If you love your car and it’s more than a mode of transportation – it’s an extension of your personality. And if you are the type of person who likes to change things up often, buying a new car every few years can be a lot of fun. But that also means spending a lot of money on something you may only use for a few months in a year. So, what do you do if you wish to buy your dream car without breaking the bank?

With SMASIndia car subscription, you can get your dream car with a customized monthly plan that won’t break the bank.

What is a car subscription?

A car subscription is a new and innovative way to get your dream car. You can subscribe to a vehicle for a fixed monthly fee and the duration of your choice. The subscription includes all maintenance, insurance, and registration costs.

With a car subscription, you have the flexibility to change cars as often as you want. If you get bored of one car, you can switch to another model. You are also not tied to any long-term contracts.

So if you are looking for a flexible and cost-effective way to get your dream car, then a car subscription from SMAS India is the best option.

The benefits of a car subscription

Here are our top five reasons why we think a subscription is the best way to get your dream car.

You can change your car anytime

The most significant advantage of a subscription over owning or leasing a car is that you can change your vehicle anytime. If you get bored of your current ride, or if you want to try out a different model, you can return your current car and subscribe to a new one. There are no long-term contracts or commitments, so you’re always free to change your mind.

Plus, with our flexible subscription plans, you can choose to upgrade or downgrade your car at any time.

All-inclusive monthly price

With a car subscription, everything gets included in one monthly price. That means you don’t have to worry about insurance, maintenance, or repairs. We also take care of all of that for you to enjoy driving your dream car. Plus, our all-inclusive prices include things like roadside assistance.

No down payment required

Another great benefit of a subscription is that you don’t need to put any money down, if you’re buying a car, you’ll need to come up with a down payment of 20% or more.

But with a subscription, you can start driving your dream car without any (without any upfront payment.) That means you can keep your savings intact and use them for other things.

You can cancel anytime

Another advantage of a subscription is that you can cancel anytime. So if your circumstances change and you no longer need a car, or if you’re moving to a different city, you can cancel your subscription. There are no long-term contracts or commitments, so you’re always free to change your mind.

If you are searching for the best way to get your dream car, a subscription is the way to go. With SMASIndia Car Leasing subscription, you can enjoy all the benefits of owning or vehicle leasing without drawbacks. So why not give it a try? You might fall in love with the freedom and flexibility of a car subscription.

Some tips for choosing the right car subscription for you

When it comes to selecting a car subscription, there are many things to consider. But with SMAS India, you can be sure that you’re getting the best possible deal.

Some tips to help you select the correct subscription for you:

Consider your budget: One of the most important things to consider when choosing a car subscription is your budget.

Choose the proper term: Another important consideration is the length of the subscription. Do you want a long-term or short-term agreement?

Consider your needs: What do you need from your car subscription? Do you need a car for commuting or leisure?

Compare prices: Once you know what you need, it’s time to compare prices. With SMAS India, you can be sure that you’re getting the best possible deal on your car subscription.

So if you’re searching for the best method to get your dream car, look no further than the SMAS India car subscription. We make it easy to get the perfect vehicle for you with our great deals and flexible terms. SMAS India provides the best car subscription service in India.

The car leasing industry is growing in India. Many people prefer to lease cars rather than buy them outright. There are many reasons for this trend, but the main one seems to be that leasing offers many advantages over buying. This blog will discuss the benefits of a car lease and why more and more people are choosing to lease their vehicles. If you’re considering car Leasing in India, this blog post is for you.

What is a car lease in India?

Customers in developing countries still desire to own a car for various reasons. Firstly, owning a vehicle is considered as a status symbol. Also, the option of using a company car is not available to most of them and most importantly, they lack awareness about options such as car Leasing.

Customers of mature markets are now leaning more on users than on ownership, having completed the first stage of the ownership evolution—vehicle leasing.

The barriers to entry for customers in India are considerably higher when compared to other markets, with the process being complex and bureaucratic. However, this is changing to make the process easier for customers.

These companies are helping spread awareness about car leasing and making it more accessible to people in India. Car leasing in India is still in its early stages, but it has the potential to Grow. This is because it offers many benefits to customers, including the ability to drive a new car without making a sizeable down payment and the flexibility to return the car at the end of the lease period.

