How to Select a Reliable Vehicle Leasing Partner in India?
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.
