Rising growth of car leasing in today’s times

Posted by rajaram patil on September 23rd, 2019

Previously, the mindset of majority of consumers was inclined more towards purchasing as compared to renting. Especially when it comes to big investments such as a car, the purchase is accompanied by immense pride and fanfare. However, the millennial generation in India exhibits a marked preference towards renting or leasing, while the idea of purchase has relatively faded. It is quite evident that the concept of leasing is here to stay in the long run- thanks to the rising number of start-ups that help you rent almost everything you can think of. Needless to say, this trend is fast catching up even as far as the automobile sector as concerned. The onset of this trend was marked by corporate leasing for senior executives in multinational companies, which was practiced by luxury carmakers. Eventually, it has become a regular practice in corporate India, and the concept has now taken the form of retail, thanks to companies like Mahindra and Mahindra who are offering some of their models on lease to customers directly.

A leasing company can also be viewed as a finance company, since they basically do the same thing. In fact, many car leasing companies in India simply play the role of banks that deal in car financing and leasing. When you avail a car loan to buy a vehicle, a part of your monthly payment goes in paying off that vehicle while another portion pays the finance charge. So, in the case of leasing a vehicle, you are paying for the use of the vehicle and the finance charge, but you never pay off any principal.

Unlike a traditional car loan, leasing is a type of financing wherein you have to pay for the use of a vehicle instead of its purchase. The use of a vehicle includes its depreciation cost, any excessive mileage, and any excessive wear and tear that is caused during your lease. A major advantage of car leasing companies in Mumbai is that you simply return the car to the leasing company and walk away to the end of your term, while they will have to deal with the hassle of selling the vehicle. Are you looking to lease a car, or perhaps buy one? Well, in all likelihood, you have come across some of the best car leasing companies. With the growing popularity of leasing in recent times, car leasing companies have also cropped up significantly, with a lot of options to choose from.