Here are a few advantages of leasing a car from SMAS India are:

• You can get a brand new car without paying the total price upfront or down payment.
• Leasing a car from SMAS India is more economical than buying one outright.
• You can drive a luxury car for a fraction of the cost of owning one.
• You don’t have to worry about selling your car.

If you are thinking about car Leasing in India, SMAS India is worth considering.

The different types of car leases in India

The two most common car leases in India are financial leases and operating leases.

Financial Leases: In a financial lease, the lessee pays for the use of an asset over the entire lease term. At the end of the term, ownership of the asset gets transferred to the lessee.

Operating Leases: In an operating lease, the lessor retains ownership of the asset throughout the lease term. In the end, the asset returns to the lessor.

So, which type of car lease is right for you? It depends on your needs and objectives. If you wish to own the car at the end of the lease term, a financial lease is likely the better option. If you need to use a vehicle for a set period and don’t want the hassle of ownership, an operating lease may be the better choice.

Drive your business with a corporate lease

SMAS India offers a total financing of the medium and heavy trucks/buses at showroom pricing, with the best RV and loan rates. As per your business needs, we provide a comprehensive vehicle solution from end to end. We have an experienced fleet team to assist with all activities, from vehicle assessment and end-to-end vehicle leasing solutions.

The employee’s vehicle lease is directly deducted straight from their salary before taxes are collected. As a result, the taxable income decreases, lowering the payable tax amount. The employee can upgrade to a new automobile at the end of the contract.

With our corporate leasing services, you can enjoy all the benefits of owning a vehicle without any of the associated costs or maintenance responsibilities. We take care of everything from financing and insurance to registration and servicing, so you can focus on running your business.

Ending Note:

A car lease in India is becoming a more popular choice for those looking to get behind the wheel of a new car. If you’re considering leasing a car, SMAS India can help make the process easy and convenient for you. We offer a wide selection of vehicles from some of the biggest brands in the industry, and we are regularly updating our inventory to include the latest models. So what are you waiting for? Start your search today!

The COVID-19 crisis is an unprecedented one in the history of mankind and has stormed the entire world with a strong jolt. While it continues to create political and social turmoil, businesses are being affected at all levels. These sudden disturbances aren’t merely limited to corporates. Rather, they are impacting the consumers too! Against this backdrop, digital transformation has become the need of the hour for operational resilience. Comprehending and realizing the necessity to go digital, a bulk of the customer service businesses, including the automobile sector, are tuning up their online presence and infrastructure.

This is true especially in case of vehicle leasing service provider. Now, the digital revolution has cut the need to step out in search of leading vehicle leasing services in India.

Businesses are going digital and this is a universal disruption that is here to stay.

How are vehicle leasing enterprises coping with this industrial shift?

Car lease companies in India, such as SMAS India, have ramped up their digital operations to cater to their client base amidst the pandemic.

With the newfound vulnerabilities of the transportation & logistics sector, vehicle leasing service providers are now taking profound steps when it comes to online communication, sanitized vehicles, and optimized point-to-point customer service.

Vehicle leasing companies like SMAS India usually have an extensive base of corporate customers spanning across multiple industry verticals including IT, ITES, Manufacturing, Real Estate, Consulting, Hospitality, etc. They act as a crucial node for essential transport service lifelines for these businesses. Post the COVID, they are adapting well and fast to the pre-emptive measures for their clients and the integrity of their business ops.

 

The present scenario

There are several customized online portals facilitated by the corporate car leasing companies whereby the clients can inquire about their fleet requirements and transportation needs. These queries must be quickly addressed and responded by the customer service professionals working within the company. By shifting to the digital channels, vehicle leasing businesses are able to better serve the customers and bestow them with personalized and customer-centric solutions!

With an enhanced digital presence, vehicle leasing companies are now making it easier than ever for their clients to find tailored solutions to meet their needs. This is how;

Enquire, analyze and fulfil your vehicle leasing needs online!

The viability of leasing a vehicle or even a fleet can now be checked online with just a click. For instance, SMAS India’s team will get in touch with you instantly if you wish to inquire about the costs, benefits, conditions, etc. about powering your business with state-of-art vehicles.

Once you have compared and analyzed various features of a vehicle and thorough with the price estimation, you can easily initiate the process of vehicle lease as per the suitability of your business needs, and according to your capacity to invest.

