The life of most cars is usually 10-15 years. Furthermore, after purchasing a car, its price starts to depreciate rapidly. With evolving technology, everyone wants to stay updated. So, if you need new features in your car, you will have to buy a new car as well. Is there a solution through which you can get a new car and change it whenever you want? Yes, there is a solution, and it’s called car leasing.
You will be surprised to know that besides buying a car, you can also take it on lease. If you haven’t heard about car leasing, our report will help you understand it.
There are several online platforms such as OLX, Quikr Cars, Avis Lease, OLA Car Lease, Uber Car Lease, and REVV that can assist you in leasing a car.
India has always been an ownership market, where people either buy cars by paying the full amount or by taking loans. However, nowadays, many people are opting for non-ownership options. Car leasing is one of them. Car leasing is similar to renting, where you get the right to use the car.
When buying a car, you have to make a substantial down payment upfront and repay the loan. Along with the EMI, you also bear the cost of car maintenance. In contrast, with car leasing, you can get a car by paying monthly installments equal to or even lower than the loan’s EMI. Monthly payments for the car lease are fixed. Not only that, maintenance cost, including car repairs and accessory replacements, are also included in it.
When your car becomes old, you resell it and then buy a new car. Similarly, in the case of car leasing, you can get a new car after a few years. Besides, without paying the full price, you can also drive expensive and premium cars.
The cost of leasing depends on factors such as the car’s model, tenure, and mileage. You can lease a car for a minimum of two to four years and a maximum of five years. Some companies also offer car leasing for as short as one to three years.
However, car leasing comes with mileage restrictions. It means you can only drive the car up to a certain limit per year. Additionally, to lease a car, you need to pay a security deposit. This security deposit can range from ₹20,000 to ₹30,000. The exact amount of the security deposit mostly depends on the car being leased. Apart from that, there is also a one-time non-refundable charge that needs to be paid, which can range from ₹4,000 to ₹5,000. This amount also varies based on the car’s model.
What’s better: To buy a car or get it on lease?
If you want to lease a car for a longer period, such as 8 to 10 years, and you believe in having your own asset, then buying a car would be the right choice. However, if you don’t want to own a car as an asset, prefer changing cars frequently, or if your job requires frequent transfers to new locations, then leasing a car would be a better option.
