[TusharK]

Hyundai has announced a collaboration with ALD Automotive - an automotive leasing and fleet management company to offer car leasing options in India.



Hyundai Leasing is aimed at salaried individuals, working professionals, small and medium businesses, corporates and the public sector. In the first phase, leasing options will be available in Delhi NCR, Mumbai, Chennai, Hyderabad and Bangalore.

Customers in the aforementioned cities will be able to lease any model from Hyundai's product line up at a monthly lease rental. Cars can be leased for 2-5 years depending on the city and model. According to Hyundai, the benefits of leasing include no upfront cost or financial risk, tax saving, upgradation and no maintenance and insurance costs.

Link to Team-BHP News

[SnS_12]

Read this interesting article on Moneycontrol. The Creta at 17k monthly rent for 5 years looks lucrative.

Leading vehicle manufacturers in India, including Hyundai, Skoda and Mahindra & Mahindra have begun offering vehicles on rent with minimal or no down payment, as per an Economic Times report.

South Korean giant Hyundai has put its entire portfolio on lease for individuals or companies. For example, the basic SUV Creta on a monthly rent of Rs 17,642 (GST included), with no down payment, for a period of five years. The personal lease also includes maintenance services and upgrades of choice.

For comparison, buying the car would mean easy monthly instalments (EMI) of Rs 18,901 for five years, plus a down payment of Rs 2.73 lakh. Vikas Jain, National Sales Head at Hyundai Motor India (HMIL) told the paper, “The leasing schemes have in mind the cost efficacy of the product and are very lucrative for customers who change cars every three-four years.”

Mahindra & Mahindra too has put its SUV portfolio on lease with lower or no down payment. The cost is inclusive of maintenance, Veejay Ram Nakra, Chief of Sales and Marketing at Mahindra & Mahindra’s automotive division told the paper, adding, “Leasing is gaining increasing acceptance in the market and offers greater convenience compared to actually owning a car.”

Source:
https://www.moneycontrol.com/news/bu...s-4089361.html

[vinit.merchant]

Its all an article. Moneycontrol picked it from Economic time, and even that article is not providing any links to check further. But when I checked Hyundai site for leasing options and clicked on it, it took me to revv's site, where Creta lease starts from 25k a month (leased upto 4 years), that too a petrol one.

So it still not as cheap as it is made out to be from the article.
If it was, these schemes would be advertised from the top of the mountain by the manufacturers (the current market is in such a shape)

[FrozeninTime]

Can anyone explain how does leasing car in West differ from leasing in India?
I mean any specific rules laid out by Government which makes leasing costly or illegal.

[Jeroen]

Originally Posted by FrozeninTime

Can anyone explain how does leasing car in West differ from leasing in India?

I mean any specific rules laid out by Government which makes leasing costly or illegal.

Leasing cars has been going on for decades in the west. Initially, leasing was primarily aimed at the company car markets.

The last couple of years it is gaining more and more popularity for private owners as well. Most people would say convenience and knowing your total cost of ownership are important factors.

There is no government involvement on car leasing. Other than they need to comply with the usual rules and regulations for their sector ( it is in essence a financial service).

So it is a well established, free market with many different parties offering all different kinds op options for both the business and private car community.
Jeroen

[subraiyr]

Originally Posted by Jeroen

Leasing cars has been going on for decades in the west. Initially, leasing was primarily aimed at the company car markets.

The last couple of years it is gaining more and more popularity for private owners as well. Most people would say convenience and knowing your total cost of ownership are important factors.

There is no government involvement on car leasing. Other than they need to comply with the usual rules and regulations for their sector ( it is in essence a financial service).

So it is a well established, free market with many different parties offering all different kinds op options for both the business and private car community.
Jeroen

How does vehicle insurance happen. Given that in a lease, there is no transfer of asset/instrument - will the insurance be on the owner of the asset or is there a driver insurance. Therefore, will the cost increase because one will have to include driver and co passenger insurance. Vehicle insurance experts - please do provide your comments

[Jeroen]

Originally Posted by subraiyr

How does vehicle insurance happen. Given that in a lease, there is no transfer of asset/instrument - will the insurance be on the owner of the asset or is there a driver insurance. Therefore, will the cost increase because one will have to include driver and co passenger insurance. Vehicle insurance experts - please do provide your comments

It varies country by country. Here in the Netherlands the car itself is insured. Usually by the owner, ie lease-company. Anybody that has permission from the owner can drive the vehicle and is thus automatically insured. On my company car, I also sign a driver agreement with my employer. It states I am allowed to let all my immediate family members drive my company (lease) car.