Apply for Lease online

You will need to apply online for a vehicle lease, and once you have been approved, the vehicle leasing services Delhi will expedite the shipping of your lease documents. These documents need to be signed and simultaneously returned for the final procedure of availing a lease. Forget the hassles of offline processes and formalities. Lease the vehicles the smart way, which is online!

Closing note

Vehicle Leasing is now an even easier process with digital platforms, so why wait? it’s time to go out and put your vehicle leasing plan into action. Do not forget that your fleet leasing decision will payback the dividends over the next few years in addition to numerous intangible benefits to your organization.

If you are all set for the online vehicle lease and have been looking for a reliable car leasing company, you may consider SMAS India. We are a renowned corporate car leasing companies all set to enable transportation for your business with the utmost care, safety & precautions that COVID taught us. Connect with us now!.

Every business aims to reduce cost & expenses while earning higher profits. Transportation is one such wing that guzzles a lot of money, especially if the business owns the fleet. Be it for Corporate Travel, Freight, or Employee transportation, no physical business can run without seamlessly managed vehicles. But, often the owned fleet, its operation & maintenance costs more to business than being an asset of profit. This is the reason behind several SMBs and MNCs embracing the leasing of vehicles rather than owning them!

In fact, corporate vehicle leasing is a win-win situation for any business and the trend is picking up. The credit for the same goes to a range of incredible benefits offered by vehicle leasing services India.

Let’s analyze the benefits of partnering with a corporate vehicle leasing company India, especially if you are a business;

Lower monthly rental payments than a Vehicle Loan

Lease payments usually cost less than a regular vehicle loan. Vehicle leasing paves the way for capital savings, majorly in terms of down-payments & maintenance costs.  As an added benefit, most car leasing companies in India do not demand any security deposit nor a down payment from businesses they choose to collaborate with. Corporates are only required to make investments for the usage of the cars during the lease period, while the vehicle leasing company India shoulders the entire responsibility for the depreciation cost and the resale value of the cars.

Lucrative tax advantages

One of the most noteworthy benefits of corporate car leasing is tax advantages. On purchase of a car, it is mandatory to pay the relevant tax on the car, upfront. With a car lease, all that is required to pay is the tax on the business car lease as a portion of the monthly payment. Fortunately, this is also tax-deductible. If a business decides to opt for leasing cars there can be several deductibles based on a variety of expenses such as deduction in mileage or even maintenance fees. So, leasing cars is a financially wiser choice if you are looking to spend less on taxes.

Easy upgrade options available

Businesses need to constantly reinvent their strategies to stay ahead of their competitors. It is also important for them to keep upgrading their corporate facilities for the convenience of employees. Every 2 to 5 years, once the lease contract comes to an end, corporates have an opportunity to lease a brand new car from the corporate car leasing companies. Companies can choose to get the latest models & give their employees top-notch transportation facilities resulting in enhanced employee-retention rates.

Leasing vehicles is an essential aspect for the smooth running of business operations, and it is an economically viable and convenient option. Currently, as the lockdown ends, it has become vital for the businesses to ponder over car leasing.

Reasons why car leasing would be beneficial for the businesses post COVID-19?

Quality Corporate Transport at Much Cheaper Price

The economic shocker has hit businesses in all the industries during the national COVID-19 lockdown. As ‘Unlock Phase-1’ takes effect & businesses reopen, it is important for them to keep their expenditure at minimum & focus on ‘lean growth.’ Vehicle leasing gives them this opportunity where they don’t have to tie their cash in the down payments or maintenance expenses of the vehicles. They simply pay-per-usage of the vehicles & save on other costs.

Availability of Flexible Subscriptions

The world is undergoing an unforeseen crisis situation which has resulted in shifting the focus on the essential items. This implies that in the present scenario it is challenging to consider vehicle purchase. While on the other hand, Vehicle leasing services India is offering extended and flexible offerings. Hence, leasing a car has never been more convenient (due to the nominal cost of subscription that is devoid of maintenance charges and other additional expenses).

In Closing

Car leasing companies offer your business and staff the reliability, durability, and exceptional advantages of the latest car models at significantly reduced costs. Corporates opting for business car leasing are completely free to use their leased cars the way they want, with tailor-made contracts fitting all their needs and requirements.

If you are on your way to restart your business operations and fretting over meeting safe and comfortable transportation needs for your employees, try out the popular vehicle leasing company services of SMAS India- an end to end vehicle leasing and fleet consultancy service provider in India.

Stay safe & good luck for your business!

