According to traditional mindset, purchasing is always more desirable than renting. Especially when it comes to major possessions such as a car, the purchase is accompanied by immense pride and fanfare. However, the millennial generation in India exhibits a marked preference towards renting or leasing, while the concept of purchase has comparatively faded. Seemingly, the concept of leasing is here to stay in the long run- thanks to the rising number of start-ups that help you rent almost everything under the sun. Needles to say, this trend is fast catching up even as far as vehicles as concerned. It kick-started with corporate leasing at the initial stage for senior executives in multinational companies, which was practised by luxury carmakers. Eventually, it became the norm in corporate India, and the concept has now taken the form of retail, thanks to companies like Mahindra and Mahindra who are offering some of their models on lease to customers directly.
According to market insiders, in the contemporary times, mobility is the key and the transformation is happening quite fast. The demand is emerging significantly from ride hailing companies like Ola and Uber as well as car sharing companies. Besides, car leasing companies are also adding to the demand. With sound understanding of this growing demand, car manufacturers are showing a keen interest in entering this business model.
The fundamental thing is, by leasing a car from the best car leasing companies in india, you can drive it without actually buying it or paying a huge amount. When you lease a car, you only need to pay regular monthly instalments till the time you choose to keep the car. These instalments include the cost of the vehicle, car leasing with insurance, maintenance, applicable taxes, and other recurring costs. Generally, no down payment is involved. You can take your pick from two leasing models- finance leases and operating leases. Corporate leasing usually follows the latter in which you have to either return the car to the lessor or purchase it at the prevailing market value when the lease tenure terminates. On the other hand, the finance lease model transfers the ownership of the car to your name at the end of the tenure. It is interesting to note that most salaried people are attracted to leasing since it gives a tax benefit of up to 30% as you can claim the entire rental as an expense.