Whether you include passenger insurance is typically a personal choice. Our company lease contract do. But for instance on my privately owned cars I never do, as most things are already covered bu other insurances that all Dutch people have.

If you do it. Will up the premium obviously.

In the USA it was pretty similar. The one thing that was different; it is really a combined car/owner insurance. So the car was. Insured and the owner can give anybody permission to drive it and they would be insured. In addition, if I would rent a car in the USA, my own car insurance policy would provide some coverage as well.

In the UK it is different as essentially you have a personal driver insurance and it names a particular car. So you can not let anybody drive your car. They have to be insured themselves. There is probably more to it, it has been a while since we owned a car in the UK.

Jeroen
Jeroen

[imzahid]

Leasing cars is very popular here in Dubai. The experience is totally hassle free since all the maintenance as well as the insurance costs are covered under the rental cost. Leasing is generally preferable if you plan for a short term. Also, you have the option of buying the vehicle at a predetermined cost once your leasing period is over. You get a spare vehicle delivered at your door step if your lease car is facing any technical problem and has to be taken to the service center.

[JishD]

There's already a thread on this same topic : http://www.team-bhp.com/forum/showthread.php?t=20127

[FourWheelDrift]

Originally Posted by vinit.merchant

Its all an article. Moneycontrol picked it from Economic time, and even that article is not providing any links to check further. But when I checked Hyundai site for leasing options and clicked on it, it took me to revv's site, where Creta lease starts from 25k a month (leased upto 4 years), that too a petrol one.

So it still not as cheap as it is made out to be from the article.
If it was, these schemes would be advertised from the top of the mountain by the manufacturers (the current market is in such a shape)

Hi Vinit,

I just checked Hyundai India's Instagram account.

Have a look at this post https://www.instagram.com/p/BynCCSUg..._web_copy_link

Also, there's a link at the top of the page which has all the details https://www.hyundai.com/in/en/buy-a-...asing-June2019.

I've copied the contents of the link below.

Hope this helps.

Cheers,

FourWheelDrift

Hyundai Leasing
Hyundai Leasing is the easiest way to have a car. Wouldn’t it be nice if the hassles of ownership, car maintenance, repairs, breakdown assistance, and insurance were all handled by someone else? We have news for you - In case of Hyundai leasing, we offer you just that! What’s more, you only need to pay for as much as you use the car. So have a worry-free drive and leave the rest to us. We are here to take care of your drive.

To know more about Hyundai Leasing , please call toll free no. 1860 266 5253 or e-mail us at hyundaileasing@hmil.net

Lease Rental
Model Variant *Minimum Lease Rental
Santro 1.1 Era (P) ₹ 7,673*
Grand i10 1.2 Era (P) ₹ 8,936*
Elite i20 1.2 Era (P) ₹ 9,813*
Verna 1.4 E(P) ₹ 15,488*
Venue 1.2E ₹ 11,724*
Venue 1.4D CRDI E ₹ 14,437*
Creta 1.4 Diesel E+ ₹ 17,642*

Terms & Conditions
• Above Lease Rentals are inclusive of GST
• The Lease rentals are of *Base Variants of the above mentioned models
• Tenure for the above Lease rentals are of 60 months
• Lease Rental mentioned above are pertain to Delhi
• Insurance and other maintenance Service cost are extra
• Periodical Price and Discount will be applicable

FAQ
Q. How is the lease rental calculated?
Ans. You only pay for how much you drive! i.e. You don’t pay for entire value of the car, you only pay for the usage value of it, and based on the mileage and duration of the leasing contract and the additional services you opt for.