Any organization that requires commercial vehicles to function engages in some kind of fleet operations and fleet management. The main purpose of fleet management service is to oversee all fleet performance & fleet maintenance in order to increase productivity and help a business run as smoothly as possible.

SMAS India is an auto leasing company in Indiathat has a varied base of corporate customers spanning across multiple industry verticals such as IT, ITES, Manufacturing, Consulting, Hospitality, Real Estate, etc. with a service delivery capability in more than 50 cities.

Since its establishment, SMAS India has gone beyond vehicle leasing services. Today it provides a total vehicle management solution at the doorstep to its customers. It offers end-to-end vehicle management services that cover all the aspects of vehicle management.

So when you hire vehicle fleet solution from SMAS India, the fleet managers in-charge will take care of fleet operations that will include vehicle maintenance, asset utilization, Value Added Services, etc. They will also take care of the implementation of any programs that can increase your company’s productivity and decrease the instances of waste.

Now let’s get into the details of what SMAS India’s fleet management servicewill include.

Ability to Multi-Task

SMAS Team know how to juggle with various responsibilities & obligations seamlessly & simultaneously. They know how to balance everything to make the fleet run efficiently. With our clients wanting one thing, drivers suggesting some other things, and management having a variety of focus areas, such as safety, Economy, depreciation, SMAS Team are capable of juggling a multitude of demands and challenges all at the same time.

Great Time Management Skills

In addition to the ability to multi-task efficiently, SMAS Team also have great time management skills. With our customers ranging from upper management to the Users in the field, we know how to manage our time to satisfy both corporate and User’s needs, while completing our own work in order to keep the fleet running smoothly.

Result-driven Approach

SMAS Team are goal-oriented in every aspect of fleet management services and employ metrics, such, fleet utilization, Accident Claim Ratio, Service TAT’s etc. Being committed to achieving specific results, SMAS Team make decisions & govern their operations in accordance with these goals. Thus, it is their result-driven approach that pushes them to be creative while addressing the daunting and ever-changing demands of top-notch fleet management.

Strong Decision Making

SMAS Team have the capability to make decisive decisions- whether small or big. If in case a problem arises, they have the knowledge and confidence to think on their feet, act quickly and decisively. By making quick, calculative, cost-effective, and fact-based decisions, our team is able to embrace the change and stay ahead of the competition.

People’s Person

Our team is able to interact with people at all the levels of a company. SMAS Team have a great rapport with every level of management. We, as a customer-service business, deal with many different personalities and levels of management every day; thus, our managers thrive on navigating a diverse range of social interactions.

Accountable

With the reputation of the company ultimately resting on their shoulders, SMAS Team understand the importance of their role and thus, take their responsibilities very seriously. Hence, they create a culture that stresses accountability.

Innovative

SMAS Team are innovative and resourceful, and they know how to think out-of-the-box to develop new ideas. By being proactive and thinking beyond the current situation, they are able to anticipate both challenges & opportunities. Therefore, they possess a unique combination of analytical & conceptual abilities.

So, these were some of the things that you can expect when you hire our services. Being a leading auto leasing company in India, we know what it takes to deliver top-notch services at your doorstep!

Choosing the right vehicle fleet solutions for your business can have a great impact on your productivity and your profitability in this competitive marketplace. Working with an established vehicle fleet consultancy service providerenables your business to access professional guidance on the right vehicle options available for you. However, when it comes to choosing the vehicle leasing solution in India, there are a lot of questions that need to be asked to make the right choice.

Since there’s so much detailed information available which can make it difficult to weed out the important questions that you should be asking your fleet consultancy service provider, so, here we bring you the most important questions that you should ask your fleet management service provider.

How can you tailor your service around my business needs?

The right vehicle fleet leasing company is the one that can get you the vehicles you need, as & when you require them. A good place to start is by checking the number of vehicles, delivery times, and durations that a provider has vehicles for; this helps in ensuring that they can meet your needs.

The best service providers won’t just be ‘order-takers’ but also good advisers. It is a good sign if your vehicle fleet leasing service provider is advising you on which can be the most economical vehicle to meet your requirements. Usually, bigger service providers have strong partnerships with manufacturers so they may even find a vehicle which can be modified according to your business’s requirements.

Getting convincing answers to this question will give you an idea about how the service provider can fulfil your needs in the long-term.

