmed the lease period! That is a glaring omission. See:

https://www.cardekho.com/india-car-n...onth-27260.htm

The good thing is that it appears there is no additional down-payment, insurance costs, registration fee, road tax, and RTO expenses payable. Also maintenance costs, repairs, tire and battery replacement, 24X7 roadside assistance, etc. are all are included in the monthly plans. The plan is floated by Nissan with Orix as their partner. I recently leased my Mahindra Thar through Orix as part of my office car lease scheme. ORIX service is good and they take care of home pick-up and drop off of the vehicle for routine service etc.

Did some back of the envelope calculation with the Magnite XV Pre- Turbo CVT as an example. The monthly rental is Rs. 25,299. The ex-showroom price is Rs. 990,000. My guess is that the lease term is 72 months (6 years) or 5 years with a back-loaded buy-back option. This would result in a total outflow of Rs. 18,21,528 - Reasonable considering the repair/insurance/service costs and cost of capital. For those with a small business and able to charge the lease costs to operating expense and get a tax deduction, that sweetens the deal.

[GTO]

Originally Posted by charanreddy

Finally a leasing plan that makes even a little bit of sense

I concur! Not just that, but I found the Redi-GO at 9k to be fair for someone on a budget. Best part is, if you are an entrepreneur, the business straight away gets 25 - 30% off the price in tax benefits, as this is a direct expense. Just to put things in perspective:

+ 9000 Redigo Lease
- 2700 straight tax benefit to my company @ 30%
- 1000 monthly insurance cost (as its included)
- 500 monthly maintenance cost (averaged at 6000 a year)
- 400 monthly tyre cost (included in the lease)

In effect, my Redi-GO costs me merely 4400 bucks a month! That is like one dinner at a popular restaurant like Copper Chimney. And it's not even counting the interest I'd earn on my saved down payment of 1 lakh rupees, although Nissan hasn't shared the "deposit" required for this lease.

This is perfect if I needed a cheap beater, a 2nd car in the house or a short-term rental (cost is way lesser than any of the self-drive rentals).

Originally Posted by dark.knight

Leasing has only 2 benefits, no headache of resale, and no maintenance headache

Also for businesses who not only get an immediate tax benefit, but can also use the saved down payment for investing. Leasing can make sense for shorter-term usage too.

But yes, for people like you & me who hold onto cars for 10 years, buying is best .

[aargee]

Originally Posted by dark.knight

When something is too complex, go for the simpler option, and in this case, it is buying the car...Lack of outright funds is the only reason to lease, otherwise owning a car and selling it when it's time comes is the wisest decision.

These days, even more wisest decision is...not buying a car!!

Even if I had 15L bank balance, I make a meagre ~6000 a month for 5% interest. And use that money to commute on Ola/Uber. For long hauls use flight/train by AC tier.

Ofcourse, this does not apply to crazy drivers like us; but for the masses who drive from point to point, this makes absolute sense to spend money elsewhere. Spending 15L on car + insurance every year + tires every 4-5 years + maintenance + the biggest expense of all - F.U.E.L + toll makes absolutely ridiculous cost of owning a car as well

Even for a crazy car lovers, we do that long enjoyable drives max 4 times a year. The cost of EMI/out right purchase really pains to see other times car under covers sitting idle in garage. Or best way like GTO says - USED CAR. Makes best of both world, although the maintenance, fuel, toll & tire costs cannot be saved, something like making loss less in a dying business!

[Turbanator]

It does say -10,000Km/ 48 months. This mileage looks to be too little for most unless there is a mistake in understanding and this is per Year.

https://www.nissan.in/nissan-intelligent-ownership.html

[dark.knight]

Originally Posted by GTO

I concur! Not just that, but I found the Redi-GO at 9k to be fair for someone on a budget. Best part is, if you are an entrepreneur, the business straight away gets 25 - 30% off the price in tax benefits, as this is a direct expense.

But yes, for people like you & me who hold onto cars for 10 years, buying is best .

Exactly, it'll make sense only when there are tax benefits, in outright ownership there is capital depreciation benefits as well, the only kicker is that now service charges cant be written off as expenses. Somehow we've broken even on every car ownership till date by doing that, only expenses are for fuel, insurance and cleaning charges.

I either hold long or sell if there's an exceptional offer by known people, cars have been good to us that way, mainstream models lose very little in resale after accounting for tax benefits.