Q. What are the possible contract periods?
Ans. It all depends on your needs. You can select from a minimum of 2 years to a maximum of 5 years. Based on the duration of contract you choose, you can then decide on the mileage.

Q. Can I choose the make and model of the car I want to lease?
Ans. You can choose from any vehicle, variant and color according to your choice and taste, as long as it is in line with your eligibility criteria.

Q. What is the process to return the car to Hyundai Leasing at the end of the contract?
Ans. When a lease contract expires, the leased vehicle must be returned back to Hyundai Leasing usually at the location where the vehicle was originally collected at the inception of the contract. Hyundai Leasing will inspect the vehicle to ensure that it is returned with all documentation and standard accessories like duplicate key, Owner’s Manual, Warranty Book, Original RC Card and ensure that the vehicle is in a ‘standard condition’ which is defined as a vehicle that has been subjected to normal wear and tear considering it is age and mileage. You and Hyundai Leasing will jointly inspect the vehicle and draw up a Vehicle Return Report which records differences between the standard condition defined above and the actual condition of the vehicle. This explains to what extent damage is considered normal or acceptable wear and tear and in which cases it is not. This gives you clarity regarding our damage assessment methodology.

Q. What is the eligibility criteria for leasing a car?
Ans. Salaried employee / Self-employed Professionals / Small & Medium Enterprises

[audioholic]

I went through the website and checked the pricing. The minimum rates considered for a 60 month period are coming to more than the ex showroom price of the car. And this they say is excluding the insurance and maintenance costs. For the base version of Verna which is around 9.5L on the road in Bangalore, I will end up paying 9.2L as the minimum rental which will of course be added with maintenance and insurance costs, which will cross 10L for five years. Now, at the end of five years, the vehicle will no longer be mine. How on earth does this make economic sense? I believe I am messing up the calculations. Hence, if someone can give the actual figures and total cost of ownership it would be great.

Suppose I buy a base Verna, I believe that after five years, even in the worst scenario, it would fetch me 3-4L as resale value. What am I missing in this lease scheme?

[shibujp]

Till it gets quite mainstream and the volume picks up I don't think it's going to be much cheaper than owning it. The major benefit might be avoiding the hassle of owning one.

Does Hyundai enforce a kilometer limit over 5 years and is there a penalty if I give back the car in less than the plan time? In Europe the lease plans are quite innovative.

Drive on,
Shibu.

[jetsetgo08]

Pardon me for the long post. Car in consideration is Creta E+ with ex-showroom and OTR prices in Delhi as per Carwale.

Am I correct with the calculations below?

Owning

• Ex-showroom price : 9,99,990
• On-road price : 11,39,997
• Down payment : 1,40,007
• Loan amount : 9,99,990
• interest rate : 8.85%
• Calculated Emi : 20,685
• Total amt. paid
  after 60 months : 20,685 x 60 = 12,41,100
• Insurance from 2-5yrs : 70,000
• Maintenance for 5 years : 75,000
• Total Expenditure
  (without fuel) : 12,41,100 + 1,40,007 + 70,000 + 75,000 = 15,96,107
• Resale Value of car
  after 5 years(50% OTR) : 0.5 x 11,39,997 = 5,69,999
• Total amount spent
  on car : 15,96,107 - 5,69,999 = Rs. 10,26,108

Lease

1. Monthly Lease : 17,642
2. Total after lease : 17,642 x 60 = 10,58,520
3. Insurance : 90,000
4. Maintenance for 5 yrs : 75,000
5. Total expenditure : 10,58,520 + 90,000 + 75,000 = Rs.12,23,520

Benefit of Owning = 12,23,520 - 10,26,108 = Rs 1,97,412

[panamera13]

I lease cars here in US; the only benefit is I get to drive new car every 3-4 years. It's a little expensive than actual owning the car but sometimes works in the lessee's favor since some German cars are a pain to own after 3-4 years, so it's time to return by the time they start getting expensive to maintain.

FYI: the xls screenshot that I use to calculate my lease.

Also, TIP - I never pay down payment for the cars I lease. If a car is in an accident and is totaled, that down payment is gone. So, I always do a zero down payment and calculate monthly payment based off of that.