Leasing a vehicle is no longer a taboo, but does it work for you?
Vehicle leasing is gaining more and more popularity these days. It gives you the opportunity to drive a new vehicle without paying a large amount of cash or taking a loan.
The primary allure of leasing vehicle in India is you don’t need to pay for or finance the entire cost of the vehicle. Here you are simply paying for the use of that vehicle for a specific period of time, which is often two or three years or as long as five or six years. However, it is not precisely renting, but the principle is similar.
So, if you are in the market for a new car, you would probably be wondering if you should lease or buy it. Just like any other aspects of getting a car, vehicle leasing can be either a great opportunity or a trap, as it depends on how you approach it.
Read on further to better understand if and how vehicle leasing in India works for you.
Leasing Is Better Than Buying
Leasing a vehicle is a better option than buying one when you:
- Don’t have enough cash to buy the car.
- Wish to drive a vehicle that’s out of your purchase price range.
- Won’t likely exceed the mileage limit (usually between 10,000 and 15,000 miles per year) mentioned in the contract.
- Can take good care of the car’s interior & exterior, paying specific attention to avoid nicks, spills and other cosmetic damages.
- Expect to lease another car when the current contract of your vehicle expires.
Car Leases Make Great Option for Frequent Upgraders
If you want to drive a new model car, leasing would be the best choice for you. The flexibility and lower up-front costs of leasing vehicle in India are tailor-made for drivers who upgrade their rides frequently.
However, if you plan to keep your next car for many years, then leasing would probably not be the best choice for you. But if you plan to upgrade to a newer model in a couple of years, then leasing is definitely worth considering.
Leasing Vehicles May Be a Smart Choice for Business Owners
If you are a business owner, leasing a car may prove to be more advantageous than buying one. As when you buy a car, you get into a capital-intensive area. While on the other hand, when you lease a vehicle, you’re able to invest your finances into your business and improve your cash flow. Thus, one of the ideal aspects of vehicle leasing is you gain an extra line of credit, which means you can free up money to use in your business and offer a solution to cash flow issues.