How will you ensure the vehicle that you’re providing me works?

No one likes to pay for something that’s broken or doesn’t work for a considerable amount of time. It is an unavoidable fact that for smooth running, every vehicle requires continuous maintenance as they are subject to breaking down. So, to keep the costs of vehicle downtime to a minimum, you must ask your service provider about their process for breakdown cover, replacement vehicles, repairs & maintenance, servicing and manufacturer. Finding out whether your fleet solution provider owns their workshops and knowing about their location is also a good practice. This is because if any issue arises, knowing that there’s a workshop nearby that can give you back up is always helpful. The bigger vehicle fleet management service providers like SMAS India have nationwide coverage.

Factors like these can often influence how quickly your vehicle provider can get your business back on the track.

What is included in the price I pay?

For vehicle fleet solutionscheapest is not always the best! This is because service providers offering the lowest prices often tend to offer less as part of the package. So, going for the lowest price could lead you to pay in the long term.

Here are some of the significant services to look for that reputed vehicle fleet leasing service providers’ offer:

• Servicing & Maintenance
• Breakdown Cover
• Replacement Vehicles
• Road tax

So if you are planning to lease a vehicle, it would be worth checking the service provider’s policy on damages and excess mileage in order to avoid surprise costs. Any charges that you are paying to the service provider should be transparent. This will also make the running costs of the vehicle easier as you’ll know what’s included in its cost.

How can your services support my business’s growth and continued success?

Asking a service provider about their add-on services can actually help you to distinguish them from the others. If fleet management services are offered by the vehicle leasing company,then it should be a green flag as they can help you to reduce costs, increase efficiencies, and frees up your time that you or your team can utilize to focus on your core business.

Additional benefits that you can ask for are fuel cards, accident management, and insurance.

SMAS India can provide you with the best fleet management and vehicle leasing solutions in India that can be customized to suit your business’s specific needs.

The Automobile Sector in India is under severe crisis after experiencing nearly a decade of high growth. The sluggish demand, along with liquidity crisis, has only added to this stressful situation. And as the market continues to lose its appetite for demand, the situation is unlikely to improve in the near term; thus, auto majors are finding this going difficult and are now adjusting to the new normal.

While most automobile companies are constantly cutting down their production to reduce the inventory on factory premises and at dealerships, they are now focusing on the alternate markets to make up for the losses in the home market.

As per the report of The Society of Indian Automobile Manufacturers (SIAM)

Passenger Vehicle sales declined by 24.07% to 1.39 lakh units in August 2019 over last year. According to the reports, August 2019 was the 13th consecutive month since July 2018, when the automobile sales have declined.

As shared mobility is now becoming an intrinsic part of the urban mobility and a segment of buyers are staying away from owning cars, auto manufacturers are now seen investing in shared mobility and offering leasing options to attract buyers.

Read on to explore the significance of auto leasing India in this market slowdown.

Vehicle Leasing in the Market Slowdown

Various automobile companies have started offering vehicle leasing services in India to its retail customers. In a vehicle leasing scheme, corporate car leasing companies like SMAS India give you a car on lease for a certain period of time. Unlike a car loan, where the customers don’t have to worry about the huge down payment.

Under the car leasing, the entire maintenance, insurance and registration cost is usually borne by the vehicle leasing companies. Here the minimum lock-in period of leasing is two years and maximum it can be up to five years. So in vehicle leasing, instead of paying for the vehicle, the customer only pays for its usage value which is based on the pre-decided tenure and kilometres.

As we have seen above that auto sales in India continues to decline. And the latest numbers released by SIAM shows that there is a continuous slump in the automobile industry. The decline in the sale of cars and SUVs was mainly due to factors such as a slowdown in the economy, tight liquidity, and job losses; all these kept the buyers out of the market. Also, it has been observed that despite new launches, buyers seemed to remain out of the market.

Vehicle leasing industry, on the hand, was seen flourishing. According to a newspaper report, “The lease market is currently worth Rs 1,500 crore & is growing at a 15- 20 CAGR. And as per the luxury car companies, currently, personal and corporate lease segment comprises of approximately 15 per cent of their total sales.”

However, vehicle leasing might have a penetration of less than one per cent in India. But with young and millennial consumers who prefer ride-sharing services, the market has a promising future. The industry analysts say that there has been a shift in the mindset of people and because of this car leasing option and it is expected to gain popularity in the future.

