The vehicles are leased to you for a predetermined tenure and kilometre limit along with vehicle management services for agreed rent ensuring you hassle free mobility.
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% down payment is required. Therefore, a corporate can use this margin money for its core activity and earn additional ROI.
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.
Company doesn’t have to capitalize the asset(s) in their books and this helps a company in budgeting, keeping their leverage ratio low.
No Need to keep separate resources for maintenance of cars. The leasing company will take care of it.
Insurance and road taxes can be paid through monthly Rental Spread rather than cash outflow at one go. This will increase the liquidity of the company & it can help you meet other expenses.
No hassle to dispose off the vehicles at end of the lease tenure. Leasing company will pick up the vehicles at the end of lease tenure and the risk of resale of the cars will lie with them.
Vehicle leasing gives the company an opportunity to address key elements like Recruiting, Retaining and Motivating your employees in this very competitive human resource market. It’s like investing in your employees and their peace of mind.
Full funding of the car value is available with SMAS India and the employees are not required to make any down payment to opt for the car under company car lease policy
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.
Since the maintenance (with tyres & batteries) are part of the per month EMI payable, the employee enjoys tax saving on each rupee paid by SMAS India for maintenance of the car.
Employees will have an option to pick and choose from the list of value-added services. Moreover, the employee saves tax on each value-added service cost.
The employees are not required to make any payment towards the insurance of the car as this will be done by lessor and employees will be able to save tax on the amount payable against the insurance premium. Employees will also be protected from malice loading by the insurance company as the premium for the insurance will be fixed and a part of the monthly rental.
All the eligible employees are free to enrol their existing cars in the car leasing scheme in a hassle-free way and they can start availing tax benefits subject to terms and conditions of Sale & Lease Back Policy.
Opting for a car on lease is a hassle-free transaction for the employee as compared to going for a car on loan because there is no paperwork required from the employee.
SMAS India does not only fund the car value to the employees but even provides the fleet consultancy to every employee on individual basis through group and personal sessions at the office premises.