An efficient alternative to auto loans; vehicle leasing is now a globally preferred method for acquiring an automobile, providing a one stop solution for all vehicle needs.
Owning a car involves complicated procedures from dealing with the car dealer, maintenance workshops, taxation, insurance company, etc.
Vehicle leasing service centralizes these procedures and helps to significantly reduce administrative work and time along with financial advantages, comfort and flexibility.
SMAS India provides end to end vehicle leasing services from helping you decide the vehicle, financing, procurement, insurance premiums, maintenance, inspections, accidental repair, substitute vehicles and much more under one roof.
Why own a Motor Vehicle Fleet?
Are you paying the high cost of ownership and management of your motor vehicles, with a depreciating asset that requires costs in administration, funding, risk on disposal and impacts on your return on investment/assets?
A Sale and Leaseback with SMAI Fleet Leasing and Management can remove this cost of ownership and allows you to focus on your core business.
Sale and Leaseback enables you to sell the current fleet to SMAI, providing immediate capital for use in the business, without impacting on current funding lines as it is off- balance sheet. It provides immediate management of the fleet, consolidation of fleet running costs into a single monthly payment, cost control and reduces risk on disposal.
Benefits to Companies:
An operational lease is a rental agreement, based on ’usage’ rather than ‘ownership’ of the car. The vehicles are leased to you for a predetermined tenure and kilometer limit along with vehicle management services for agreed rent ensuring you hassle free mobility.
NO DOWN PAYMENT – The corporate(s) are not required to make any down payment for procurement of the car via a vehicle leasing policy while in case of loan; 10%-15% contribution is required. Therefore Company can use this margin money for its core activity and earn additional ROI
TAX SAVING – Company saves tax on the lease rental paid for the car taken on lease as with an operating lease, all rentals (Principal + Interest) are expensed off whereas in loan only interest portion gets expensed off.
NON CAPITALIZATION – Company doesn’t have to capitalize the asset(s) in their books and makes this option more suitable for them as a corporate. Non Capitalization helps company in budgeting and helps keeping their leverage ratio low.
MAINTENANCE OUTSOURCING – No Need for company to keep separate resources for maintenance/upkeep of cars. This can be outsourced to a leasing company.
HIGHER LIQUIDITY – Insurance and road tax are through monthly Rental Spread rather than cash outflow at one go. This increases the liquidity and company can meet its other important expenses.
VEHICLE DISPOSAL – A big relief as no hassle to dispose off the vehicles at end of the lease tenor. Leasing company can pick up the vehicles at end of Lease tenor and the risk of resale of the cars lies with the SMAS India.
Benefits to Employees:
Through SMAS India’s company leasing you get the opportunity to address key elements of Recruiting, Retaining and Motivation your employees in the very competitive human resource market. It’s investing in your employees and their peace of mind.
100% CAR FUNDING & NO DOWN PAYMENT – SMAS India arranges for full funding of the car value and employee doesn’t have to pay anything from the pocket to take the car on lease. The employees are not required to make any down payment to opt for the car under company car lease policy
TAX SAVING – All the eligible employees would be able to save taxes to the extent of the lease rental/EMI paid by them against their car. It means that the EMI amount payable by them towards the car would be tax exempted.
TAX SAVING ON MAINTENANCE ON THE CAR – Since the maintenance (with Tyres & batteries) are part of the per month EMI payable, employee enjoys the tax saving on each rupee paid by SMAS India for maintenance of the car.
OPTIONS TO PICK & CHOOSE THE VALUE ADDED SERVICES – Employees will have an option to pick and choose from the list of value added services. The best part, employee saves tax on each value added service cost.
INSURANCE PREMIUM PROTECTION FOR FULL TERM – The employees are not required to make any payment towards the insurance of the car as this would be done by Lessor and employees would also be able to save tax on the amount payable against the insurance premium. Employees would also be protected from Malice loading by the insurance company as the premium for the insurance will be fixed and part of monthly rental.
TEST DRIVES AT THEIR OWN PREMISES – All the eligible employees are free to take the test drive of any car at their chosen premises and as per their suitable time.
ENROLLMENT OF THE USED CARS – All the eligible employees are free to enroll their existing cars in the car leasing scheme in a hassle free way and they can start availing the tax benefits subject to terms and conditions of Sale & Lease Back Policy.
HASSEL FREE AND NO PAPERWORK REQUIRED FROM EMPLOYEE – Opting for the car on lease basis by the employee is a hassle free transaction as compared to going for a car on loan and also there is no paperwork required from the employee side to enroll for the car lease program.
FLEET CONSULTANCY – SMAS India does not only fund the car value for the employees rather provide the fleet consultancy to every employee on individual basis through group and personal sessions at the office premises.