Choosing Vehicle Leasing over Buying

When you buy a new car, you need to pay for the entire price of the vehicle using cash, car loan, the proceeds of a trade-in, or a combination of all three. But when on the other hand you lease a car, you just need to pay for the difference between the car’s price and its expected value at the end of the lease, plus interest and fees. For example, you find the perfect SUV with Rs 30 lakh price tag, and it is expected to be worth Rs 20 lakh after three years. So, if you lease this SUV, you just have to pay for the Rs 10 Lakh in expected depreciation, plus the interest and fees. On the other hand, if you buy it, you have to pay the full amount, i.e. Rs 30 lakhs plus interest and fees.

When the lease period ends, you can return the vehicle to the vehicle leasing company in India from which you got it. There may or may not be some lease-end costs, depending upon how much you’ve paid as security deposit while signing the lease. You will then have the option of purchasing your leased vehicle, lease a new vehicle, or just walk away. Thus, leasing a car is a better option than buying it.

Takeaways

The automobile industry in India is currently undergoing major revolutions at both- supply as well as the demand side. While self-driving cars and other auto variants are bringing new challenges and giving fierce competition to the market players, the shifts in ownership patterns are also not easy to adapt to. But the winds of change have already surfaced, and automakers have started working hard to surf the rising waves. In view of this, market awareness and readiness to lease might just prove to be a game-changer for survival in this scenario.

Other than renting a house, the traditional mindset has always been to purchase it. And for big-ticket possessions such as cars, the purchase is always accompanied by a lot of fanfare and pride. But if you enter millennial India, you’ll see the concept of purchasing or renting has taken a back seat, and leasing is the new normal.

Who would have thought that leasing was even an option to enjoy the luxury of having a car? But with the world undergoing a paradigm shift, it untapped its energies into establishing and providing better services for its customers; thus, leasing has paved its way into existence. Most industries have adopted this concept, and accordingly, they’ve structured their services in order to offer the best they can to their customers. And this concept of leasing is not only limited to houses and properties, but with the advent of MNC’s, start-up companies, and (precisely) vehicle leasing companies they have widened the scope of bringing in the concept of leasing vehicles.

Status Of Vehicle Leasing In India

Earlier, the concept of auto leasing India was limited only to the senior corporate executives that were known as ‘corporate leasing’ and were mainly for the luxury car brands. But gradually, with time, it has trickled down and become accessible to commoners and to middle-income families as well. Companies like Mahindra & Mahindra made some of their models available for leasing. Following this concept, several other car brands, including the luxury ones like BMW, Mercedes etc. have also opened their doors to offering this leased facility.

Car leasing is one of the most lucrative and fast-growing segments of the automobile sector in India. Although it currently represents only 4-5% of the market in terms of the absolute number of vehicles, it holds strong future prospects.

The growth of the auto leasing market in India is to ensure manifold growth in its CAGR by 15-20% in the coming decade. Corporate car leasing companies like SMAS India have made the concept of vehicle leasing simpler. In fact, you will be surprised to know that most car making companies are making about 40% of their business by leasing cars. Therefore, this has significantly helped in changing the mentality of customers and imbibed the fact that ‘why buy when you can lease it’!

Why has Vehicle Leasing Services in India gained popularity in recent times?

Introduction of Goods and Services Tax (GST) comes out to be a source of relief in time of distress for the Indian markets. It was introduced on July 1, 2017, with the aim of bridging the gap between rich and poor in the long run. And since its introduction times have changed for the consumers, dealers as well as for the manufactures- it has helped to bring stability and balance in the economy by considering every person and their transaction at par.

To understand its significance in the automobile industry, let’s consider an example.

When you buy a car on loan, it requires an initial down payment to the seller which is followed by instalments on a monthly/quarterly/annual basis. This down payment creates an extra outflow on the part of the buyer on loan along with additional instalments. On the other hand, no down payment is required when you lease a vehicle from vehicle leasing companies in India. This makes its overall outflow on the lower side when compared to buying a vehicle on loan.

Also, in case of lease transactions, the lessor takes the exposure on the residual value of the vehicle; this eventually brings down the lease rentals per month.

Vehicle Leasing: The Promising Future!

