A Lease is a right to use an asset for an agreed period of time on payment of rentals. It involves 2 parties, a lessor and a lessee. Lessor is the owner of the asset and lessee is the user of the asset.

No Down payment - 100% Finance. Rent covers Finance, Insurance, Maintenance, Accident Repairs & Admin Benefits. Provides an option to upgrade, without hampering budgets. Risk is fully covered. With the influx of new models, cars can be changed faster and without hassle. Pay for usage model. Target customers: Corporates, Self-employed professional, Sole-proprietors, Partnership firms, Private limited & limited firms. The RV is estimated upfront and its benefit is passed on in the lease rentals. Hence, any drop in the market price of the asset, does not affect the lease rentals.

The rental calculation involves the amount funded less the sale price expected at the end and includes interest cost and all other cost which is required to run a vehicle like insurance, maintenance, admin cost except fuel and driver charges. The lease rentals is worked out for a particular period and usage.

Insurance: Insurance Management will done by the Lessor for the entire lease tenure. This will include the repair works and speedy settlement of claims. The Lessee will need to comply with the Insurance Procedures including filing of FIR in case of Theft or 3rd party damage for settlement of claims. These would include procedures like – giving details of the accident, filing of the claim forms, providing documents like driving license, etc. Lessor will also bear the disallowed insurance if the same is covered in the contract. Maintenance & Administration: Pick-up & drop facility will be provided for servicing of vehicles within the Municipal limits of the city. 24x7 breakdown assistance will be provided within the Municipal limits of the city. A replacement vehicle will be provided, if the vehicle is off the road for mechanical repairs beyond 24 hours. Fleet management rates include 1 set of tyre and battery. Accident repairs & claim process.

Beside a lower EMI outflow the other major benefits of Operating Lease are:- Do not pay for the complete cost of the car as compared to any means of acquiring cars. NO down payment, the valuable capital can be invested in alternative appreciating asset. Companies have a limited borrowing capacity, they do not want their borrowing capacity to be locked in depreciating assets like automobiles, hence Leasing is an excellent way of an off balance sheet financing for companies. All EMI’s under leasing arrangement are booked under expense, making the book lighter. No Risk on Resale Value, protection from fluctuation in the used car market at the end of tenure. Reduction in Financial Risk. Avoid surprises related to maintenance and Insurance disallowances. Comprehensive coverage can be included which covers all maintenance, all accident repairs, tyre and battery changes and breakdown assistance

a) Tax Saving: the rentals can be shown as an expense and tax benefit can be availed b) Convenience: as the product offered is inclusive of all services i.e insurance, maintenance, Insurance disallowance, replacement car, pick up and drop service, road side assistance. Their profession demands them to be mobile; as time is of prime importance. full service lease will ensure mobility and hassle free drive. c) Upgrade: Rentals are lower in operating lease compared to loan thus the user can drive the same variant at lower rental or upgrade to higher variant with the same outflow.

At the end of the lease tenure, the vehicle comes back to the leasing vendor, i.e. the Lessor. At the end of the lease tenure, the vehicle can be purchased at the then prevailing market price.

There would be a pre-termination charge that would be applicable. Outstanding book value + penalty on o/s book value + taxes applicable + outstanding rentals (if any till the termination date) – market value of the vehicle.