Month: October 2019

According to Vehicle Leasing Industry Research Report, the market of Vehicle Leasing Industry is expected to grow at a significant CAGR during the period 2019 to 2024. This report is undoubtedly an indication towards the increase in the number of Vehicle Leasing.

There are several factors responsible for the emerging preference for auto lease from reputed car leasing companies. For instance, Business car leasing helps you to save a considerable amount of money, which could otherwise be spent on other important organizational purposes such as employee management. Further, leasing includes merits like no down payment on the car, a fixed rental inclusive of the maintenance cost, car insurance cost, and no hassle of reselling vehicle in the market etc.

Here mentioned are few crucial benefits of Car Leasing for corporates and employees:-

 

FOR CORPORATES

Save big bucks on taxes!

The amount you pay for a vehicle lease is eligible for tax relief. Leasing a car could help you save as much as 25% on your taxes. Such tax benefit is applicable for self-employed as well as salaried professionals. When you lease a car, you must check out the tax benefits available for you in leasing a vehicle.

No Down Payment

Businesses can avoid the hefty upfront payments required for procuring a car or a vehicle via a vehicle leasing policy as compared to a loan where 10-15% down payment is required. Therefore, a corporate can use this margin money for its core activity and earn additional ROI.

 Zero Maintenance Fees

If you are a business owner, it would be better to lease a vehicle at a time that concurs with the warranty period covered by the car’s manufacturer. This would ensure that if something goes wrong with the car, the manufacturer is responsible for all the repair costs. Various vehicle leasing companies in India provides a fully maintained operating lease, thus saving you on the business costs.

 Higher Liquid Funds

Your business can also pay the extra costs like Insurance and several other taxes through a monthly Rental Spread rather than the direct cash outflow at one go. It will not only increase the liquidity of the company but can also help the company meet other expenses.

Access to latest vehicle models at a heavy discount rate

Due to the availability of several corporate car leasing companies, it’s a buyers’ market. You need to make sure you shop around to get the best deals on the latest models. You may also use the expertise of fleet leasing supplier to find the best deals for you.

 

FOR EMPLOYEES

Employee Vehicle Enrollment

Employees can easily enroll their cars in the car leasing scheme to avail tax benefits, according to the terms and conditions of an automobile leasing company in India. This serves as an additional perk to the employees and they often rate the company higher on Employee Experience (EX).

Vehicle Insurance Scheme Benefit

A trustworthy vehicle fleet solutions India provides the employees with the right insurance policy on the leased car. This insurance is directly incorporated in the monthly lease rentals and the employer & employee enjoy liability-free usage of the vehicle.

Pay for Usage only

Due to corporate leasing, employees are not required to pay for the entire value of the car. They pay on the basis of vehicle’s usage only and save on any other cost typically associated with owning one!

Closing note

From the above-mentioned benefits, it can be deduced that leasing vehicle is the best thing that a business should venture into instead of owning a fleet.

To lease vehicles seamlessly, businesses can seek the support of SMAS India, a globally preferred brand for acquiring an automobile on lease. It serves as an end to end vehicle leasing and fleet consultancy service provider. SMAS India also facilitates a range of Vehicle management services suitable as per your requirements.

 

 

Write to us at reach_us@smasindia.com to discover more about SMAS India vehicle leasing solutions!

Whether you wish to ferry your employees to office every day, transport staff to different sites or haul cargo via road, a reliable vehicle leasing partner can make it seamless. As the economy flourishes, businesses are registering a rising need for on-demand vehicle fleet that can fulfill their transportation needs on time. However, commercial vehicles that move passengers and goods can cost a bomb to any company. To escape this huge cost investment and still get their transportation needs met, businesses are heavily relying on Vehicle Leasing Partners.

Why do companies lease vehicles?

Simple! Leasing vehicles or a fleet gives unparalleled benefits to the company. And, this is not just in terms of cost, but overall business operations. It must be understood that any vehicle is a depreciating asset. It not only incurs heavy purchase costs, but also regular maintenance costs and administrative manpower that can be tedious for many companies to supervise. Thus, when a company leases passenger and/or goods transport vehicles, it enjoys the following benefits;

Cost Benefits

• No high-cost of ownership of vehicles
• No additional manpower required to man & supervise vehicle operations
• Tax benefits to the companies on leased vehicles

Employee Benefits

• Enhanced employee experience through transportation
• Improved retention rate as the employees see company transportation as an added perk
• Timely transportation
• Better attendance and on-time record of the workforce

In fact Vehicle Leasing Companies like SMAS India offer the following additional benefits to the companies;

• Easy monthly rental payment options
• Managed servicing and maintenance of vehicles
• Quality vehicle models with premium features
• 24×7 Customer Support & Hassle-free mobility

Now, the question arises- How to select a reliable corporate vehicle leasing company in India?

A company should consider the following pointers and tips before hiring a vehicle leasing partner;

Size & Quality of the Fleet

A reliable vehicle leasing partner usually has access to all the latest car & commercial vehicle models through its unique partnerships with manufacturers, which makes it easier for the leasing companies to provide its partners with an updated fleet of vehicles and services.

Further, eliminating the hassle of buying and managing the inventory for its client at reasonable monthly payments.

 Array of Services

While a niche vehicle lease partner can be an exemplar transport partner for a company (like a simple car leasing company), those providing multiple services under a single roof are often more experienced in this domain. For e.g. SMAS India provides end-to-end fleet funding for cars, commercial vehicles for FMCG, logistics, manufacturers, etc. and other fleet management services. The more the services, the better is the vendor’s competence and one-stop solution under a single roof for your mobility needs.

Dedicated Customer Support

This is one of the most crucial aspects that a company must look out for before partnering with any vehicle leasing company. Dedicated customer support is essential to keep the operations smooth. In case any issue arises at any stage of the leasing service, a dedicated customer support will be quick to resolve it. For instance, SMAS India has a dedicated call center to resolve any client-issue at the earliest. Dedicated Customer Support is also the indicator of the leasing partner’s focus on great client experience.

Technology Friendly

Honestly, if you wish to partner with a reliable vehicle leasing partner, ensure that they are tech-friendly. Do they have an app where their clients can access all the crucial service related information on the go? Do they monitor their vehicles in real-time for maximum safety & security? Do they have any system to suggest optimum vehicle usage to their clients? The more the ‘yeses’ for these questions, the better is the quality of the prospect partner.

Got questions? We will be happy to answer them. Contact Us to get in touch with a SMAS professional!