The concept of Vehicle leasing in India is here to stay! In the coming years, the vehicle leasing market in India will be prospering as most automobile brands have now started to expand their services to leasing now, which wasn’t quite prevalent until the last 4-5 years. With this competitive spirit, more and more well-developed brands are expected to undertake this strategy for enhancing their customer base. Also, currently, the statistics of a number of cars being sold is going through a falling spree, and it is expected to fall further. But the auto leasing market will flourish in the coming years. It provides the ‘Best of Both Worlds’ by providing benefits to not just the customers, but to the owner as well they still retain the ownership of the cars and gain benefits out of it.

With just over a month for the enactment of BS6 norms, Indian automakers seem edgy about the future purchases. So let’s dive deep into the upcoming BS6 emission norms and the significance of BS6 Compliance in India.

The Obligation of BS6 Emission Norms in India

The Supreme Court in its decree made it evident that sale of BS4 vehicles (cars, two-wheelers or commercial vehicles) will be stopped in India post the BS6 deadline on April 1, 2020. The apex court bench pronounced that only BS6 compliant vehicles shall be available for sale or purchase after April 1, 2020. The bench also stated the need of the hour to make a shift to a cleaner fuel use all across the country in accordance with the Paris Climate Agreement signed by India in 2016. It is now evident that the Indian government takes hold of the responsibility to lessen its carbon-footprint by 35-55% within the next 12 years from what was put down in 2005.

As a result, the government in collaboration with some oil companies has already initiated the roll out of BS6 compliant fuels in some parts of the country- like certain pumps in the Delhi/NCR region. Although the judgment did not fall in favor of the automobile industry, which is already sparing no effort to meet the BS6 deadline, this BS6 compliance move is undoubtedly great for the general public as cleaner and less polluting cars are the need of the hour.

BS6 Ready vs BS6 Compliant

Confused about BS6 ready and BS6 Compliant vehicles? Well, today keeping up healthy relations with our environment is really significant. And this is why automakers are working hard upon the powertrain to manufacture vehicles that are compliant to the BS6 emission standards.

BS6 Ready Engine?

There is a considerable difference between BS6 ready engine and BS6 compliant engine and comes with two explanations:

• Automobile companies possess the technology to manufacture an engine that runs on BS6 fuel and adheres to BS6 emission norms. They have not been manufactured or launched yet.
• The engine manufactured can run on BS6 fuel however the emissions do not follow the new norms. Almost all BS4 vehicles in India can run on BS6 fuel and the lubricating quality of new fuel is somewhat similar to the BS4 fuel.

 BS6 Compliant Engine?

The vehicles running in India with a BS6 compliant engine run on BS6 fuel and produce emissions as per the BS6 compliant emission norms. Very few cars in India are BS6 compliant and there is no BS6 compliant diesel engine vehicle as engine runs only on BS6 diesel fuel.

How BS6 Compliance will affect vehicle fleet owners and businesses?

With the new BS6 emissions regulations ringing in from April 1, 2020; state of the art technology will be required to keep emissions in check, especially the new diesel engine vehicles. Diesel cars will require a complete new technology in order to cut back on emissions and as a result, new add-ons are likely to bring an upswing in the prices of diesel cars and widen the gap between a new petrol car and a new diesel car by around 2.5 lakh rupees if premium hatchbacks and compact sedan are taken into consideration.

Diesel vehicles and economic class motorcycles will witness a sharp rise in price, and this might keep buyers away for some time. In addition to it, the resale value for BS4 diesel cars is likely to decrease in few years (2022-2024) or earlier in case the government passes some rule that impacts the validity of BS4 diesel cars in India. People would not bother driving around their BS4 diesel cars until and unless forced by law to shift to BS6 vehicles. However, it will be better to hold your horses till 2021 if none of the current cars satisfy your itch to upgrade. Well, all the hoopla around BS4 and BS6 is likely to settle down by that time and you will eventually have more clarity. With prices of BS6 diesel engines to witness an upswing, customers also have the choice to choose vehicle leasing services in India with or without maintenance, all depending on the requirement. Auto leasing in India can cater to start-up entrepreneurs, MSMEs and corporate professionals.

How Vehicle Leasing Solutions can be the most Viable Option?

Well, the benefits of leasing go far beyond the perks of BS6 compliant vehicles. With vehicle leasing solutions, you can easily drive around with relatively less monthly fees and mechanical maintenance charges. Corporate car leasing companies like SMAS India can prove to be the most viable option in today’s BS6 compliant auto market. With car prices likely to increase substantially, businesses will prefer to have a corporate lease vehicle for 2-3 years and will avail a wide variety of tax benefits for the business. Moreover, companies that lease vehicles are also aware of the fact that their cost of maintenance and repairs are already included under the lease.

