What does leasing a company car offer compared to buying one?

 

Even though the pandemic has been an unchanged condition we are all greatly concerned about our safety and health. The simple process of commuting has become a major threat to us. This is why we are constantly in search of options that give us the safety and convenience of going about our days without worries. The only solution to this problem of mobility is to have a car to yourself and avoid public transport as much as possible. But most people are still figuring out if they are ready for the commitment of owning a car. Because a car comes with many burdens in the form of maintenance and all other excessive expenses that owning a car invites.

Don't you wish there was an alternative way to use a car? Then it is certainly time for you to forget buying a car outright and instead focus on leasing a car. Read on to find out how car leasing ticks all the right boxes if you are searching for a cost-effective, hassle-free alternative for mobility.

Let us see how car leasing compares with buying:

No enormous down payments.

Data shows that six out of ten passenger car buyers buy it with the help of loans and finance. So, inevitably the thought of buying a car comes with the thought of setting aside a handsome amount of money for a down payment. On the other hand, leasing doesn't require the need to set aside a huge sum of money for the down payment, because you pay for what you use. You pay monthly rentals that can be fixed beforehand and can seal it with a formal contract.

Low monthly payments compared to Bank EMIs.

The first thought we wander towards while thinking of buying a car is bank loans and we can't blame ourselves because it could be a convenient option, but the truth is, the interest rates hurt. However, a car lease means you will be paying less compared to bank loan EMI. It is calculated on the full price of the car while the monthly lease payment is calculated only after reducing the projected sale value of the car. To put it simply, how much you drive dictates how much you pay as it can account for the residual value beforehand.

 

Don't have to worry about Insurance, Servicing and Maintenance.

Buying a car comes with several things that you need to spend time on and take care of. Such as, managing insurance payments, claims, settlements, servicing, maintenance etc. But with car leasing, you're transferring most of these responsibilities to your leasing partner and they will take care of them.

Your monthly rental amount includes the insurance amount, so you don't have to worry about it at all. Companies like ALD Automotive provide the option to opt for additional benefits like- 24x7 Roadside Assistance, relief car, door to door service etc. They take care of your car's servicing and maintenance needs as well. You will not be stuck in any situation which will result in you paying for unexpected maintenance. Car leasing will reduce your responsibilities and let you enjoy the benefits of a car without having to go through the disadvantages.

 

Benefit from Tax Deductions

One of the most important benefits of leasing a car is the significant tax deduction. Because your monthly lease amount is reduced from your pre-tax salary, which means the taxable income is lower and it helps you save a chunk on taxes. With other finance options such as a bank loan, the story is way different.

For example, let's take an employee who pays 20k per month towards car lease rental. This amount includes their car's maintenance, insurance, service and roadside assistance and the entire lease rental amount is deducted from their pre-tax income. They are only liable to pay taxes for the rest of their income and hence saves on tax every month with multiple mobility benefits.

Leased car Upgrades and Resale

If you're someone who is into cars you know how the automobile industry produces significantly better vehicles within a couple of years. You buy a car now and a couple of years later you find a better car that suits you best. If you are trying to upgrade to it, then it is the same tiring process you went through a couple of years back paying the down payment, taxes etc. And the resale value of the current vehicle is another headache no one wants to go through.

But with car leasing, you can easily upgrade your vehicle when your lease period ends and a normal lease period is from 3 to 5 years. You can experience and enjoy newer tech and comfort without having to sell your current vehicle and going through the tiring process of buying.

 

No need to leave your car behind while switching jobs!

There is a common misconception that if you decide to leave a company midterm the company car lease contract must be terminated and the car will not be with you. However, ALD Ugo is a lease contract by ALD Automotive that solves this issue for you. It is a tripartite leasing option that will be between you, your employer and your leasing partner ALD Automotive. When you decide to switch jobs, the lease contract is getting transferred to your next company, it is not getting terminated. You also get the opportunity to continue the contract individually/ personally as well. So, with ALD Ugo your journey with your car continues to the next workplace.

Simply put, if you want to relish the benefits of using a car and other additional benefits in a very pocket-friendly way, car leasing is the best option for you. And if you want to get the most out of car leasing, then ALD Automotive is the way to go.

To get a clear idea of car leasing, check out this short video by ALD Automotive.