The announcement of budget 2021 was not the best of both worlds to many of us. Especially to automobile owners, the vehicle scrappage policy might be quite bothersome. Although the scheme works brilliantly in scrapping and bringing old vehicles off the roads, in retrospect, it does affect one and all of us in some way. We need to re-evaluate decisions and factor in all players including our funds, hefty fines and fitness charges for our beloved vehicles.
In a nutshell, it means that car ownership has become costlier by many folds. For one, you don’t get the same value on your car because you can ideally drive your car for just 8 years after which you will need to pay at least 25% of equity only to get a fitness certificate for your vehicle. If for any reason your car fails the fitness test, it would be scrapped immediately. However, if your car passes the test, you will need to shell out a hefty amount to purchase a ‘green certificate’ in order to drive your vehicle on the road. So far, it sounds like owning a vehicle is going be costlier than a marriage. JK.
On a serious note, pondering upon several questions like “Should I buy a car right now?”, “Should I sell my car right now?” are more rational now than ever. So, what about them?
According to us, leasing is the best option one can think about while even thinking about cars in the slightest bit. Ownership without having the hassle of involving multiple payees right from the dealership, road tax, insurance, running costs, maintenance, re-registration and re-re-registration can only sound like the best of both worlds.
Fortunately, leasing works out for you. For all kinds of buyers, including first timers or those who like to change their cars every now and then, you can have an all-inclusive subscription policy that takes care of everything that you need. Since you do not own the car, you wouldn’t have to bother about registration or ‘green tax’.
|
Payments |
Loan |
Lease |
|
On-road price (state registration) |
16.35 lakh |
– |
|
Monthly payments (EMI) |
41,071 |
29,000 |
|
Interest |
3.36 lakh |
– |
|
Insurance value (annual) |
72, 500 |
72, 500 |
|
Ownership with insurance |
20.46 lakh |
16.82 lakh |
|
Maintenance costs |
~ 1 lakh |
– |
|
Total ownership costs |
21.46 lakh |
16.82 lakh |
If we can consider a loan period of about 4 years, these would be approximate values for your trade. Now calculate the same values over another period of 4 years after which any car will need to re-evaluated for road worthiness. Seems like leasing a good option? Yes!
A lease means that you are only paying for the luxury of driving a car without actually ‘owning’ the car by any means. Your lease agreement would usually be an all-inclusive plan that is equipped to handle any emergency, road-side assistance, accident coverage throughout the tenure of your lease. You can also exchange your car for a newer model at the end of your lease period allowing you to easily swap vehicles at the flick of your fingers.
Stringent taxation and fitness norms will certainly see a decline in the sales of cars since one needs to factor in resale cost, parts, fitness tests and the depreciation that comes with it.
Look for leasing options when you think about purchasing your new car. We guarantee that you won’t regret it.
To know more about why leasing is better than purchasing a car, visit: https://leasemycars.in/2021/01/leasing-vs-buying-a-car/
- For the best lessee in town, contact us on 91 -988 667 7386 or drop in an email at contact@leasemycars.in to get the best deal on your lease plan.