Therefore, it can be concluded that vehicle fleet solutions in India are likely to bring a pragmatic shift amongst businesses and corporates from April 1, 2020.

The One-Off

Commercial vehicles sale have remained low in the last one year due to enhanced efficiency of trucks because of increase in freight carrying capacity and implementation of GST. But the reduction in freight from manufacturing sector has curtailed the income of fleet owners which further have also hit demand for such vehicles. And apart from lack of demand, lessening financing options available from the NBFC sector have also kept fleet owners from the market.

Transport is an indispensable facet of every active business, big or small. Vehicles, hence, are a utility that stand as a necessity. But, operating a fleet of vehicles also comes with costs- both fixed and variable. For new businesses, especially startups, cost is a crucial factor for growth and a fleet only adds to their burden. In this post, we will tell you about why vehicle ownership costs more to new businesses and what they can do about it.

 Let us get started!

 Why Vehicle Ownership Costs More to New Businesses?

 Startups and newly established businesses have their own transportation needs- right from moving employees to ferrying goods. However, the enterprises tied to a limited funding source or with a limited budget might face challenges if they decide to purchase a fleet of their own. The reasons are listed below.

Upfront Down Payment for Vehicles

 If a new business decides to purchase a fleet of its own, it will either pay for it entirely or get a business loan to finance the procurement. At this point, a business must keep in mind that they are making a ‘cash-heavy’ investment in a depreciating asset. Not only will this action rob them off precious funds (that can be used to hire additional workforce, make parallel investments, etc.), but also add a liability factor on them (if the vehicles have been financed by bank). The bottomline is, for new businesses, the decision to purchase a fleet is a pressure on their internal monetary resources.

Vehicles are Depreciating Assets

 If an enterprise owns a fleet, it can straightaway be marked-off as a depreciating asset. Vehicles, as soon as they move out of the showroom, lose their value and continue to do so unless sold. For a new business that is looking to minimize its liabilities and increase its profits, fleet ownership is usually advised against.

Additional Manpower & Staffing for Fleet Management

Every department, operation and process within a business demands skilled and adequate manpower. A fleet of vehicles is no different. In fact, it requires more skilled people in place that adds up to monthly overhead costs in terms of salary. In addition to this, infrastructural costs need to be factored in too. Covered parking space, accounting software for cost tracking, security measures, etc. can quickly shoot the monthly overhead costs for a new business.

Maintenance & Liability Concerns

Any vehicle, be it a truck, van, SUV, hatchback or a sedan, requires its fair share of maintenance and adequate care for reliable functioning. During a vehicle’s lifetime, a major chunk of the incurred costs is accounted by the monthly maintenance costs. This includes regular top-up service, major overhauls, accidental repairs and spare parts.

As far as liability is concerned, it is another factor that enterprises need to keep in mind. Road accidents, fines, etc. are to be borne by the owner of the vehicle (in this case it is the company). Any major mishap might also lead to a lawsuit which is another big problem for the company’s image and finances.

What can the Businesses do about simplifying their transport needs then?

The answer is very simple- Hire a vehicle leasing service!

Before you critically evaluate the solution, hear out the benefits of hiring a vehicle leasing company as mentioned-below;

Pay only for the usage and save big bucks!

With a reliable vehicle leasing company like SMAS India, businesses only pay for the usage of the vehicles. Be it ferrying employees to and fro or transporting bulk commercial goods via trucks, a company can meet all its transportation requirements at one place.

Thus, hiring a vehicle leasing service will save a company big bucks on vehicle purchase costs, staffing and manpower costs, monthly maintenance costs and more importantly from the potential liabilities.

Enhanced Employee Experience

 Vehicle leasing companies are not just a highly cost-effective solution for businesses, but also a pro-employee experience factor. Employees get their ferrying needs solved on time, with reliable service and benefit of punctuality. This is often perceived as a perk and employees tend to stay longer in companies with butter-smooth transportation.

For new businesses with strict budgets and tight investment control, a vehicle leasing company is the best option to sort out their transportation needs. If you are one of them, try out SMAS India’s services and see the inherent benefits of leasing vehicles yourself!