MyLoanCare is a FREE of cost service for borrowers Apply Online

MyLoanCare - Baat Aapke Interest Ki

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

Car Lease

Car Lease India

Last Updated 24th Jun 2021

  • Car Leasing is a process under which an individual uses a car for some predetermined time in exchange for rental payments.
  • Car lease allows Individuals to fulfil the desire to drive an expensive car which usually they cannot afford due to staggering prices.
  • Car lease takes away the stress of downpayment and maintenance.
  • The amount paid for a car lease is eligible for a tax deduction.
  • Individuals must provide identity proof, address proof, income proof, bank statements and driving license to lease a car.
  • Get a car loan at 8.70%.
  • The car lease term may vary from two years to five years.
Apply for Car Loan @ 8.70%*

Car Leasing

Car Leasing refers to a process under which an individual uses a car for some predetermined time exchange for rental payments. The car leasing allows individuals to use the car without paying the hefty amount in purchasing the car. Once the period for which the car lease agreement was signed elapsed, the lessee (the person who took the car for rentals) is required to return the car to the lessor (the owner of the car).

Features And Benefits Of Leasing a Car

Features and Benefits of Leasing a Car are as follow:

  • Individuals can fulfill the desire to drive an expensive car which usually they cannot afford due to staggering prices. Even in case of purchasing the car on credit, car leasing makes more financial sense. As Billionaire oil tycoon J Paul Getty said: "If it appreciates, buy it. If it depreciates, lease it."
  • Unlike in the case of purchasing a car and taking a loan for a car, an individual is not required to pay the downpayment in case of car leasing.
  • Car lease takes away the stress of car maintenance. Usually, the car is covered by the lessor's insurance. In addition to this, in some cases, the lessor provides maintenance for the initial few years.
  • The lease term may vary from two years to five years, depending on the type of leasing agreement.
  • The amount paid for a car lease is eligible for a tax deduction. Thus, individuals can save money on taxes.
  • Car lease works on pay for usage model, under this lessee pay only for the period during which he uses the car. Once the usage period is over, he can surrender the vehicle to the owner and stop paying instalments.

Document Required to Lease a Car in India

The documents required for a car lease in India are as follow:

TypeDocument
Identity proof
  • Pan Card
  • Aadhaar Card
  • Passport
  • Voter ID card
Proof of residence
  • Passport
  • Aadhaar Card
  • Voter ID card
  • Ration card
  • Utility bills. Eg. electricity bill or water bill
Proof of Income
  • A copy of Income Tax Return
  • Bank statement of last 6 months
  • Salary Slip, and a copy of Form 16.
  • Net Worth certificate.
Proof of a corresponding bank account
  • A Cancelled Cheque of the bank that you wish to link with your trading account.
  • Bank passbook of the respective bank along with the IFSC Code.
Additional documents
  • Monthly income and expenditure proof.
  • Driving License.

Car Leasing Process

  • Research about the Car leasing firms and select the credible dealer for leasing a car.
  • Select a car which suits your requirement. The selection must be based on price, mileage, affordability, car safety features, rating, etc.
  • Visit the dealer and check all the terms and conditions related to car leasing. In addition to this, select the tenure for the car lease.
  • Provide all the relevant documents to the Car leasing firm.
  • The firm will check the credit score and all the relevant documents.
  • On successful completion of the process, the firm will finalise the agreement, and you can take the car on a lease.

Car Lease vs Car Rental

Basis of Distinctions Car LeaseCar Rental
Suitable Longer tenureShorter Tenure
FeasibilityLeasing is generally less expensive Car rental is costly in comparison to car lease for the same period.
Tax BenefitsTax benefits can be availed on a Car leaseNo tax benefit on car rental
Possibility of OwnershipPossibility of ownership at the end of the tenure Car rentals do not offer ownership option to the customers

Things To Know Before You Lease A Car

  • Individual must evaluate his income and expenses and check whether he will be able to pay the periodic lease amount.
  • Customers must do thorough research about the Car leasing firm. They must opt for a credible car dealer.
  • Credit reports help one to secure good deals on a car lease. Individuals must check their credit score and avail benefit if any.
  • Check the tax benefits available on a car lease.
  • Compare whether the car lease is a cheaper option or car loan for your case.

Car Leasing Companies in India

Some of the top car lease companies in India are as follow:

  • Avis Lease
  • ALD Automotive
  • Lease Plan
  • ORIX India
  • SMAS Auto Leasing

FAQs

Can you lease a car in India?

Yes, individuals can lease a car in India at affordable prices.

Is car leasing a good option in India?

Yes, car leasing is a good option in India. It offers benefits like :

  • Customers can fulfil the desire to drive an expensive car via car lease, which usually they cannot afford due to staggering prices.
  • Unlike in the case of purchasing a car and taking a loan for a car, an individual is not required to pay the downpayment in case of car leasing.
  • Car lease takes away the stress of car maintenance.
  • The amount paid for a car lease is eligible for a tax deduction. Thus, individuals can save money on taxes.

Can I end my lease tenure early?

Ending the car lease tenure early depends upon the terms and conditions of the car lease agreement. It may attract penalties.

Can I lease a car for just six months?

Mostly, the car lease is available for more than 24 months. However, customers may still find a few car lease option for just six months.


Notification ×
  • Home Loan

    Home Loan at all-time low rates starting at 6.65%. Cashback of up to ₹ 1,000.

    Apply Now
  • Personal Loan

    Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000 .

    Check Offers
  • Gold Loan

    Instant Gold Loan starting at 9.50% with Cashback of up to ₹ 500

    Apply Now
  • Loan Against Property

    Best Loan Against Property Offers starting @ 7.20%. Cashback of up to ₹ 1,000*.

    Apply Now
  • Business Loan

    Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

    Apply Now
  • Fixed Deposit

    AAA rated FDs with returns as high as 6.95%.

    Invest Now
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
Loader
Please wait while your information is being processed...