Rajiv Posted August 17, 2011 Posted August 17, 2011 Is it big business now? this concept wasn't there around 10 years ago although one of my buddies in Mumbai has almost made an empire out of this Every 2nd week, I see FB pics with friends etc putting a garland on a BMW or Mercedes. Whats the price like, and do they just need PAN #?
Rajiv Posted August 17, 2011 Author Posted August 17, 2011 yes it is. ..thats a really long explanation, it will take a while b4 I could finish reading it :fishing:
Guest Gunner Posted August 17, 2011 Posted August 17, 2011 Is it big business now? this concept wasn't there around 10 years ago although one of my buddies in Mumbai has almost made an empire out of this Every 2nd week, I see FB pics with friends etc putting a garland on a BMW or Mercedes. Whats the price like, and do they just need PAN #? Rajiv, what do you mean by car leasing? Do you mean a company like Hertz or Avis or leasing your car to a company like that?
Rajiv Posted August 17, 2011 Author Posted August 17, 2011 They have Car leasing in UK right?? http://trak.in/tags/business/2011/07/20/mercedes-car-leasing-india/ Mercedes brings Car Leasing concept to India Ë´hould you go for it? n western countries, Car Leasing is very popular Infact, half of all people who do not pay upfront, lease their cars instead of opting for full financing. I have personally leased a car for a period of 2 years, so I do have certain knowledge of it. What is Car Leasing? Let me first explain the concept of Leasing the car Simply put, if a consumer wants to lease a car, he has to pay only a certain percentage of the car price (generally about 50%). You have freedom to then use the car for a period of 3 years (sometimes it is more, depends on lease) after which you have return the car and you owe or own nothing. Thats where car lease ends. What is attractive here is All the car maintenance and the car insurance costs are borne by the company itself. Car Leasing becomes even more attractive to consumers when this car lease cost is allowed to be paid in monthly installments during the lease tenure. What this does is relatively negligible upfront costs to the person taking the lease. Here is an example Lets say the car costs 30 Lakhs and the car valuation after 3 years is expected to be 16 Lakh, then consumer will lease the car for 14 Lakh. Now, this 14 lakh is to be paid over 3 years, so the person leasing the car will have to pay close to 39,000 rupees every month for next 3 years. Other than initial costs / security deposit, buyer does not have to pay anything other than monthly installments!
Holysmoke Posted August 17, 2011 Posted August 17, 2011 Renting cars is very common.. Esp hotels and corporates... Long term leases(3-5 year) are very rare
punjabi_khota Posted August 17, 2011 Posted August 17, 2011 Most car commercials in US advertize car leases. Basically for say a 30K car, you pay like 2K upfront, and then around 400 per month for 3 years that you keep the car. Then you return it and do a new deal like that.
Guest Gunner Posted August 17, 2011 Posted August 17, 2011 They have Car leasing in UK right?? http://trak.in/tags/business/2011/07/20/mercedes-car-leasing-india/ Mercedes brings Car Leasing concept to India ?hould you go for it? n western countries, Car Leasing is very popular Infact, half of all people who do not pay upfront, lease their cars instead of opting for full financing. I have personally leased a car for a period of 2 years, so I do have certain knowledge of it. What is Car Leasing? Let me first explain the concept of Leasing the car Simply put, if a consumer wants to lease a car, he has to pay only a certain percentage of the car price (generally about 50%). You have freedom to then use the car for a period of 3 years (sometimes it is more, depends on lease) after which you have return the car and you owe or own nothing. Thats where car lease ends. What is attractive here is All the car maintenance and the car insurance costs are borne by the company itself. Car Leasing becomes even more attractive to consumers when this car lease cost is allowed to be paid in monthly installments during the lease tenure. What this does is relatively negligible upfront costs to the person taking the lease. Here is an example Lets say the car costs 30 Lakhs and the car valuation after 3 years is expected to be 16 Lakh, then consumer will lease the car for 14 Lakh. Now, this 14 lakh is to be paid over 3 years, so the person leasing the car will have to pay close to 39,000 rupees every month for next 3 years. Other than initial costs / security deposit, buyer does not have to pay anything other than monthly installments! People don't do operating leases in India just financial leases. Which means that the car becomes yours at the end. So it ain't like EU and NA from what I understand here.
Rajiv Posted August 17, 2011 Author Posted August 17, 2011 People don't do operating leases in India just financial leases. Which means that the car becomes yours at the end. So it ain't like EU and NA from what I understand here. ..not according to the article, unless I got it wrong
Rajiv Posted August 17, 2011 Author Posted August 17, 2011 Most car commercials in US advertize car leases. Basically for say a 30K car' date=' you pay like 2K upfront, and then around 400 per month for 3 years that you keep the car. Then you return it and do a new deal like that.[/quote'] Whats better? lease or own..isnt lease better so u enjoy new cars
yoda Posted August 17, 2011 Posted August 17, 2011 Car leases are good for small business owners, especially in NA as you can lease it in the name of the company, write it off as an expense and be done with it. If you bought it, you have to manage it as a depreciating asset.
Guest Gunner Posted August 17, 2011 Posted August 17, 2011 ..not according to the article' date=' unless I got it wrong[/quote'] It maybe an idea starting off now but from what I have seen here (friends, relatives) no one seems to have taken on to it big time. Perhaps other people have a different picture since I don't live here.
jusarrived Posted August 17, 2011 Posted August 17, 2011 its only the corprates & hotels who opt for it ..not very popular otheriwse .
Yoda-esque Posted August 17, 2011 Posted August 17, 2011 I don't think it's popular here. ^ Naya Photo :two_thumbs_up:
triam Posted August 18, 2011 Posted August 18, 2011 Car leases are good for small business owners' date=' especially in NA as you can lease it in the name of the company, write it off as an expense and be done with it. If you bought it, you have to manage it as a depreciating asset.[/quote'] Exactly, most people (in the usa) who lease cars have atleast a name sake company of their own so they can write it off for tax purposes.
gult Posted August 18, 2011 Posted August 18, 2011 Team bhp forum has good info about car leasing. check it out
Recommended Posts