Originally Posted by aargee

These days, even more wisest decision is...not buying a car!!

Ofcourse, this does not apply to crazy drivers like us; but for the masses who drive from point to point, this makes absolute sense to spend money elsewhere. Spending 15L on car + insurance every year + tires every 4-5 years + maintenance + the biggest expense of all - F.U.E.L + toll makes absolutely ridiculous cost of owning a car as well

Even for a crazy car lovers, we do that long enjoyable drives max 4 times a year. The cost of EMI/out right purchase really pains to see other times car under covers sitting idle in garage. Or best way like GTO says - USED CAR. Makes best of both world, although the maintenance, fuel, toll & tire costs cannot be saved, something like making loss less in a dying business!

I agree, and I'm far from a crazy car guy these days, there is a premium I'm willing to pay to reach a destination in comfort and with autonomy and that is the price of an automobile. I believe some part of the investment on tyres, service and maintenance will come back to us via resale.

I've an infallible logic these days - make the car work for you, make life easier with it, and let it go with respect when the time comes, a lakh or 2 here and there doesn't matter once it makes our lives easier.

My opinion would be the same in these times, don't buy a car unless you can buy cash down and afford the fuel easily.

[fazayal]

Originally Posted by MinivanDriver

I would be very interested in knowing the details. Unless the car is registered to the subscriber from the beginning, would the white plate be legal? Looking forward to hearing from fellow bhpians on this.

Leased cars have white number plates. Leasing companies like Leaseplan, Orix, ALD etc. have been leasing cars to companies and they have been white number plates.

[aargee]

Originally Posted by dark.knight

I believe some part of the investment on tyres, service and maintenance will come back to us via resale

Very negligible is hard truth

Originally Posted by dark.knight

I've an infallible logic these days - make the car work for you

You mean like leasing to Myles/Zoom car? I'm sure you don't mean that, but trying to understand how to make car work for us otherwise

Originally Posted by dark.knight

a lakh or 2 here and there doesn't matter once it makes our lives easier

True that car makes life a little easier, but with congested infrastructure & not so enjoyable drives, these days have become menace & extremely frustration than enjoyable is my experience

Originally Posted by dark.knight

My opinion would be the same in these times, don't buy a car unless you can buy cash down and afford the fuel easily.

These days, cash down sounds easier than affording for fuel Corona has taught how much unbelievable money can be saved just by not taking out the car.

Again, outright, outright, outright purchase is THE BEST way to buy & that comes from a person who paid a lot, a lot through EMI with blood tearing eyes & only to realize it & close it in 47/84 months!! What a great relief that was!!

[jithin23]

Originally Posted by Turbanator

It does say -10,000Km/ 48 months. This mileage looks to be too little for most unless there is a mistake in understanding and this is per Year.

https://www.nissan.in/nissan-intelligent-ownership.html

I just checked it, it says 10k kms per annum/ 48 months tenure.


I also did the math for leasing a Magnite CVT. The price in Delhi is 23,231 an for 48 months it's summing up to Rs.11,15,088. Seems to be kinda expensive and Nissan is offering only Top 2 variants in this scheme. They haven't mentioned what would be the residual value(depreciated value) once the tenure is over. I

Buying the car outright costs Rs.10,05,717 as per car wale.


Leasing works for those who shift cities often or those who can claim tax benefits or who change cars often and don't clock serious miles. Plus less headache on maintenance, insurance

Going through corporate lease is actually not sensible because at the end of the tenure, you need to pay an extra amount to buy back the car which is in fact a loss. Also, the one whose leasing the car will be the 2nd owner legally (technically 1st owner) and will cause a huge impact on resale as only a few people are aware of leased car concept in India.

Unless I'm running a business, I'd outright buy my car because it does not come with any restrictions or conditions and I can use it or mod it the way I want. Plus I can travel even 30k kms in one year and 10k the next year and so on.

Edit: Just checked in detail and the cities available for subscription are Delhi-NCR, Hyderabad, Mumbai, Pune, Bangalore and Chennai. Km range varies from 10,000kms; 12,000kms; 15,000kms and 18,000kms per annum and Tenure is in either 24, 36 or 48 months.

[tarik.arora]

Pardon my ignorance, is lease payment taxed under GST? If yes, will there be GST (18%?) applicable over the monthly cost shared by Nissan. This can further complicate the buy vs lease equation.