Car leasing in recent times

Car leasing in recent times - A growth story

Historically, users have preferred buying over leasing. It's a matter of pride for users to claim ownership of their home or their car which amount to large purchases in his lifetime. But the Indian millennial thinks otherwise. Thanks to many startup enterprises, you can rent or lease almost anything. This has also paved way to car leasing which this generation has accepted wholeheartedly. The trend is catching up real quick. This trend started with corporate leasing for multinational companies and their senior management, primarily cached by the luxury car manufacturers. It has now trickled down through hierarchies in many Indian and Multinational corporates in India, and the concept is also introduced in the retail market by all leading manufacturers like Maruti Suzuki, Mahindra & Mahindra, Hyundai India, Tata Motors, to name a few.

Offering a leasing option is essentially a way of financing, making leasing companies a cusp between 2 Industries. It's not surprising that, many car leasing companies in India are seen as financers just like banks offering car loans. But there is a significant difference. When you avail a car loan to buy a vehicle, a part of your monthly payment goes in paying off that vehicle (which is the principal amount) while another portion pays the finance charge (which is the interest). But in the case of leasing a vehicle, you are only paying for the use of the vehicle for a specific contract term and the finance charge. This means you never actually pay off any principal.

Car leasing is a type of financing where you only pay for the use of a vehicle and not its whole retail value. The lease rental also accounts for depreciation cost, any excessive mileage, and any excessive wear and tear that is caused during your lease. Another benefit of car leasing companies in Mumbai is that you can return the car, or renew your lease, or upgrade to a better vehicle at the end of the contract. You also have the option to buy the car after the end of the lease. If you are looking to buy, think again about leasing. With the growing popularity of leasing in recent times, you have an array of choices.

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