We perform the task of putting your dream car at your doorstep in the most comprehensive and cost effective manner for every car and every time.
The Concept of Car Leasing
Very important note to be made is that car leasing is not the same as renting. It’s simply a form of auto financing, although a bit more complicated than buying a car with a loan.
If you understand how it works, you’ll be better prepared to make intelligent decisions about leasing.
Lease concept is simple and easy to understand. Consumers are very sceptical and reserve themselves from the knowledge of leasing model. Hence leasing is very much misunderstood for the “rent-to own” hatched up by the clever dealers.
Leasing is a common financial concept that has been used the business world for a decade now. Mainly leasing is used for financing equipment’s, buildings, or vehicles. Leasing a car has been introduced in the market general for about 30yrs now.
Understand How Car Leasing Works:
Leasing is a method of financing, similar to a loan. It would be a mistake to think that consumer car leasing is like apartment leasing, apartment renting, or car renting. It is not. It’s unfortunate that the same terminology is used. The differences are so significant that any attempt to try to understand one by drawing on your knowledge of the other will only result in a serious misunderstanding.
Advantages of Leasing
• Driving a new vehicle every two or three years with no major repair risks
• Rent a car of your choice
• No burden of down payment
• Tax saving on leasing a car. (For self-employed individuals or businessmen the entire lease rental paid is eligible for deduction under the tax provisions. You can claim the entire lease rental as an operating expense in the Profit & Loss Account)
• The lease rentals are lower than the EMIs paid for the loan servicing
• The individual does not have to worry about the resale of the car and can thus plan his upgrades easily
• Theft and Total loss coverage
• There is no down payment in a lease. Therefore, it is freed up capital which you could otherwise use for investing in your business interests
Leasing is only an option for financing brand new cars, not used cars
• Leases and purchase loans are simply two different methods of automobile financing
• Car leasing is not renting as many people seem to think. It’s not at all like apartment leasing
Safe Driving: All chauffeurs undergo training on safe driving, which covers topics like various defensive driving techniques, traffic rules, driving under different kinds of weather, and special driving situations. Grooming and Hygiene: The chauffeurs are educated on the importance of hygiene and grooming. It covers topics such as dress code, grooming and maintaining personal hygiene. Body Language: Each and every chauffeur is trained to exercise the right body language while at work. Service Cycle: All chauffeurs are trained exhaustively on the Java service cycle.
Our Core Values:
• Safety First
• Service to the Customer
• Respect for the Individual
• Excellence in the Pursuit of our Goals
Leasing VS Buying
If you enjoy driving a new car every three years, want lower monthly payments, like having a car that has the latest safety features and is always under warranty, don’t like trading or selling used cars, don’t care about building ownership equity, have a stable predictable lifestyle, drive an average number of miles, properly maintain your cars, are willing to pay more over the long haul to get these benefits, and understand how leasing works, then you should LEASE
You have a choice of not making a down payment, you pay sales tax only on your monthly payments, and you pay a financial rate, called money factor, that is similar to the interest on a loan. You make your first payment at the time you sign your contract for the month ahead. Your next payment is due a month later. At lease-end, you may either return the vehicle, or purchase it for the part of the value that you haven’t already paid. The purchase price is stated in your contract at the time you sign
When you lease, you pay only a portion of a vehicle’s total value, which is the part of the value that you “use up” during the time you’re driving it
If you decide to return your vehicle, you may be charged a lease-end disposition fee, and for any excessive mileage or wear-and-tear, the details of which are spelled out in your lease contract. Purchasing your vehicle avoids these fees
If you don’t mind higher monthly payments at first, like owning your cars for more than 3 years, prefer to build up some trade-in or resale value (equity), enjoy the idea of having ownership of your car, like paying off your loan and being payment-free for a while, don’t mind the unexpected cost of repairs after warranty has expired, drive more than average miles, prefer to drive your cars for years to spread out the cost, like to customize your cars, or you might have lifestyle or job changes in the near future — then you should BUY
Monthly loan payments are always higher for a loan than for a lease about 60% to 110% higher for the same car. You typically make a down payment of 10% to 20%, pay sales tax on the full purchase price, and pay a loan interest rate determined by your loan company, based on your credit score. You make your first payment a month after you sign your contract
When you buy, you pay for the entire value of a vehicle, regardless of how many miles you drive it or how long you keep it. You can pay cash or get an auto finance loan
Later , you may decide to sell or trade the vehicle for its depreciated resale or trade value, which may be considerably less than the vehicle’s original cost. The feasibility of selling or trading before loan completion depends on your equity of your vehicle’s current value versus your outstanding loan balance. If the loan balance is higher, you have negative equity that is not good. Otherwise, you have positive equity
Residual Value: in case the residual value of a car isn't known, we've provided a calculation based on the lease term or length. If the actual residual value is known, just overwrite the calculated value.
Money Factor: this is the equivalent of an APR (Annual Percentage Rate) on a loan. In fact, multiplying the money factor by 24 reveals the effective interest rate on the lease. Likewise, if the interest rate is divided by 24, this reveals the money factor.
Lease Term: this is the length of the lease, stated in months.
Sales Tax: this is the rate of sales tax charged in the user's state